NATURE AND EFFECTS OF OBLIGATION - CASES for ARTS. 1165 - 1178
1. OBLIGA OBLIGATION TO GIVE A DETERMI DETERMINA NATE TE THING THING vs. A GENE GENERIC RIC THING THING ARTS. 1165 Gaisano Cagayan, Inc. vs Insurance Company of North America, America, G.R. NO. 1478!, "une 8, #$$% FACTS: Intercapito& 'ar(eting Corporation )I'C* is the trauss the maker maker of Wrangle ranglerr Blu Blue e Jeans Jeans.. +evi trauss )-hi&s.* Inc. (LSPI is the local !istri"utor of #ro!ucts "earing tra!emarks o$ne! "% Le&i Strauss ' Co.. I'C an +-I separate&y o/taine from responent 0re insurance po&icies ith /oo( e/t enorsements. 2/oo( e/ts e/ts in connection connection ith reay3ma reay3mae e The insurance #olicies #ro&i!e #ro&i!e for co&erage on 2/oo( c&othing materia&s hich have /een so& or e&ivere to various customers an ea&ers of the Insure anyhere in the -hi&ippines.2 The #olicies !ene! "ook !e"ts as the 2unpai account sti&& appearing in the oo( of Account of the Insure 45 ays after the time of the &oss covere uner this -o&icy.2
The #olicies #olicies also #ro&i!e #ro&i!e for the follo$ing follo$ing con!itions con!itions:: ). Warra arrant nte! e! that that the Company Company shall shall not be liabl liable e for any unpa unpaid id accou account nt in respec respectt of the merchandise sold and delivered by the Insured which are outstanding at the date of loss for a #erio! in e*cess of si* (+ months from the !ate of the co&ering in&oice or actual !eli&er% of the merchan!ise $hiche&er shall rst occur. Petitioner, -aisano Caga%an, is a customer an! !ealer of the #ro!ucts of IC an! LSPI. /n Fe"ruar% 01, )22), the -aisano Su#erstore Com#le* in Caga%an !e /ro Cit%, o$ne! "% #etitioner, $as consume! "% re. I!"#$%&% '! ()& '(&*s #os( or %&s(ro+&% '! ()& ,r& &r& s(o"s of r&/%+-*/%& "#o()'!0 */(&r'/#s so#% /!% %&#'v&r&% + IMC /!% LS2I. 3es#on!ent le! a com#laint for !amages against #etitioner. It alleges that IC an! LSPI le! $ith res#on!ent their claims un!er their res#ecti&e re insurance #olicies $ith "ook !e"t en!orsements4 that as of Fe"ruar% 01, )22), the un#ai! accounts of #etitioner on the sale an! !eli&er% of rea!%5ma!e clothing materials $ith IC $as P0,))2,061.66 P 0,))2,061.66 $hile $ith LSPI it $as P171,+)7.664 P171,+)7.664 that res#on!ent #ai! the claims of IC an! LSPI an!, "% &irtue thereof, res#on!ent $as su"rogate! to their rights against #etitioner4 that res#on!ent ma!e se&eral !eman!s for #a%ment u#on #etitioner "ut these $ent unhee!e!. 1 The #etitioner conten!s conten!s that it coul! not "e hel! lia"le "ecause the #ro#ert% co&ere! co&ere! "% the insurance #olic #olicies ies $ere $ere !estr !estro%e o%e! ! !ue !ue to fortui fortuitou tous s e&ent e&ent or force force ma8eu ma8eure4 re4 that that res#o res#on!e n!ent9 nt9s s right right of su"rogation has no "asis inasmuch as there $as no "reach of contract committe! "% it since the loss $as !ue to re $hich it coul! not #re&ent or foresee4 that IC an! LSPI ne&er communicate! to it that the% insure! their #ro#erties4 that it ne&er consente! to #a%ing the claim of the insure!.
