G.R. No. L-11827 July 31, 1961 GAITE vs.

FONACIER FACTS: Fonacier, owner of 11 iron lode mineral claims (Dawahan Group) in Camarines Norte, constituted a "Deed of Assi nment!, and appointed Gaite as his true and lawful attorne"#in#fact to enter into a contract for its e$ploration and development on a ro"alt" %asis. Gaite e$ecuted a eneral assi nment to the &arap 'ron (ines owned solel" %" him. )owever, Fonacier decided to revo*e the authorit" ranted which he assented. +aid revocation included the transfer to Fonacier the ri hts and interests over the ",-,... tons of iron ore, more or less" alread" e$tracted for a certain consideration. A %alance has to %e paid. /o secure it, Fonacier delivered to Gaite a suret" %ond. 0hen it e$pired, no pa"ment had %een made %" Fonacier on the theor" that the" had lost ri ht to ma*e use of the period when their %ond e$pired. Gaite filed a complaint in court for its pa"ment. /he lower court ruled the o%li ation was one with a term and that the o%li ation %ecame due and demanda%le under Article 1112 of the New Civil Code. )ence, the defendants 3ointl" filed an appeal. ISSUES: 1. 04N the lower court erred in holdin that the o%li ation of Fonacier to pa" Gaite is one with a period or term and that the term has alread" e$pired. ,. 04N the lower court erred in not holdin that there were lesser tons of iron ore in the stoc*piles sold to Fonacier. HEL : 4n 'ssue No. 1 No. 'f the suspensive condition does not ta*e place, the parties would stand as if the conditional o%li ation had never e$isted. /he parties did not intend such state. /he words of the contract e$pressed that o%li ation to pa" and intended Gaite to %e paid.

/he sale of the ore to Fonacier was a sale on credit, not an aleator" contract. For their failure to renew the %ond, the appellant have forfeited the ri ht to compel Gaite to wait for the sale of the ore %efore receivin pa"ment of the %alance. 5nder para raphs , and 6 of Article 1112 of the Civil Code of the 7hilippines, the de%tor shall lose ever" ri ht to ma*e use of the period8 0hen he does not furnish to the creditor the uaranties or securities which he has promised. 0hen %" his own acts he has impaired said uaranties or securities after their esta%lishment, and when throu h fortuitous event the" disappear, unless he immediatel" ives new ones e9uall" satisfactor". Gaite:s acceptance of the suret" compan":s %ond with full *nowled e it would automaticall" e$pire within a "ear was not a waiver of its renewal after the e$piration date. /he %alance %ecame due and pa"a%le thereafter. 4n 'ssue No. , No. /his is a case of a sale of a specific mass of fun i%le oods for a sin le price or a lump sum. /he 9uantit" of ",-,... tons of iron ore, more or less," stated in the contract is a mere estimate %" the parties. A reasona%le percenta e of error should %e allowed %ecause neither of the parties had actuall" measured of wei hed the mass. 'n addition, no provision was made in their contract for the measurin or wei hin of the ore sold in order to complete or perfect the sale, nor was the price a reed upon %" the parties %ased upon an" such measurement. 0hen Gaite complied with his promise to deliver, the appellants, in turn, are %ound to pa" the lump price.