Case Digest (G.R. No. 1598)
Facts:
- Jose Palacios, manager of Sociedad de Electricidad en Comandita, sued the Municipality of Cavite.
- A contract was signed on November 11, 1901, for public lighting using electricity.
- The contract required the installation of 200 incandescent lamps, with the municipality responsible for payment and maintenance.
- Payment terms included an initial payment and two subsequent payments, with ownership of the lamps transferring to the municipality after full payment.
- The municipality was to obtain necessary permissions from residents for installation.
- By October 8, 1902, Palacios filed a complaint, claiming the municipality did not allow the installation of 130 remaining lamps.
- The municipality cited lack of funds as the reason for not proceeding with the installation.
- The lower court ruled in favor of Palacios on September 5, 1903, ordering the municipality to pay unpaid installments and deliver materials, declaring the contract rescinded.
- The municipality's motion for a new trial was denied, leading to an appeal.
Issue:
- (Unlock)
Ruling:
- Yes, the Municipality of Cavite violated the contract by refusing to allow the installation of the remaining lamps.
- Yes, the penalty clause in the contract is enforceable due to the municipality's noncompliance.
- The court upheld the lower court's dec...(Unlock)
Ratio:
- The Supreme Court determined that the Municipality of Cavite's refusal to permit the installation of the remaining lamps was a clear contract violation.
- The court stated that lack of funds was not a valid excuse for noncompliance, as the contract clearly defined both parties' obligations.
- Article 1152 of the Civil Code was referenced, indicating that a penal clause substitutes indemnity for damages in case of nonful...continue reading
Case Digest (G.R. No. 1598)
Facts:
The case involves Jose Palacios, the manager of the Sociedad de Electricidad en Comandita, as the plaintiff and appellee, against the Municipality of Cavite, the defendant and appellant. The events leading to the case began on November 11, 1901, when Zacarias Fortich, the municipal president of Cavite, and Jose Palacios executed a contract for public lighting in the municipality using electricity. The contract stipulated that the Sociedad de Electricidad would install 200 incandescent lamps at designated locations, with the municipality agreeing to pay for the installation and maintenance of these lamps. The payment terms included an initial payment upon signing, followed by two additional payments, and the municipality would own the lamps after full payment.
The contract also included provisions for the municipality to obtain necessary permissions from residents for the installation, and it specified the responsibilities of both parties regarding maintenance and repairs. However, by October 8, 1902, Palacios filed a complaint against the municipality, claiming that it had failed to allow the installation of the remaining 130 lamps, despite the company being prepared to fulfill the contract. The municipality argued that it lacked sufficient funds to proceed with the installation, which led to the refusal to allow the additional lamps.
The lower court ruled in favor of Palacios on September 5, 1903, ordering the municipality to pay for the unpaid installments and to deliver the ma...