6ON petitioner &ia/&e for the unpai accounts 3&s4 3&s4 )& 's s('## #'/#& for ()& $!/'% /""o$!(s &v&! 'f ()&r& 's /! '!s$r/!"& o#'"+. T)& #oss &'!0 r&f&rr&% (o + ()& '!s$r/!"& o#'"+ 's for ()& #oss of 0oo%s + ,r& /!% !o( + ()& $!/'% /""o$!(s '() IMC. Ar('"# Ar('"#& & 16 16 of ()& C'v'# Co%& '! /! o#'0/ o#'0/('o ('o! ! (o %&#'v& %&#'v&r r / 0&!&r' 0&!&r'" " ()'!04 ()'!04 ()& #oss #oss or %&s(r$ %&s(r$"(' "('o! o! of /!+()' /!+()'!0 !0 of ()& s/*& '!% %o&s !o( &('!0 &('!0$'s $'s) ) ()& o#'0/( o#'0/('o! 'o! 9G&!$s 9G&!$s !$!:$/! &r'(;
Petitioner9s argument that it is not lia"le "ecause the re is a fortuitous e&ent un!er Article )); 70 of the Ci&il Co!e is mis#lace!. As hel! earlier, #etitioner "ears the loss un!er Article )16; () of the Ci&il Co!e. oreo&er, it must "e stresse! that the insurance in this case is not for loss of goo!s "% re "ut for #etitioner9s accounts $ith IC an! LSPI that remaine! un#ai! ;1 !a%s after the re. Accor!ingl%, #etitioner9s o"ligation is for the #a%ment of mone%. As correctl% state! "% the CA, $here the o"ligation consists in the #a%ment of mone%, the failure of the !e"tor to make the #a%ment e&en "% reason of a fortuitous e&ent shall not relie&e him of his lia"ilit%. 77 The rationale for this is that the rule that an o"ligor shoul! "e hel! e*em#t from lia"ilit% $hen the loss occurs thru a fortuitous e&ent onl% hol!s true $hen the o"ligation consists in the !eli&er% of a !eterminate thing an! there is no sti#ulation hol!ing him lia"le e&en in case of fortuitous e&ent. It !oes not a##l% $hen the o"ligation is #ecuniar% in nature. 7; i?n an o"ligation to !eli&er a generic thing, the loss or !estruction of an%thing of the same kin! !oes not e*tinguish the o"ligation.= If the o"ligation is generic in the sense that the o"8ect thereof is !esignate! merel% "% its class or genus $ithout an% #articular !esignation or #h%sical segregation from all others of the same class, the loss or !estruction of an%thing of the same kin! e&en $ithout the !e"tor9s fault an! "efore he has incurre! in !ela% $ill not ha&e the e@ect of e*tinguishing the o"ligation. 71 This rule is "ase! on the #rinci#le that the genus of a thing can ne&er #erish. -enus nunuan #erit. 7+ An o"ligation to #a% mone% is generic4 therefore, it is not e*cuse! "% fortuitous loss of an% s#ecic #ro#ert% of the !e"tor. 7 . LEGAL DELA3 - ART. 116< o
Telefast &s. Castro, -.3. /. 7+, Fe"ruar% 02, )2
/n 0 o&em"er )21+, Consolacion Bra&o5Castro $ife of #lainti@ Ignacio Castro, Sr. an! mother of the other #lainti@s, #asse! a$a% in Linga%en, Pangasinan. /n the same !a%, her !aughter Soa C. Crouch, $ho $as then &acationing in the Phili##ines, a!!resse! a telegram to #lainti@ Ignacio Castro, Sr. at +1 Wan!a, Scotts"urg, In!iana, <.S.A., ;)6 announcing Consolacion9s !eath. The telegram $as acce#te! "% the !efen!ant in its Dagu#an oEce, for transmission, after #a%ment of the reuire! fees or charges. T)& (&#&0r/* !&v&r r&/")&% '(s /%%r&ss&&. Co!so#/"'o! /s '!(&rr&% '() o!#+ )&r %/$0)(&r So,/ '! /((&!%/!"&. N&'()&r ()& )$s/!% !or /!+ of ()& o()&r ")'#%r&! of ()& %&"&/s&%4 ()&! /## r&s'%'!0 '! ()& U!'(&% S(/(&s4 r&($r!&% for ()& $r'/#. When Soa returne! to the
G&!. R$#& D&*/!% 's N&"&ss/r+ for #&0/# &=&"(s of %&#/+ or %&f/$#( (o /r's& o
Com#ania -eneral &. Araa, Phil. ;11
The #lainti@ "rought this action in the court "elo$ to foreclose a mortgage for ,666 #esos u#on certain lan! in the Pro&ince of Le%te. This suit $as commence! on the )0th !a% of June, )267. There $as no #ro&ision in the contract "% $hich, u#on failure to #a% one installment of the !e"t, the $hole !e"t shoul! thereu#on "ecome at
once #a%a"le. We are of the o#inion that the o"ligation can "e enforce! in this action for onl% the amount !ue an! #a%a"le on the )0th !a% of June, )267. There is no #ro&ision in it !eclaring e*#ressl% that the failure to #a% $hen !ue shoul! #ut the !e"tor in !efault. There $as therefore no !efault $hich $oul! make him lia"le for interest until a !eman! $as ma!e. (Ci&il Co!e, art. ))664 anresa, Com. on Ci&il Co!e, &ol , #. 1+. The transaction !i! not constitute a mercantile loan an! article 7)+ of the Co!e of Commerce is not a##lica"le. There $as no e&i!ence an% !eman! #rior to the #resentation of the com#laint. The #lainti@ is therefore entitle! to interest onl% from the commencement of the action. o
