obligations and contract case digest

7/24/2019 Obligations and Contract Case Digest

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COURTESY OF SU LAW 2011

ANG YU ASUNCION VS. COURT OF APPEALS

238 SCRA 602

FACTS:

On July 2! 18"! # S$%&n' A($n'$' C&()l#*n+ ,&- S)$%*,*% P$-,&-(#n%$ #/ ,*l$' y An

Yu A/un%*&n #n' $ T*&n! $+ #l.! ##*n/+ 4&y Cu Un5*$n #n' J&/$ T#n $,&-$ +$ R$*&n#l

T-*#l C&u-+ &, #n*l#.

T$ )l#*n+*,,/ $-$ +$n#n+/ &- l$//$$/ &, -$/*'$n+*#l #n' %&(($-%*#l /)#%$/ &n$' y

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+$y #-$ &,,$-*n +& /$ll +$ )-$(*/$/ #n' #-$ *7*n +$( )-*&-*+y +& #%u*-$ +$ /#($. 9u-*n

n$&+*#+*&n/! 4&y Cu Un5*$n &,,$-$' # )-*%$ &, P6(*ll*&n *l$ )l#*n+*,,/ (#'$ # %&un+$- &,

&,,$- &, P;(*ll*&n. Pl#*n+*,, +$-$#,+$- #/<$' +$ '$,$n'#n+/ +& )u+ +$*- &,,$- *n -*+*n +& *%

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+& /$ll +$ )-&)$-+y +& +$(.

T$ %&u-+ '*/(*//$' +$ %&()l#*n+ &n +$ -&un' +#+ +$ )#-+*$/ '*' n&+ #-$$ u)&n +$

+$-(/ #n' %&n'*+*&n/ &, +$ )-&)&/$' /#l$! $n%$! +$-$ #/ n& %&n+#%+ &, /#l$ #+ #ll.

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/u5$%+ +& +$ n&+*%$ &, l*/ )$n'$n/.



ISSUE:

C#n 4u$n R$#l+y $ &un' y +$ -*+ &, $>$%u+*&n y 7*-+u$ &, +$ n&+*%$ &, l*/ )$n'$n/?

RULING:

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#n' @% +$ /u5$%+)$-/&n/ &! 7*$$' '$(#n'#*l*+y &, +$ &l*#+*&n #-$ +$ #%+*7$ @&l*$

#n' +$ )#//*7$ @&l*&- /u5$%+/.

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+& -$n'$- /&($ /$-7*%$. A %&n+-#%+ un'$-&$/ 7#-*&u/ /+#$/ +#+ *n%lu'$ *+/ n$&+*#+*&n &-

)-$)#-#+*&n! *+/ )$-,$%+*&n #n'! ,*n#lly! *+/ %&n/u((#+*&n.

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*n'*n 5u-*'*%#l -$l#+*&n. In /#l$/! )#-+*%ul#-ly! +& *% +$ %#/$ #+ $n% $l&n/! +$ %&n+-#%+

*/ )$-,$%+$' $n # )$-/&n! %#ll$' +$ /$ll$-! &l*#+$/ *(/$l,! ,&- # )-*%$ %$-+#*n! +& '$l*7$- #n'

+& +-#n/,$- &n$-/*) &, # +*n &- -*+ +& #n&+$-! %#ll$' +$ uy$-! &7$- *% +$ l#++$-

#-$$/.

T$ -$*/+-#+*&n &, l*/ )$n'$n/ (u/+ $ *n'$)$n'$n+ly #''-$//$' *n #))-&)-*#+$

)-&%$$'*n/.T$-$,&-$! 4u$n R$#l+y %#nn&+ $ $l' /u5$%+ +& +$ -*+ &, $>$%u+*&n *//u$' y +$

-$/)&n'$n+ Ju'$! l$+ #l&n$ &u/+$' ,-&( +$ &n$-/*) #n' )&//$//*&n &, +$ )-&)$-+y! *+&u+

,*-/+ $*n 'uly #,,&-'$' *+/ '#y *n %&u-+.



