Case Digest (G.R. No. 9935)
Facts:
Yu Tek & Co. v. Basilio Gonzalez, G.R. No. 9935. February 01, 1915, the Supreme Court En Banc, Trent, J., writing for the Court. Plaintiff Yu Tek & Co. sued defendant Basilio Gonzalez on a written contract (Exhibit A). The contract acknowledged receipt by Gonzalez of P3,000 and obligated him to deliver 600 piculs of sugar of the first and second grades within three months from January 1 to March 31, 1912, at a place in the municipality of Santa Rosa designated by the plaintiff; it further provided that should Gonzalez fail to deliver within the period the contract would be rescinded and he would return the P3,000 and pay P1,200 "by way of indemnity for loss and damages."At trial the plaintiff proved non-delivery and inability to recover the P3,000; it sought judgment for the P3,000 and the additional P1,200 under the contract. The trial court rendered judgment for the P3,000 only, denying recovery of the P1,200. Both parties appealed the trial court's judgment to the Supreme Court.
On appeal Gonzalez argued (1) that parol evidence should have been admitted to show the parties intended the sugar to be produced from his plantation and that crop failure excused performance, and (2) that if the contract were a perfected sale the loss of his crop discharged his obligation. Yu Tek & Co. appealed the denial of the P1,200, contending the clause was liquidated damages. The Supreme Court reviewed the written contract, the trial court's findings, and relevant precedents and statutes to resolve whether the c...(Subscriber-Only)
Issues:
- Is parol evidence admissible to show that the parties intended the sugar to be obtained exclusively from the defendant’s plantation, thereby adding a contemporaneous condition to the written contract?
- Was the contract a perfected sale so that loss of the defendant’s crop excused his obligation under Arts. 1450, 1452, 1096 and 1182 of the Civil Code?
- Is the contractual provision for return of P3,000 plus payment of P1,200 a valid stipulation for liquidated ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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