Pacific Vegetable Oil v. Singson (G.R. No. 7917; April 29, 1955)

Singzon, acting through its own broker in San Francisco, Ca., sold to Pacific Vegetable Oil 500long tons of copra at $142 per short ton CIF Pacific Coast. The agreed price was to be covered by anirrevocable letter of credit for 100% of the K price. Pursuant to the K, the Bank of California, on behalfof Pacific, opened an irrevocable credit with China Bank in the Phils. However, Singzon failed to shipthe copra. An agreement however was reached where Singzon promised to deliver 300 long tonsduring the months of Jan and Feb with penalty clause wherein stated that Singzon will be liable for$10,00 as damages and will still be bound to deliver the original 500 long tons in case he still fails todeliver pursuant to the 2nd agreement.Singzon still failed to deliver so Pacific filed for damages. Sinzon filed MtD on ground thatPacific had no personality to file the action as it had no license to do business in the Phils.HELDPacific had personality to sue.Pacific did not transact business in the Phils. It clearly appears that the copra was actuallysold by Singzon in the US-it was entered into the US by Singzons broker who was in California. Notonly was the K entered into the US, it was agreed to be consummated there.Therefore, Pacific Oil has not transacted business in the Phils, as such, it is not required toobtain a license before it could have personality to bring a court action.