Ba%la &. Silang TraEc Co., 7 Phil. ;11
Petitioner (su"scri"er entere! into an agreement $ith res#on!ent (seller regar!ing the #urchase of fteen ()1 shares of ca#ital stock "% the former from the latter for the sum of P),166.66. Sai! agreement has $ith it certain terms an! con!itions, among $hich are cases $here the su"scri"er shall fail to #a% the installments or to #erform the con!itions or if sai! shares >shall "e attache! or le&ie! u#on "% cre!itors of the su"scri"er, sai! shares are to "e automaticall% re&erte! to the seller an! the #a%ments alrea!% ma!e are to "e forfeite! in fa&or of the seller. /n or "efore Jul% 7), )27, #etitioners faile! to #a% the installment !ue that !a% resulting for the automatic forfeiture of the #a%ments the% alrea!% ma!e. /n the other han!, on August), )27, the res#on!ent cor#oration issue! a resolution $as authoriing the refun! of the installments alrea!% #ai! "% their su"scri"ers. Sai! resolution $as issue! "% res#on!ent for the #ur#ose of terminating the #en!ing ci&il case in&ol&ing the &ali!it% of the shares in uestion $hich $as su"seuentl% !ismisse!. Base! on the sai! resolution, the #etitioners institute! an action for the reco&er% of the sum of mone% $hich the% ha&e #ai! se&erall% to the cor#oration. The cor#oration set u# a !efense stating that sai! resolution $as no longer a##lica"le to the #etitioners since their shares $as alrea!% re&erte! in fa&or of the seller !ue to their failure to #a% on the !ue !ate long "efore the resolution $as issue!. oreo&er, another resolution $as issue! "% the cor#oration on August 00, 027 re&oking an! cancelling the earlier resolution. +. The trial court issue! an or!er against the #etitioners4 an! on a##eal, the CA aErme! the !ecision of the trial court $ith some mo!ications as to the cancellation of the #etitionerGs su"scri#tion $hich $as re&erse! "% sai! a##ellate court. W/ un!er the contract "et$een the #arties the failure of the #urchaser to #a% an% of the uarterl% installments on the #urchase #rice automaticall% gi&e rise to the forfeitures of the amount alrea!% #ai! an! the re&ersions of the shares to the cor#oration HLD: The contract here in&ol&e! #ro&i!es that if the #urchaser fails to #a% an% of the installments $hen !ue, the shares of stock $hich are the o"8ect of the sale are to re&ert to the seller an! the #a%ments alrea!% ma!e are to "e forfeite! in fa&or of sai! seller. The seller, through its "oar! of !irectors, annulle! a #re&ious resolution rescin!ing the sale an! !eclare! the forfeiture of the #a%ments alrea!% ma!e an! the re&ersion of the shares of stock to the cor#oration. That such forfeiture $as ine@ecti&e. The contract !i! not e*#ressl% #ro&i!e that the failure of the #urchaser to #a% an% installment $oul! gi&e rise to forfeiture an! cancellation $ithout the necessit% of an% !eman! from the seller4 an! un!er article ))66 of the Ci&il Co!e (no$ Article ))+2 #ersons o"lige! to !eli&er or !o something are not in !efault until the moment the cre!itor !eman!s of them 8u!iciall% or e*tra8u!iciall% the fullment of their o"ligation, unless a. the o"ligation or the la$ e*#ressl%
#ro&i!es that !eman! shall not "e necessar% in or!er that !efault ma% arise, or ". "% reason of the nature an! circumstances of the o"ligation it shall a##ear that the !esignation of the time at $hich the thing $as to "e !eli&ere! or the ser&ice ren!ere! $as the #rinci#al in!ucement to the creation of the o"ligation. 7.
analac &. -arcia, + Phil. 0)+ GR No. L-7. Fe"ruar% 0, )2;+ In )2;7, !uring the Ja#anese in&asion, the !efen!ant took a month5"%5month o@stage from the house of the actor in the street of Austurias, num/er 44!, 'ani&a city, ith a month&y rent of -#$ -aya/&e on the 0rst ay after the #$th of each month.
