Case Digest (G.R. No. 55665)
Facts:
Delta Motor Corporation v. Eduarda Samson Genuino, et al., G.R. No. 55665, February 08, 1989, Supreme Court Third Division, Cortes, J., writing for the Court.
Delta Motor Corporation (petitioner) is a Philippine corporation that in July 1972 submitted two letter-quotations to Hector S. Genuino on behalf of the Espana Extension Iceplant and Cold Storage (private respondents) offering to sell black iron pipes: one dated July 3, 1972 for 1,200 lengths (P66,000) with staged payments including a 20% downpayment and a promissory note for the balance, and a second dated July 18, 1972 for 150 lengths (P5,400) requiring 50% down and 50% before delivery. Both quotations stated the price would remain firm for thirty days and that delivery was "ex-stock subject to prior sales."
Hector Genuino signed the two letter-quotations (acceptances) on July 17 and July 24, 1972, and on July 28, 1972 the Genuinos paid the downpayments totaling P15,900.00. Thereafter Delta did not deliver the pipes and the Genuinos did not pay further installments nor execute the promissory note called for in the first contract. Delta testified it offered delivery shortly after execution in 1972, but the Genuinos refused because their cold storage construction was unfinished.
On April 15, 1975 the Genuinos asked Delta to deliver the pipes within 30 days and offered to pay the next installments upon notice of readiness to deliver. Delta refused, asserting the quoted prices were subject to 30-day firmness and sending re-quoted prices based on current, much higher market rates. The Genuinos filed suit for specific performance with damages; Delta answered and counterclaimed for rescission under Art. 1191 of the Civil Code. The case was tried as Civil Case No. Q-20120 before the Court of First Instance (CFI) of Rizal, Branch XVIII, Quezon City.
The CFI granted rescission, ordered Delta to refund the P15,900 and assessed attorney’s fees and costs. On appeal the Court of Appeals reversed, directing the Genuinos to make the contractual payments (including execution of the promissory note) ...(Pro-only)
Issues:
- May Delta Motor Corporation validly rescind the two sale contracts for nonperformance under Art. 1191 of the Civil Code given the parties’ conduct and the lapse of time?
- Are the private respondents entitled to specific performance—i.e., compel Delta to deliver the pipes at the original contract terms—despite market price incr...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)