ROMERO vs. CA

G.R. No. 107207 November 23, 1995

Facts:

Romero, a civil engineer, was engaged in the business of production,manufacture and exportation of perlite filter aids, permalite insulation andprocessed perlite ore. In 1988, he decided to put up a central warehouse in MetroManila. Flores and his wife offered a parcel of land measuring 1,9! s"uare meters. #helot was covered in a #$# in the name of private respondent %nri"ueta $hua vda. de&ngsiong. 'etitioner visited the propert( and, except for the presence of s"uatters in thearea, he found the place suitable for a central warehouse. Flores called onpetitioner with a proposal that should he advance the amount of '),))).)) whichcould be used in ta*ing up an e+ectment case against the s"uatters, privaterespondent would agree to sel l the proper t( for onl( '8))s"uaremeter. Romero agreed. -ater, a /eed of $onditional 0ale was executed between

Flores and &ngsiong.'urchase price '1,21,2)).))3 /ownpa(ment ')435alance to be paid 6 da(s after the removal of all the s"uatters3 upon fullpa(ment, &ngsiong shall execute deed of absolute sale in favor of Romero.&ngsiongsought to return the '),))).)) she received from petitioner since, she said, she couldnot get rid of the s"uatters on the lot. 0he opted to rescind the sale in view of her failure to get rid of the s"uatters. Regional #rial $ourt of Ma*ati rendered decisionholding that private respondent had no right to rescind the contractsince it wasshe who violated her obligation to e+ect the s"uatters from the sub+ect propert( andthat petitioner, being the in+ured part(, was the part( who could, under 7rticle 1191 of the$ivil $ode, rescind the agreement.

Isse:

Is there a perfected contract of sale

!e"#:

%0. 7 sale is at once perfected when a person :the seller; obligates himself,for a price certain, to de liver and to t r a n sf er o wn e r s h i p o f a sp e c i f i e dt h i n g o r r i gh t t o a no t h e r : t h e b u ( er ; o ve r w h i c h t h e l a t t er a g r e e s . :5I-7#%R7- and R%$I'R&$7- $<7R7$#%RI0#I$ &F 07-%;.

In determining the real character of the contract, the title given to it b( the parties is notas much significant as its substance. For example, a deed of sale, althoughdenominated as a deed of conditional sale, ma( be treated as absolute in nature, if titleto the propert( sold is not reserved in the vendor or if the vendor is not granted the rightto unilaterall( rescind the contract predicated on the fulfillment or non=fulfillment, as thecase ma( be, of the prescribed condition. From the moment the contract isperfected, the parties are bound not onl( to the fulfillment of what has beenexpressl( stipulated but also to all the conse"uences which, according to



their nature, ma( be in *eeping with good faith, usage and law. >nder theagreement, private respondent is obl igated to evict the s"uat ters onthe propert(. #he e+ectment of the s"uatters is a condition the operative act of whichsets into motion the period of compl iance b( pet i t ioner o f h is ownobl igat ion, i .e t o p a ( t he b a l an c e o f t h e p u r ch a s e p r i ce .

' r i v a t e respondent?s failure to remove the s"uatters from the propert( within thestipulated period gives petitioner the right to either refuse to proceed with the agreementor waive that condition in consonance with 7rticle 16 of the $ivil $ode.

#his option clearl( belongs to petitioner and not to private respondent. #here was nopotestative condition on the part of &ngsiong but a mixed condition dependent not onthe will o f th e ve ndor a lone but a lso of t h i rd perso ns l i *e th e s" uat te rsand gov ern men t age nci es and per son nel concerned.

SYQUIA vs. COURT OF APPEALS and THE MANILA MEMORIAL PARK CEMETERY, INC.,



(digest by Katrina Gtierre!"

FACTS:

On Mar#$ %, &'', )an, C*ra!*n, Car+*ta and Ant$*ny a++ srnaed -yia, /+ainti001a//e++ants $erein, 0i+ed a

#*/+aint 0*r daages against de0endant1a//e++ee, Mani+a Me*ria+ Par2 Ceetery, In#. (MMPC 0*r brevity"

T$e #*/+aint a++eged a*ng *t$ers, t$at /rsant t* a 3eed *0 -a+e and Interent Order N*. &45 e6e#ted

bet7een )an ). -yia and MMPC, t$e 0*rer, 0at$er *0 de#eased 8i#ente )an ). -yia at$*ri!ed and

instr#ted MMPC t* inter t$e reains *0 de#eased in t$e Mani+a Me*ria+ Par2 Ceetery #*n0*rab+y and in

a##*rdan#e 7it$ MMPC interent /r*#edres9

T$at /re/arat*ry t* trans0erring t$e said reains t* a ne7+y /r#$ased 0ai+y /+*t a+s* at t$e #eetery, t$e

