T a yl orv s.UyTi e ngPi a o | G. R.No.L1 61 09 | Oc t obe r2 ,1 92 2 | Pone nt e :St r e et ,J. Nat ur eofCase: Pot es t at i v ec ondi t i on D.T ay l or( pl ai nt i ffappel l ant ) Pet i t i oner s ( s ) :M. Re s ponde nt ( s ) :UyTi e n gPi a oa n dT a nLi u a n( d o i n gbu s i n e s su n de rt h efi r mn a meT me a nL i u a n&Co mp mp a n y ) * UyTi engPi ao( def e nda nt appel l a nt ) SUMMARY: Pl a i n t i ffc on t r ac t e dhi sse vi c est oT anLi u anan dCo. ,assu pe r i nt end entofanoi lf a ct or yt owhi c ht hel at t erwi l le st ab l i s h.Amon gt h es t i p ul a t i on s i nt hecont r ac ti st hec l aus ewher ei ndef endantc anc anc elt hecont r ac twi t hpl ai nt i ffi ft hemac hi ner yt obei ns t al l edi nt hes ai df ac t or yf ai l s ,f oran yr eas on,t o a r r i v ei nMa Ma ni l awi t hi nape r i odo f6mo mo nt h s.Def en dan ta v ai l edoft hi sop t i ont oca nc els i n cesa i dma ch i n er ydi dno ti nf a cta r r i v e.Pl ai n t i ffno wc omest ot he c our ts t a t i ngt ha ts t i p ual t i oni si l l e ga la sc on t empl a t edi nAr t i c l es12 56a nd1 119o ft heCi v i lCod e.Co ur td ec i dedi nf a v oro ft hed ef end ants t at i ngt ha ta c ond i t i onwh wh i c hi sf a cu l t at i v ean dr es ol u t or yatt hes amet i mei sv al i dev ent h ought hec on di t i oni sma ma det ode pen dup ont hewi l l oft heo bl i g or .
FACTS •a pp eal f r o mt heCFIo ft h ec i t yofMa ni l awh er e i nc ou r t a wa r de dp l ai n t i ffP3 00asda ma ma ge sf orb r e ac ho fc on t r a ct -p l a i n t i ffap pe al sont h eg ou nft h att h ea mo mo un to fd ama ge sawa r d edi si n ad eq ua t e -d ef e nda ntappeal sont h egr oundt hathei sno tl i a bl eatal l •De c emb er1 2,1 91 8— p l a i n t i ffwasc o nt r a ct e da ssu per i n t en de nto fa no i l f ac t or yf o rT anLi u anan dCo . -p er i odoft heco nt r ac twi l l b e2y ear sf r om t hedat eme men t i oned -s a l a r yo fP6 00 / mo nt hf o rt h efi r s ty e ara ndP7 00 / mo nt hont h es e c on dy e ar - wi t hel ec t r i cl i ghtandwat erf ordomes t i ccons umpt i on,andar es i denc et ol i v ei nori nl i eut her eofP60/ mont h •Du r i n gt h et i meo ft h ei ra g r e eme nt ,t h e ma c hi n er yt ob eu s edf o rt h ef a c t o r yh adn oty e tb ee na c qu i r e d,a l t h ou gh1 0 e x pel l e r sh adal r e ad ybe enor d er edf r o m US - amongt hes t i pul at i onsi ns er t edi nt hec ont r ac twasapr o vi s i ont ot hef ol l owi ngeff ec t : oranyr eason,t I ti sunde r s t ooda nda gr e edt h ats ho ul dt hema ch i ne r yt ob ei n st a l l e di nt h es ai df a ct or yf a i l ,f oar r i v ei nt hec i t yofMani l awi t hi na p er i odo fs i xmo mon t hsf r om d at ehe r e of ,t h i sco nt r ac tma yb ec anc el l e db yt h ep ar t yoft hes ec ondp ar tati t sopt i o n,s uc hc an ce l l a t i on ,h o we ve r ,n ott o o c cu rb ef o r et h ee x pi r a t i o no fs u c hs i xmo mo nt h s.
