Facts:

• The case involves Sun Brothers Appliances, Inc. v. Damaso P. Perez.
• A conditional sale agreement was executed on December 6, 1958, in Manila.
• Sun Brothers sold an Admiral Air Conditioner, Model 100-23-1 HP, for ₱1,678.00.
• The defendant, Damaso P. Perez, made a down payment of ₱274.00 on the same day.
• The air conditioner was installed at the defendant's office in Lucena, Quezon on December 14, 1958.
• The air conditioner was destroyed by fire on December 28, 1958.
• The defendant claimed the destruction was due to force majeure and argued against paying the remaining balance of ₱1,404.00.
• The lower court ruled in favor of the plaintiff, ordering the defendant to pay the outstanding balance, interest, and attorney's fees.
• The case was appealed to the Supreme Court to address the buyer's liability in cases of loss due to fortuitous events.

Issue:

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Ruling:

• The Supreme Court ruled in favor of the plaintiff, affirming the lower court's decision.
• The court concluded that the defendant is liable for the payment of the air conditioner, despite its destruction by fire.
• The stipulation in the conditional sale agreement hold...(Unlock)

Ratio:

• The court's rationale was based on legal principles governing conditional sales.
• The agreement specified that title remained with the vendor until full payment, while the risk of loss was transferred to the buyer.
• Citing Article 1174 of the Civil Code, the court affirmed that parties can stipulate the assignment of risk.
• The phrase "for any cause" was interpreted to include fortuitous events, validating the buyer's liability for loss due to fire....continue reading