he he Repa Repara rati tion ons s Comm Commis issi sion on (RC) (RC) a5ar a5ar4e 4e4 4 6 tra5 tra5ll oat oats s to Unive Univers rsal al 5hi/h 5hi/h 5ere 5ere 4elive 4elivere4 re4 t5o at a time% time% ea/h ea/h 4eliv 4eliver2 er2 ein eing g /overe /overe4 4 2 a Cont Contra/ ra/tt o3 Con4it Con4ition ion Pr/hase an4 Sale provi4ing 3or i4enti/al s/he4les o3 pa2ments. he 3irst installment represente4 1 o3 the total /ost 5as to e pai4 0: months a3ter 4eliver2 an4 the alan/e o3 the total /ost to e pai4 in 1 e;al installments% 5hi/h% in the s/he4le 5ere nmere4 as <1<% <0<% <=<% et/.% the 3irst o3 5hi/h 5as 4e one 2ear a3ter the 3irst installment. o gara garant ntee ee the the 3ait 3aith3 h3l l /omp /ompli lian an/e /e 5ith 5ith the the oli oliga gati tion ons s n4e n4err sai4 sai4 /ont /ontra ra/t /t%% a per3orman/e on4 o3 P>=% 6:=.% 5ith Universal as prin/ipal an4 $anila Sret2 , Fi4elit2 Co.% !n/.% as sret2% 5as e?e/te4 in 3avor o3 RC. "n Ag Ags stt 1% 1960% 1960% RC se4 se4 Univers Universal al an4 its its sret2 sret2 to re/ove re/overr varios varios amon amonts ts o3 mone2 4e n4er the /ontra/ts. Universal /laime4 that the amonts 5ere not 2et 4e an4 4eman4ale. he sret2 /ompan2 also /onten4e4 that the a/tion is prematre% t set p a /ross/laim against Universal 3or reimrsement o3 5hatever amont o3 mone2 it ma2 have to pa2 the plainti33 2 reason o3 the /omplaint% in/l4ing interest% an4 3or the /olle/tion o3 a//mmlate4 an4 npai4 premims on the on4s 5ith interest thereon. @ith leave o3 /ort /ort 3irst 3irst otaine otaine4% 4% the sret2 /ompan2 /ompan2 3ile4 a thir4+pa thir4+part2 rt2 /omplain /omplaintt against against Palo Palo S. Sarmiento Sarmiento%% one o3 the in4emnitors in4emnitors in the in4emnit2 in4emnit2 agreeme agreements. nts. Sarmiento 4enie4 personal liailit2 /laiming that he signe4 the in4emnit2 agreements in ;estion in his /apa/it2 as a/ting general manager o3 Universal. he trial /ort /ort ren4ere ren4ere4 4 4gmen 4gmentt agains againstt Univers Universal. al. en/e en/e%% this this appeal appeal.. Universa Universall /onten4 /onten4e4 e4 that that there there is an os/ os/rit2 rit2 in the the terms terms o3 the the /ontra /ontra/ts /ts in ;es ;estion tion 5hi/h 5ere /ase4 2 RC as to the amonts an4 4e 4ates o3 the 3irst installments 5hi/h shol4 have een 3irst 3i?e4 e3ore a /re4itor /an 4eman4 its pa2ment 3rom the 4etor. Universa Universall points points to the S/he4 S/he4le le o3 o3 Pa2ment Pa2ment o3 o3 the $BS U#!F! U#!F!S S 1 an4 an4 $BS $BS U#!F!S U#!F!S 0% 5hi/h states that the amont o3 3irst installment is P>=%6:0.8: an4 the 4e 4ate o3 its pa2ment is $a2 8% 1961. o5ever% the amont o3 the 3irst o3 the s//ee4ing itemie4 installments is P>6%>97.0 an4 the 4e 4ate is $a2 8% 1960. !n the /ase o3 the $BS U#!F!S = an4 $BS U#!F!S :% the 3irst installments are P68%777.77 an4 4e in l2%
1961 1961 an4 an4 P70%> P70%>6> 6>.68 .68 an4 an4 4e 4e in l2 l2% 1960 1960%% respe respe/ti /tivel vel2 2. !n the the /ontra /ontra/t /t 3or 3or the the pr/hase an4 sale o3 the $BS U#!F!S > an4 $BS U#!F!S 6% the amonts in4i/ate4 as 3irst installments are P>:%>. an4 P>7%>1.>7% an4 the 4e 4ates o3 pa2ment are "/toer 17% 1961 an4 "/toer 17% 1960% respe/tivel2. ISSUE/S: •