•Th ema ch i n er yf ai l e dt oa r r i v ewi t h i n6mo nt hsf r o mt h emak i n go ft h ec on t r a ct -r e as o na st owh ath ap pe ne di sno ts t i p ul a t e d -h owe v e r ,p r e po nd er a nc eo fe v i d en c es h owst h atd ef e nd an t se i t h erc a nc e l l e dt h eo r d erf o rt h ema c hi n er yo rwe r e u nabl et ofi nanc et hes ai dpr oj ec t( s i nc ei nt hefi r s tmont hsof1 91 9,t heoi l bus i nes snol ongerpr omi s edl ar ger et ur ns ) •J u ne2 8,1 919— a v ai l i ngt h ems el v e so ft h eo pt i o ng i v e ni nt h es t i p ul a t i o n,d ef e nd an t sc ommu ni c a t e di nwr i t i n gt ot h e pl ai nt i fft hef ac tt hatt heydec i dedt or es ci ndt hec ont r ac t ,eff ec t i v eJ une30 •p l a i n t i ffi ns t i t u t e dt h i sac t i ont or e c ov e rd ama ge sf o rP1 3, 0 00( s al a r yan dp er q ui s i t e sd uea ndt ob ec omed ueu nd ert h e c o n t r a c t ) - pl ai nt i ffc ont endst hatdef endant swi l lo nl yha v et her i ghtt or es c i ndt hec ont r ac ti ft hec aus east owh yt hemac hi ner y di dnotar r i v ei snotduet ot hei rf aul tbutuponc i r c ums t anc esbey ondt hei rwi l l orac t - pl ai nt i ffr el i esont hef ol l owi ngar t i c l es : c hi st ot heeffec tt hatt hev al i di t yandf ul fi l l mentofc ont r ac t sc annotbel ef tt ot he Ar t i c l e1 25 6oft heCi v i lCode,whi wi l lofoneoft hec ont r ac t i ngpar t i es ,andt o Ar c hs ay st hatac ondi t i ons hal lbedeemedf ul fi l l edi ft he t i c l e1 11 9,whi obl i gori nt ent i onal l yi mpedesi t sf ul fi l l ment I SSUE( S)+RULI NG WON i ti sl a wf ult oha v east i pul a t i onwhe r e i nt hecondi t i oni sma det ode pe ndupont hewi l loft h eobl i gor— YES ( butnotal lt het i me) 1of2
•t h el a ngu ageoft hec ont r ac t( “ f oran yr eas on” )whi c hg i v esd ef e ndant st her i ghtofc anc el l at i oni sbr oaden ou ght oc ov er anycase oft henonar r i v al oft hemac hi ner y ,duet owhat evercause -l anguageus edi nt hes t i pul at i ons houl dbegi v eneff ec ti ni t sor di nar ysens e,wi t houtt ec hni c al i t yorc i r c umv ent i on •Ar t i c l e1 25 6oft heCi v i lCode c r eat esnoi mpedi mentt ot hes t i pul at i oni nac ont r ac tf orper s onals er v i c e o far e sol ut or y c ondi t i on per mi t t i ngt hec anc el l at i onoft hec ont r ac tbyoneoft hepar t i es -Ar t i c l e1256c ont empl at esas i t uat i onwher ei nt hec ont r ac twi l l bev al i donl yi fi t sst i pul at edc ondi t i onsar i s e( ands uc h c ondi t i onsar el ef tt ot hewi l l ofoneoft hepar t i es ) -i nt h ec as eatb ar ,t hec ont r ac ts t i pul at esar es ol ut or yc on di t i on( mea ni ng,upont hehappeni ngofs uc hc on di t i on,t h e c ont r ac twi l l bec anc el l edwhi c hi snotwhatAr t i c l e1256t al k sabout ) •i ti sent i r el yl i c i tt ol