Case Summary (G.R. No. 21924)
Relevant Facts
On June 27, 1919, Cuaycong and Tongoy executed a written agreement acknowledging receipt of ₱6,000 from Sing Juco as an advance payment for 1,000 piculs of sugar. The agreement stipulated that the sugar was to be delivered on or before March 1, 1920. Mariano Ramos served as a guarantor for the repayment of the advance should Cuaycong and Tongoy default on their commitments. A crucial aspect of the contract included a clause setting forth that upon failure to deliver, the defendants would return the advance with interest at a rate of 8% per annum, along with additional expenses and attorney fees incurred by the plaintiff.
Contractual Clauses and Dispute
The plaintiff contended that the detrimental clauses regarding the obligation to pay additional fees were included without his knowledge and thereby misrepresented the actual agreement between the parties. However, the lower court ruled against this position, citing a lack of evidence to support the plaintiff's claims. The defendants explained that competitive dynamics in the sugar market and previous commitments led them to doubt their capability to fulfill the contract. Despite these concerns, the plaintiff insisted on the execution of the contract, acknowledging he would accept a return of the advance in case of non-delivery.
Tender and Acceptance of Payment
The defendants later attempted to repay the amount advanced but faced a refusal from the plaintiff to accept the payment. Subsequently, they deposited the ₱6,500 with the clerk of the Court of First Instance as a further demonstration of their intent to fulfill their obligation. Notably, after the action was filed, the plaintiff unconditionally withdrew the deposited amount, which effectively demonstrated his acceptance of the repudiation of t
...continue readingCase Syllabus (G.R. No. 21924)
Case Citation
- Citation: 46 Phil. 81
- G.R. No.: 21924
- Date of Decision: September 11, 1924
Parties Involved
- Plaintiff: Sing Juco
- Defendants: Benjamin Cuaycong, Agaton Tongoy, Mariano Ramos
Background of the Case
- The case arises from an appeal concerning a judgment from the Court of First Instance of Iloilo.
- The plaintiff sought damages amounting to P15,000, claiming breach of contract regarding the sale of 1,000 piculs of sugar.
Contractual Agreement
- On June 27, 1919, defendants Cuaycong and Tongoy executed a written agreement acknowledging receipt of P6,000 as an advance payment for the sugar.
- The agreement stipulated that the sugar was to be delivered by March 1, 1920.
- Mariano Ramos acted as a guarantor, promising to repay the P6,000 with 8% interest if the other defendants failed to deliver the sugar.
Key Contractual Clauses
- The contract included specific clauses addressing the failure to deliver the sugar:
- Clause on Payment: Should the defendants fail to deliver, they would owe the plaintiff not only the P6,000 but also 8% interest annually.
- Guarantee by Ramos: Ramos covenanted to pay the plaintiff the total amount due if the primary obligors failed to meet their obligations, includ