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@o# the 3irst installments n4er the = /ontra/ts o3 /on4itional pr/hase an4 sale o3 reparations goo4s 5ere alrea42 4e an4 4eman4ale 5hen the /omplaint 5as 3ile4 o *ES. o he terms o3 the /ontra/ts 3or the pr/hase an4 sale o3 the reparations vessels are ver2 /lear an4 leave no 4ot as to the intent o3 the /ontra/ting parties. hs% in the /ontra/t /on/erning the $BS U#!F!S 1 an4 $BS U#!F!S 0% the parties e?pressl2 agree4 that the 3irst installment representing 1 o3 the pr/hase pri/e or P>=% 6:0. 8: shall e pai4 5ithin 0: months 3rom the 4ate o3 /omplete 4eliver2 o3 the vessels or on $a2 8% 1961% an4 the alan/e to e pai4 in ten (1) e;al 2earl2 installments. he amont o3 P>6%>97.0 4e on $a2 8% 1960% 5hi/h is also /laime4 to e a <3irst installment%< is t the 3irst o3 the ten (1) e;al 2earl2 installments o3 the alan/e o3 the pr/hase pri/e (/iting Reparations Commission vs. Northern Lines, Inc., et al. ). @"# Universal is liale 3or pa2ment o3 premims on the on4s e?e/te4 2 $anila Sret2 o *ES. he pa2ment o3 premims on the on4s to the sret2 /ompan2 ha4 een e?pressl2 n4ertaen 2 U#!'ERSA& in the in4emnit2 agreements e?e/te4 2 it in 3avor o3 the sret2 /ompan2. /ompan2. he premim is the /onsi4eration /onsi4eration 3or 3rnishing the on4s. he oligation to pa2 the same ssists 3or as long as the liailit2 e?ists. o Universal shol4 pa2 P7%0>1.:0 to $anila Sret2. @"# the P1% 4o5n pa2ment ma4e 2 Universal to RC 3or U#!F!S 1 an4 0 /an e applie4 to the 3irst installment garantee4 2 the sret2 o #". o $anila Sret2 /onten4s that the 4o5n pa2ment o3 P1% ma4e 2 Universal /an e applie4 to the 3irst installment 3or U#!F!S 1 an4 0 (an in4ete4ness garant garantee4 ee4 2 $anila $anila Sret2)% Sret2)% ths re4/ing re4/ing its liailit2 liailit2 3rom P>=%6:= P>=%6:=. . to P:=%6:0.% e/ase Art 10>: stiplates that 5here the /re4itor or 4etor 4oes not spe/i32 to 5hi/h liailit2 a pa2ment shall e applie4% it shall e 4eeme4 to appl2 to the most oneros 4et in this /ase% the most imme4iate% 5hi/h is the 3irst installment 3or U#!F!S 1 an4 0. o he Cort hel4 that Arts. 10>0 to 10>: appl2 to persons o5ing several 4ets to one /re4itor% not to sreties 5hose oligation is oth G/ontingent an4 singlar.H o he stan4ing oligation o3 Universal is not st the 3irst installment% t also the 1 e;al 2earl2 installments. hs% given that oth the 3irst installment an4 the 3irst o3 the 1 installments have oth a//re4% the P1% 4o5n pa2ment /annot e applie4 to st one o3 them.
he Spreme Cort 3on4 the terms o3 the /ontra/ts /lear an4 le3t no 4ot as to the intent o3 the /ontra/ting parties that the 3irst installment 4e 0: months a3ter 4eliver2 5as 4i33erent 3rom the 3irst o3 the ten (1) e;al 2earl2 installments o3 the alan/e o3 the pr/hase pri/e (5hi/h are not 4esignate4 as <3irst<%
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