Case Digest (G.R. No. L-4440)
Facts:
- Parties Involved: Plaintiffs-appellees Bunge Corporation and Universal Commercial Agencies; Defendants-appellants Elena Camenforte & Company, trading as Visayan Products Company, et al.
- Date & Location: Contract entered on October 22, 1947, in Cebu City.
- Contract Details: Visayan Products Company agreed to sell 500 long tons of merchantable Philippine copra to Bunge Corporation at $188.80 per ton, less 1% brokerage, C & F Pacific Coast, U.S.A.
- Delivery Period: Copra to be shipped in November or December 1947 to San Francisco, California.
- Non-Delivery Claim: Bunge Corporation claimed damages amounting to P180,000 due to non-delivery of copra despite repeated demands.
- Defendants' Defense: Denial of contract existence, claiming Vicente Kho lacked authority; Kho admitted transaction but cited force majeure due to copra destruction by a storm.
- Lower Court Ruling: In favor of plaintiffs, ordering Elena Camenforte & Company to pay P79,744 plus interest and costs, with co-defendants liable in case of insolvency.
- Appeal: Defendants appealed, focusing on the force majeure defense.
Issue:
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Ruling:
- Supreme Court Decision: Affirmed the lower court's decision, holding the defendants liable for damages amo...(Unlock)
Ratio:
- Generic Obligation: The contract involved generic Philippine copra, not a specific lot.
- Principle Applied: "Genus nunquam perit" (genus never perishes) – obligation to deliver a generic item is not extinguished by the loss of a specific lot.
- Force Majeure Argument: Rejected as the destroyed copra was not specifically contemplated in the contract. The vendor could source copra from any part of the Philippines.
- Contract Discrepancy: One-day difference between contracts with El Dorado Oil Works and Visayan Products Company was nomin...continue reading
Case Digest (G.R. No. L-4440)
Facts:
In the case of Bunge Corporation and Universal Commercial Agencies (plaintiffs-appellees) versus Elena Camenforte & Company, trading under the name Visayan Products Company, et al. (defendants-appellants), the dispute arose from a contract of sale entered into on October 22, 1947, in Cebu City. The contract stipulated that Visayan Products Company would sell 500 long tons of merchantable Philippine copra to Bunge Corporation at $188.80 per ton, less 1% brokerage, C & F Pacific Coast, U.S.A. The copra was to be shipped during November or December 1947 to San Francisco, California. Despite repeated demands, the vendor failed to deliver the copra within the agreed period. Consequently, Bunge Corporation, having already sold the copra to El Dorado Oil Works, claimed damages amounting to P180,000 due to the vendor's non-fulfillment. The defendants, except Vicente Kho, denied the existence of the contract, arguing that Kho lacked authority to bind the company. Kho admitted the transaction but claimed that the copra was destroyed by a storm, constituting force majeure. The lower court r...