eav et hef ul fi l l mentoft hec ont r ac tt ot hewi l lofei t heroft hepar t i esi nt he ne ga t i v ef or m ofr e sc i s si on f ori ns uc hs uppos edc as e,nei t heri st hear t i c l ei nr fi ngednori st her eanyl ac kofequal i t ybet weent heper s onscont r ac t i ng -asl ongast hev al i di t yandt hef ul fi l l mentoft hec ont r ac ti snotl ef tt ot hewi l l ofoneoft hem •t her ei snot hi ngi nAr t i c l e1256whi c hwi l l mak ei tnec es sar yt ogi v eanot hermeani ngt ot hes t i pul at i onoft hepar t i es“ f oran y r e a s o n ” -t oi mp os ea no t he ri nt e r p r e t a t i o n( f o ra nyr e as on noth ul d av i ngi t sor i gi ni nt hewi l lora ct soft hedef endant s)wo c ons t i t ut eanunj us t i fi abl ei n v as i onoft hepo wero ft h epar t i est oes t abl i s ht het er mswhi c ht h eydeem adv i s abl e,a r i ghtwhi c hi sex pr es sedi na r t i c l e1 25 5oft heCi v i lCode an dc o ns t i t u t e so neo ft h emo s tf u nd ame nt a lc on c ep t i o ns ofc ont r ac tr i ghtens hr i nedi nt heCode •Wi t hr e g ar dt oAr t i c l e1 11 9( wher et heobl i gori nt ent i onal l yi mpedest hef ul fi l l mentofac ondi t i onwhi c hwoul dent i t l et he o bl i geet oe x ac tper f or manc ef r om t heobl i gor ;andanas s ump t i onund er l y i ngt hepr o vi s i oni st h att heobl i gorp r e v ent st he o bl i geef r om per f or mi ngs omea ctwhi c ht heobl i g eei sent i t l edt oper f or m asac ondi t i o npr ec edentt ot hee x ac t i o nofwhati s d uet ohi m) ,t heac tt hati scons i der edunwar r ant edandunl a wf ul s houl di n v ol v eabr e ac hoft h ei mpl i edt er msoft hec ont r ac t -t heAr t i c l ec anhav enoappl i c at i ont oane xt er nalc ont i ngenc ywhi c h,l i k et hati nv ol v edi nt hi sc as e,i sl awf ul l ywi t hi n t hec ont r ol oft heobl i gor •acondi t i onwhi c hi sf a c ul t a t i v ea ndr e s ol ut or yma yb ev a l i de v e nt hought hecondi t i oni sma det od epe ndu pont he wi l loft heobl i gor •wi t hr e ga r dt od ama ge s ,CFIc o mmi t t e dn oe r r o ri nr e j e c t i n gt h ep l a i n t i ff ’ sc l a i mf o rda ma ge ss o ug htf o rt h ep er i o d s ubs equentt ot hee xpi r at i onoft hefi r s ts i xmont hs -h owe v er ,i to v er l o ok e dt h ei t e mo fP6 0,wh i c hr ep r es e nt sc o mmu t a t i o no fh ou s er e ntf o rt h emo nt hofJ u ne19 19 -i naddi t i ont oP300awar dedbyt heCFI ,pl ai nt i ffi sent i t l edt oanot herP60
Th ej u d gme nta pp ea l e df r o m wi l lb e modi fiedb ydec l ar i n gt hatt hedef en dan t ss hal lp ayt ot hepl ai nt i fft h es um ofP360, i n s t e ad o fP3 00 ,a sa l l o we db yt h el o we rc o ur t ,a nd a st h usmo di fi e dt h ej u dg me ntwi l lb ea ffir me d wi t hi n t e r e s tf r o m Nov ember4,1919.
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