#*n#rete va+t en#asing t$e #*00in *0 t$e de#eased 7as re*ved 0r* its ni#$e ndergr*nd 7it$ t$e assistan#e *0

#ertain e/+*yees *0 MMPC9

T$at as t$e #*n#rete va+t 7as being raised t* t$e sr0a#e, t$e -yias dis#*vered t$at t$e #*n#rete va+t $ad a

$*+e a//r*6iate+y t$ree (:" in#$es in diaeter near t$e b*tt* *0 *ne *0 t$e 7a++s #+*sing *t t$e 7idt$ *0 t$e

va+t *n *ne end and t$at 0*r a #ertain +engt$ *0 tie (*ne $*r, *re *r +ess", 7ater drained *t *0 t$e $*+e9

T$at /rsant t* an at$*rity granted by t$e Mni#i/a+ C*rt *0 Para;ae, /+ainti00s 7it$ t$e assistan#e *0

+i#ensed *rti#ians and #ertain /ers*nne+ *0 MMPC #ased t$e */ening *0 t$e #*n#rete va+t . T$at /*n */ening

t$e va+t, t$e 0*++*7ing be#ae a//arent t* t$e -yias (a" t$e interi*r 7a++s *0 t$e #*n#rete va+t s$*7ed

eviden#e *0 t*ta+ 0+**ding9 (b" t$e #*00in 7as entire+y daaged by 7ater, 0i+t$ and si+t #asing t$e 7**den /arts t*7ar/ and se/arate and t* #ra#2 t$e vie7ing g+ass /ane+ +*#ated dire#t+y ab*ve t$e $ead and t*rs* *0 t$e de#eased9

(#" t$e entire +ining *0 t$e #*00in, t$e #+*t$ing *0 t$e de#eased, and t$e e6/*sed /arts *0 t$e de#eased<s reains

7ere daaged and s*i+ed by t$e a#ti*n *0 t$e 7ater and si+t and 7ere a+s* #*ated 7it$ 0i+t$.

T$e tria+ #*rt disissed t$e #*/+aint $*+ding t$at t$ere #*+d be n* asi1de+i#t be#ase t$e de0endant 7as n*t

gi+ty *0 any 0a+t *r neg+igen#e, and be#ase t$ere 7as a /re1e6isting #*ntra#ta+ re+ati*n bet7een t$e -yias

and de0endant MMPC.

T$e -yias a//ea+ed t* t$e C*rt *0 A//ea+s, $*7ever, t$e +atter a00ired t$e =dgent *0 disissa+. Hen#e t$e

instant /etiti*n.

ISSUE: >ON MMPC brea#$ed its #*ntra#t 7it$ /etiti*ners9 *r, a+ternative+y, 7$et$er /rivate res/*ndent 7as gi+ty

*0 a neg+igent a#t 7$i#$ #*nstitted a asi1de+i#t

HELD: N* brea#$. N* t*rt.On isse *0 ?REACH *0 #*ntra#t@ A+t$*g$ a /re1e6isting #*ntra#ta+ re+ati*n bet7een t$e /arties d*es n*t

/re#+de t$e e6isten#e *0 a culpa aquiliana, >e 0ind n* reas*n t* disregard t$e res/*ndent<s C*rt 0inding t$at

t$ere 7as n* neg+igen#e.

Art. &5. >$*ever by a#t *r *issi*n #ases daage t* an*t$er, t$ere being 0a+t *r neg+igen#e, is *b+iged t* /ay

0*r t$e daage d*ne. Such fault or negligence, if there is no pre-existing contractual relation between the

parties, is called a quasi-delict.

In t$is #ase, it $as been estab+is$ed t$at t$e -yias and t$e MMPC entered int* a #*ntra#t entit+ed B3eed *0 -a+e

and Certi0i#ate *0 Per/eta+ CareB T$at agreeent g*verned t$e re+ati*ns *0 t$e /arties and de0ined t$eir

res/e#tive rig$ts and *b+igati*ns. Hen#e, $ad t$ere been a#ta+ neg+igen#e *n t$e /art *0 t$e Mani+a Me*ria+ Par2

Ceetery, In#., it 7*+d be $e+d +iab+e n*t 0*r a quasi-delict *rculpa aquiliana, bt 0*r culpa contractual as

/r*vided by Arti#+e &&4 *0 t$e Civi+ C*de.