There $as no !efault in the month of Fe"ruar%, rst, "ecause no one $as #resent at the !efen!ant9s !omicile in that month to collect as $as the agreement or, at least, lack of agreement "et$een the #arties4 Secon!, "ecause it is of historical an! 8u!icial kno$le!ge that the frightful an! enormous "attle for the li"eration of anila $as unleashe! !uring all this month, causing a tremen!ous confusion an! chaos in the cit% life in this cit% an! in the su"ur"s, es#eciall% in the Housing, !ue to the !estruction an! the res that re!uce! a consi!era"le #art of the "uil!ings an! the hamlet to ru""le an! ashes. In fact, the month of Fe"ruar% $as e*#ressl% inclu!e! in the !ecree of moratoria issue! "% the *ecuti&e. There $as also no !ela% in arch "ecause the same court esta"lishe! in its 8u!gment the fact that the claim o@ere! to #a% =in the latter #art of arch.= In this sentence it is #erfectl% #ossi"le that the o@er $as ma!e $ithin the rst &e !a%s after the t$entieth of arch, "ut e&en conce!ing that a little has "een e*cee!e! that #erio! can not "e conclu!e! that there $as !ela% in &ie$ of the e*traor!inaril% a"normal circumstances Which $ere in force at the time, an!, a"o&e all, in &ie$ of the fact that, accor!ing to the !ocuments in the le, the #lainti@ or his #erson in charge ha! the ha"it of carr%ing out the collection $ith rather irregularit%. It "eing agree! that rent #a%ment $oul! "e ma!e at the !e"tor9s !omicile, he ha! the right to e*#ect to "e #resente! $ith the recei#t, not incurring in !efault for the time that the cre!itor allo$e! to go $ithout collecting. (Ci&il Co!e Section ))).
E"&('o! >)&! D&*/!% 's No( N&"&ss/r+ o
De la 3osa &. Bank of P.I. 1) Phil 20+
Defen!ant Bank starte! a contest of !esigns an! #lans for the construction of a "uil!ing announcing that #ries $ill "e #ai! not later than o&. 76, )20). The #lainti@, Julio Dela 3osa, took #art in the contest an! incurre! e*#enses. Bank !i!nGt name 8u!ges an! faile! to a$ar! #ries on sai! !ate. W/ "ank is at !efault for not a$ar!ing the #ries on sai! !ate The "ank cannot "e hel! lia"le for the mere la#se of time. There shoul! "e !eman!, 8u!icial or e*tra8u!icial. o
3o!rigue &. Belgica, ))) Phil 066
/n o&em"er )2, )211, after the la#se of the se&ent% (6 !a% #erio! sti#ulate! in the com#romise agreement, an! u#on the failure of the !efen!ants to #a%, the #lainti@s #resente! a motion #ra%ing that the !efen!ants "e or!ere! to !eli&er to the #lainti@s the Certicates of the Titles so that ); of the #ro#ert% #ertaining to the !efen!ant coul! "e segregate!. An o##osition $as registere! "% the !efen!ants, conten!ing that the ina"ilit% to meet the o"ligation to #a% the P71,666.66 $as !ue to the !eli"erate refusal of the #lainti@s to grant the authorit% to !efen!ant Porrio Belgica to negotiate the sale or mortgage of the 7+4 an! that since the !ecision ha! create! reci#rocal o"ligations, the refusal or failure on the #art of one to com#l% !i! not make the other in !efault. In the o##osition, the !efen!ants #ra%e! that the
#lainti@s "e or!ere! to grant !efen!ant Porrio Belgica the authorit% to negotiate the sale or mortgage of the 7+. the lo$er court, /n o&em"er 0+, )211, or!ere! the !efen!ants to surren!er to the Court the TCT9s the% $ith!re$, not latter than Decem"er ), )211.
