Title
Yutivo Sons Hardware Co. vs. Confesor
Case
G.R. No. 42701
Decision Date
Mar 6, 1937
Defendant constructed a house using materials purchased on credit from plaintiff, denied liability, claiming architect was responsible. Court ruled defendant liable for unpaid balance, affirming creditor-debtor relationship based on partial payments and lack of supporting evidence.

Case Summary (G.R. No. 127761)

Factual Background

The plaintiff supplied construction materials valued at P7,151.18 on credit for the defendant’s house. Despite the defendant's partial payment amounting to P5,750.48, a balance of P1,400.70 remained unpaid. The plaintiff claims that various demands for payment were made, which were ignored by the defendant. The defendant, in his response to the complaint, denied the allegations and asserted that no business transaction had occurred.

Proceedings in the Lower Court

After a thorough hearing, the trial court ruled in favor of the plaintiff, ordering the defendant to pay the remaining balance of P1,400.70, along with legal interest from the date of filing until full payment, plus the costs of the suit. The defendant subsequently appealed this ruling, arguing that the court erred in its findings regarding the existence of a business transaction and the legitimacy of the unpaid amount.

Evidence Presented

During the proceedings, it was shown that the defendant, due to insufficient funds, sought assistance from architect Fernando Ocampo to obtain credit from the plaintiff for construction materials. The plaintiff’s manager, Yu Khe Tay, opened a credit line for materials not exceeding P2,000, based on the defendant's recognition as a public official. The materials were subsequently delivered, though it was established that the defendant meticulously managed his credit to not exceed the initial limit.

Payments Made by the Defendant

From February 1929 until July 1931, the plaintiff regularly sent monthly statements to the defendant, who made several payments ranging from P200 to P1,711.38. Total payments during this period amounted to P5,750.48. The defendant attempted to counter this evidence with his own testimony, claiming that architect Ocampo was responsible for the material expenses due to a contract he had purportedly entered into.

Analysis of Contracts and Responsibilities

The defendant relied on a contract (Exhibit 1) that was presented but not proven to be fully executed, as the defendant failed to produce supplementary documents that could have clarified the contested terms. The court found that the testimony of architect Ocampo contradicted the defendant’s claims, notably that the construction was to be managed by the defendant himself, as e

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