T$ere 7as n* sti/+ati*n in t$e 3eed *0 -a+e and Certi0i#ate *0 Per/eta+ Care and in t$e R+es and Reg+ati*ns *0t$e Mani+a Me*ria+ Par2 Ceetery, In#. t$at t$e va+t 7*+d be 7ater/r**0. Private res/*ndent<s 7itness, Mr.

3e6ter Hes#$2e+, e6/+ained t$at t$e ter Bsea+edB eant B#+*sed.B On t$e *t$er $and, t$e 7*rd Bsea+B is de0ined

as . . . any *0 vari*s #+*sres *r 0astenings . . . t$at #ann*t be */ened 7it$*t r/tre and t$at serve as a #$e#2

against ta/ering *r nat$*ri!ed */ening.B T$e eaning t$at $as been given by /rivate res/*ndent t* t$e 7*rd

#*n0*rs 7it$ t$e #ited di#ti*nary de0initi*n. M*re*ver, it is a+s* ite #+ear t$at Bsea+edB #ann*t be eated 7it$

B7ater/r**0B. >e++ sett+ed is t$e r+e t$at 7$en t$e ters *0 t$e #*ntra#t are #+ear and +eave n* d*bt as t* t$e

intenti*n *0 t$e #*ntra#ting /arties, t$en t$e +itera+ eaning *0 t$e sti/+ati*n s$a++ #*ntr*+. C*ntra#ts s$*+d be

inter/reted a##*rding t* t$eir +itera+ eaning and s$*+d n*t be inter/reted bey*nd t$eir *bvi*s intendent.



On isse *0 NEGLIGENCE@

T$e +a7 de0ines neg+igen#e as t$e B*issi*n *0 t$at di+igen#e 7$i#$ is reired by t$e natre *0 t$e *b+igati*n and

#*rres/*nds 7it$ t$e #ir#stan#es *0 t$e /ers*ns, *0 t$e tie and *0 t$e /+a#e.B In t$e absen#e *0 sti/+ati*n *r

+ega+ /r*visi*n /r*viding t$e #*ntrary, t$e di+igen#e t* be *bserved in t$e /er0*ran#e *0 t$e *b+igati*n is t$at

7$i#$ is e6/e#ted *0 a g**d 0at$er *0 a 0ai+y.

T$e #ir#stan#es srr*nding t$e #*issi*n *0 t$e assai+ed a#t b*ring *0 t$e $*+e negate the allegation of

negligence. T$e reas*n 0*r t$e a#t 7as e6/+ained by Henry D+*res, Interent D*rean, 7$* said t$at@ A day be0*re

)an -yia 7as bried *r /ers*nne+ dg a grave. A0ter digging t$e ne6t *rning a va+t 7as ta2en and /+a#ed in

t$e grave and 7$en t$e va+t 7as /+a#ed *n t$e grave a $*+e 7as /+a#ed *n t$e va+t s* t$at 7ater #*+d #*e

int* t$e va+t be#ase it was raining heavily t$en be#ase t$e va+t $as n* $*+e t$e va+t 7i++ 0+*at and t$e grave

7*+d be 0i++ed 7it$ 7ater and t$e digging 7*+d #aved in and t$e eart$, t$e eart$ 7*+d (si#" #aved in and 0i++ /

t$e grave.

E6#e/t 0*r t$e 0*rean<s */ini*n t$at t$e #*n#rete va+t ay 0+*at s$*+d t$ere be a $eavy rain0a++, 0r* t$e

ab*ve1enti*ned e6/+anati*n, /rivate res/*ndent $as e6er#ised t$e di+igen#e *0 a g**d 0at$er *0 a 0ai+y in

/reventing t$e a##+ati*n *0 7ater inside t$e va+t 7$i#$ 7*+d $ave res+ted in t$e #aving in *0 eart$ ar*nd

t$e grave 0i++ing t$e sae 7it$ eart$.

T$s, 0inding n* eviden#e *0 neg+igen#e *n t$e /art *0 /rivate res/*ndent, >e 0ind n* reas*n t* a7ard daages in

0av*r *0 /etiti*ners.

ADDIRME3 in toto t$e de#isi*n *0 t$e res/*ndent C*rt *0 A//ea+s

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