A"ella &. Francisco, 11 Phil. ;; G.R. No. L-6 D&"&*&r ?4 1<? o
the selling of lan! $ith #a%ment at s#ecie! time, so that the seller coul! #a% o@ certain !e"ts that $ere !ue on sai! !ate. Defen!ant -uillermo B. Francisco #urchase! from the -o&ernment on installments, lots 27 to 2;1 of the Tala state in o&aliches, Caloocan, 3ial. He $as in arrears for some of these installments. Hanlon &. Hausserman, ;6 Phil. 2+ one% nee!e! to nance mining installations if sai! installations ha! to "e ma!e on a certain !ate. It is not essential for the contract to categoricall% state that time is of the essence4 the intent is suEcient as long as this is im#lie!. o
o
3o!rigo 3i&era &s. S#ouses Sal&a!or Chua, -.3. os. );;1K);;0. Januar% );, 06)1 ())+2
Mor/ So#v&!%' o o
Pantaleon &s American *#ress -.3. o. );0+2, a% 0662 Santos entura Hocorma Foun!ation, inc., &s. Santos, -.3. /. )1766;, o&em"er 1, 066;
Mor/ A""''&!%' o o
anuel &s. CA, -.3. o. 21;+2 Jul% 01, )22) !a. !e illauel &. anila otor Co., Inc. )6; Phil. 20+
COM2ENSATION MORAE Cor(&s vs. CA4 G.R. No. 16?84 @$#+ 14 ??6 FACTS This case in&ol&es the sale of three lots of Antonio Cortes, un!er Transfer Certicate of Title (TCT o. 7)))75A, TCT o. 7)2)75A an! TCT o. 706)75A, locate! at Baclaran, Paraaue, etro anila. It is to "e "ought "% illa s#erana De&elo#ment Cor#oration on a #urchase #rice of P7,66,666.66. The cor#oration a!&ance! a total sum P),0)7,666.66. The !ee! containe! the con!ition that the cor#oration shall #a% the !o$n#a%ment in full !uring the e*ecution of the instrument. Ho$e&er, it $as esta"lishe! that such amount shall "e #ai! onl% $hen the TCTs ha! "een !eli&ere! to the cor#oration. The cor#oration sought for s#ecic #erformance for the !eli&er% of the !ocuments "ut Cortes ans$ere! that the cor#orationGs failure to com#l% "% the terms of the contract constitutes !ela% $hich in e@ect !eman!s the cor#oration to #a% the
"alance #lus interest or to cancel the sale, forfeit the a!&ances, #lus !amages on "oth o#tions.
ISSUE Whether or not there is !ela% in the #erformance of the #artiesG o"ligation that $oul! 8ustif% the rescission of the contract of sale RULING o. There is no 8ustication for the rescission of the contract of sale. There $as com#ensatio morae in this case. The inaction of Cortes an! the Cor#oration ren!ers "oth #art% in !ela% since the o"ligation $as reci#rocal, thus, its #erformance shoul! ha&e "een simultaneous. Cortes is %et to !eli&er the TCTs $hile the Cor#oration is %et to #a% in full the !o$n#a%ment. Their mutual !ela% cancels out the e@ects of !efault $hich makes no #art% guilt% of !ela%.
2r'"&4 I!". v. R'##or//4 &( /#. L-8?54 M/+ 54 1<55 FACTS A tenant, Price Inc., lease! a #ro#ert% un!er anuel Camus for ten ()6 %ears. The sai! contract containe! con!itions that the lessor must make certain im#ro&ements on the #ro#ert% such as ele&ation an! the "uil!ing of stone $alls surroun!ing the area. When Camus !i! not make the im#ro&ements, Price Inc. sue! him for s#ecic #erformance $hich is to make the im#ro&ements. Camus in turn sue! Price Inc. for unla$ful !etainer for non5#a%ment of rent.
ISSUE Whether or not Price &iolate! the Contract of Lease for on5Pa%ment of rentals to Camus.
RULING o. Price !i! not &iolate the contract of lease. There is #rima facie e&i!ence that Camus !i! not com#l% $ith the terms of the lease agree! u#on. Article ))+2 of the Ci&il Co!e of the Phili##ines #ro&i!es: MIn reci#rocal o"ligation, neither #art% incurs in !ela% if the other !oes not com#l% or is not rea!% to com#l% in a #ro#er manner $ith $hat is incum"ent u#on him. From the moment one of the #arties fullls his o"ligation, !ela% "% the other "egins.N
Pursuant to the sai! article, Price Inc. $oul! not "e in !efault, e&en in case of non5 #a%ment of the rentals, if Camus ha! not fullle! his o"ligations as a lessor, as inten!e! "% Price Inc. in the action for s#ecic #erformance commence!. Price Inc., therefore, cannot "e guilt% of unla$ful !etainer, unless Camus is e*onerate!, in the action for s#ecic #erformance, from the charge of "reach of the contract of lease. He cannot in&oke the right of #ossession unless he com#lies $ith his #art on the contract of lease.
N&0#'0&!"&
D&0r&& of D'#'0&!"& R&:$'r&%
S'"/* vs. @or0&4 G.R. NO. 15<6174 A$0$s( 84 ??7 FACTS /n /cto"er )2, )2, t$o arme! men entere! the #a$nsho#, o$ne! "% 3o"erto Sicam O the #etitioner, an! took a$a% $hate&er cash an! 8e$elr% $ere foun! insi!e the #a$nsho# &ault. Sicam $rote a letter to Lulu Jorge, the res#on!ent, informing her of the loss of her 8e$elr% !ue to the ro""er% inci!ent. Lulu le! an action for in!emnication of the lost 8e$elr% #lus !amages. Sicam conten!s that it cannot "e hel! lia"le for the lost item since it $as !ue to a fortuitous e&ent an! claime! that the% $ere not negligent at all.
ISSUE Whether or not Sicam is lia"le for the lost item #lus !amages.
RULING es. Sicam is lia"le for the &alue of the lost item #lus !amages.
As a general rule, loss !ue to fortuitous e&ent e*em#ts a #erson from criminal lia"ilit%. Fortuitous e&ents "% !enition are e*traor!inar% e&ents not foreseea"le or a&oi!a"le. It is therefore, not enough that the e&ent shoul! not ha&e "een foreseen or antici#ate!, as is commonl% "elie&e! "ut it must "e one im#ossi"le to foresee or to a&oi!. The mere !iEcult% to foresee the ha##ening is not im#ossi"ilit% to foresee the same. An! the "ur!en of #ro&ing that the loss $as !ue to a fortuitous e&ent rests on him $ho in&okes it. An!, in or!er for a fortuitous e&ent to e*em#t one from lia"ilit%, it is necessar% that one has committe! no negligence or miscon!uct that ma% ha&e occasione! the loss. 3o""er% #er se is not a fortuitous e&ent since the sai! e&ent, o$ing to the nature of the "usiness entere! into is actuall% foreseen an! antici#ate!. Thus, the% shoul! ha&e ma!e all the necessar% measures an! #recautions $hich constitutes failure to com#l% $ith the !iligence reuire! of a #a$nsho# making them guilt% of negligence.
M&r/#"o vs. R/*o+4 G.R. NO. 158<114 M/r") 4 ??8 FACTS The e&i!ence on recor! has esta"lishe! that in the %ear )2 the ational Po$er Cor#oration (PC le! $ith the TC Queon Cit% a case for e8ectment against se&eral #ersons allege!l% illegall% occu#%ing its #ro#erties in Baesa, Queon Cit%. Ju!gement $ere ren!ere! against the #lainti@ an! $ere or!ere! to &acate the su"8ecte! #remises. PC $rote eralco for imme!iate !isconnection of the electric su##l% of all resi!ential an! commercial houses un!er the PC #ro#ert%. Among those $hose electricit% $as to "e cut o@ $as Leoncio 3amo%Gs resi!ence. He an! his $ife claime! that the% $ere the registere! o$ners of the #arcel of lan! an! the% $ere outsi!e the PC #ro#ert%. Ho$e&er, he $as threatene! "% the arme! men $ho accom#anie! "% the eralco sta@ !isconnecting the lines. It $as later foun! out that the resi!ence of the #lainti@s $ere in!ee! outsi!e the PC #ro#ert% an! eralco $as or!ere! to reconnect the electricit% ser&ice for the a@ecte! houses. The sai! resi!ences later on le! an action for !amages against eralco. ISS<: Whether or not eralco is lia"le for !amages 3
For($'(o$s Ev&!( Nakpil & Sons v. CA, G.R. NO. L-47851 April 15, 1988
FACTS The Phili##ine Bar Association (PBA, a non5#rot organiation !eci!e! to #ut u# a "uil!ing in Intramuros, anila an! hire! Juan ak#il ' Sons to #lan the s#ecications, $hile
In )2+, there $as an unusuall% strong earthuake $hich cause! the "uil!ing hea&% !amage, $hich le! the "uil!ing to tilt for$ar!, lea!ing the tenants to &acate the #remises.
ISSUE Whether or not the fortuitous e&ent e*em#ts the #arties from lia"ilit% to #a% for !amages
RULING es. The #arties are lia"le for !amages. Accor!ing to Art. )); of the Ci&il Co!e, states that no #erson shall "e res#onsi"le for e&ents, $hich coul! not "e foreseen. But to "e e*em#t from lia"ilit% !ue to an act of -o!, either of the follo$ing must occur: ) The cause of "reach must "e in!e#en!ent of the $ill of the !e"tor 0 The e&ent must "e unforeseea"le or una&oi!a"le 7 The e&ent must "e such that it $oul! ren!er it im#ossi"le for the !e"tor to fulll the o"ligation ; The !e"tor must "e free from an% #artici#ation or aggra&ation of the in!ustr% to the cre!itor. In the case at "ar, although the !amage $as ultimatel% cause! "% the earthuake $hich $as an act of -o!, the !efects in the construction, as $ell as the !e&iations in the s#ecications an! #lans aggra&ate! the !amage, an! lessene! the #re&enti&e measures that the "uil!ing $oul! other$ise ha&e ha!.
Ass&( 2r'v/('/('o! Tr$s( vs. T.@. E!(&rr's& G.R. No. 1671<5 M/+ 84 ??<
FACTS Asset Pri&atiation Trust is a go&ernment entit% create! to conser&e, #ro&isionall% manage an! !is#ose assets of go&ernment institutions. It ha! acuire! assets consisting of machiner% an! refrigeration eui#ment store! at the -ol!en Cit% com#oun!. The com#oun! $as lease! to an! is in the #h%sical #ossession of Creati&e Lines, Inc., (Creati&e Lines. The assets in&ol&e! $ere sol! on an as5is5 $here5is "asis. Asset Pri&atiation Trust entere! into an a"solute !ee! of sale o&er certain eui#ments $ith TJ nter#rise. The sai! go&ernment entit% $as a"le to #ull out some eui#ments "ut faile! to #ull out the last se&en ( items from the sai! com#oun! since Creati&e Lines em#lo%ees #re&ente! res#on!ent from hauling the remaining machiner% an! eui#ment. TJ nter#rise le! for an action for s#ecic #erformance an! !amages an! $ere a"le to take the remaining #ro#erties. <#on ins#ection ho$e&er, the machiner% an! eui#ment $ere !amage! an! ha! missing #arts.
ISSUE Whether or not Asset Pri&atiation Trust is e*em#te! from lia"ilit% since the failure to make the actual !eli&er% $as "e%on! his control. RULING o. Asset Pri&atiation Trust is still lia"le. Art. )); of the Ci&il Co!e #ro&i!es that e*ce#t in cases e*#ressl% s#ecie! "% the la$, or $hen it is other$ise !eclare! "% sti#ulation, or $hen the nature of the o"ligation reuires assum#tion of risk, no #erson shall "e res#onsi"le for those e&ents $hich coul! not "e foreseen, or $hich though foreseen, $ere ine&ita"le. The elements of a fortuitous e&ent are: (a the cause of the unforeseen an! une*#ecte! occurrence, must ha&e "een in!e#en!ent of human $ill4 (" the e&ent that constitute! the caso fortuito must ha&e "een im#ossi"le to foresee or, if foreseea"le, im#ossi"le to a&oi!4 (c the occurrence must ha&e "een such as to ren!er it im#ossi"le for the !e"tors to fulll their o"ligation in a normal manner, an!4 (! the o"ligor must ha&e "een free from an% #artici#ation in the aggra&ation of the resulting in8ur% to the cre!itor. A fortuitous e&ent ma% either "e an act of -o!, or natural occurrences such as Roo!s or t%#hoons, or an act of man such as riots, strikes or $ars. Ho$e&er, $hen the loss is foun! to "e #artl% the result of a #ersonGs #artici#ation $hether "% acti&e inter&ention, neglect or failure to act, the $hole occurrence is humanie! an! remo&e! from the rules a##lica"le to a fortuitous e&ent.
Us$r'o$s Tr/!s/"('o!s Castro v. Tan, !5 SCRA "#1
FACTS The res#on!ent, Angelina Tan an! her hus"an! entere! into a contract of loan of P76,666 $ith #etitioners. Isagani an! Dios!a!a Castro $ith their house an! lot as a securit% to the sai! loan. In case of failure to #a%, an interest of 1 #er month, com#oun!e! monthl% $ill "e im#ose!. When her hus"an! !ie!, Angelina Tan $as left $ith the res#onsi"ilit% of #a%ing the loan $hich she faile! to !o u#on maturit%. The #ro#ert% $as then foreclose! an! the res#on!ents $ere e8ecte! from the #ro#ert%. 3es#on!ents le! for a com#laint for nullication of the mortgage an! foreclosure for the reason that the im#ose! interest rate $as unconsciona"le. ISS<: Whether or not the interest e*#ressl% sti#ulate! in the contract shoul! "e nullie! 3
FACTS Petitioner, Ileana acalinao, BPI astercar! hol!er. acalinao ma!e some #urchases through the use of the sai! cre!it car! an! !efaulte! in #a%ing for sai! #urchases. She later recei&e! from BPI a letter !eman!ing #a%ment of cre!it #lus the #enalt% fee.
ISSUE Whether or not the re!uction of interest rate shoul! "e u#hel! since the sti#ulate! interest rate $as unconsciona"le an! iniuitous an! thus, illegal. RULING es. The interest rate shoul! "e re!uce!. The Su#reme Court rule! that the interest rate an! #enalt% charge of 7 #er month shoul! "e euita"l% re!uce! to 0 #er month or 0; #er annum. Although the Terms an! Con!itions -o&erning the Issuance an!
2r&s$*('o! ()/( I!(&r&s(s or 2r'or I!s(/##*&!(s )/v& &&! /'% )ill v. *+loso, #1 'il. 1!
FACTS a*ima eloso e*ecute! an! signe! a !ocument containing a #romise to #a% the &alue of goo!s #urchase! in installment. Pa%ment of #rinci#al $as agree! to "e monthl% an! an interest $ill "e im#ose! u#on the un#ai! #ortion on a monthl% "asis also. Such !ocument $as in!orse! to Hill "% the original hol!er. The note $as issue! as #a%ment for four installments for the months of Fe"ruar%, arch, A#ril an! a%, )22). /n Jul% )2)), Hill "rought action to reco&er the amount !ue an! the interest incurre! from Decem"er, )2)6 to June, )2)) $hich amounts to P;7.) #lus the cost of suit le!.
ISSUE Whether or not eloso is lia"le for the #a%ment of the #rinci#al an! interest incurre! from Decem"er )2)6 to June )2))
RULING es. eloso is still lia"le to #a% for the #rinci#al amount o$e!. He is also lia"le for interest to "e incurre! for non5#a%ment from Jul% )2)) until the $hole sum is com#letel% #ai!. Ho$e&er, eloso cannot "e hel! lia"le for the interest on the #rinci#al of the #romissor% note from Decem"er )2)6 to June )2)). It cannot "e reco&ere! since it is the #resum#tion of la$ as state! in the Ci&il co!e that a recei#t from the cre!itor
for the #rinci#al, $hich contains no sti#ulation regar!ing interest e*tinguishes the o"ligation of the !e"tor $ith regar! thereof.
'+r+ v. Gar%ia, 7 'il. 1"
FACTS The !efen!ant, Juan -arcia Bosue sol! to the #etitioner, Fernan!o Pere, the house in uestion $here he maintains the right to re#urchase the #ro#ert% at an% time "efore the 7) st of arch )261. Bosue also maintains #ossession of the #ro#ert% as a tenant, an! #a% for such use an! occu#ation until he "u%s "ack the sai! #ro#ert%. Ho$e&er in August )26;, the rst contract $as cancelle! an! the #ro#ert% $as sol! to Fernan!o Pere. Pere signe! a !ocument e&i!encing that he gi&es Bosue the right to re#urchase the #ro#ert% until arch )261. othing $as agree! a"out the occu#ation of the #ro#ert% in the secon! contract. Bosue continue! to "e in #ossession of the #ro#ert% until a% )261, $hen he a"an!one! it. There $as e&i!ence that Bosue $as a"le to #a% for the rent for three months "et$een Januar% )26; to a% )261. Pere "rought this action to reco&er the amount of rent !ue to Bosue.
ISSUE Whether or not Bosue is lia"le to #a% for the rent in the a"sence of contact to the such RULING es. Bosue is lia"le to #a% for the rent. Accor!ing to the #ro&isions of the Article )))6 of the Ci&il Co!e, the recei#t !ate! June )26; constitutes as an e&i!ence that the #rior rent ha! "een #ai!. An! although the secon! contract of the #arties !oes not contain an% agreement a"out the lease, PereG continue! occu#ation of the #ro#ert% !es#ite the termination of the original contact means that there $as im#lie! rene$al of such lease. This makes him lia"le for such rent.
$anila Train/ S0ppl & Co. v. $+ina G.R. No. L-1477
$a #1, 191
FACTS ariano e!ina, the !efen!ant, ha! an account $ith anila Tra!ing Su##l% ' Co., the #etitioner. e!ina e*ecute! a #romissor% note to #etitioner to #a% o@ his accounts in monthl% installments. A %ear after, anila Tra!ing ' Su##l% Co le! a com#laint against e!ina for failure to com#l% $ith the agreement of #a%ing the installments !ue on the note for the months of Se#tem"er )21+ u# to Januar% )21, $hich makes the un#ai! #rinci#al !ue an! !eman!a"le.
e!ina #ro!uce! ten recei#ts "efore the court, among them $as !ate! Januar% )21, an! claime! that such recei#t raises the #resum#tion that #rior installments $ere #ai!.
ISSUE Whether or not e!ina raises the #resum#tion that #rior installments ha! "een #ai!. RULING o. Such recei#ts !i! not in!icate that the% $ere issue! for the installments corres#on!ing to the month of Januar%, )21. An! e&en if such ha! "een ma!e, the resulting #resum#tion $oul! onl% "e #rima facie. The e&i!ence $as clear that the #a%ments ma!e !o not corres#on! to the installments falling !ue on the !ates of the genuine recei#ts.
