Professional Documents
Culture Documents
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* FIRST DIVISION.
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Antecedents
Spouses Quirino V. Dela Cruz and Gloria Dela Cruz,
petitioners herein, operated the Barangay Agricultural
Supply, an agricultural supply store in Aliaga, Nueva Ecija
engaged in the distribution and sale of fertilizers and
agricultural
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1 Article 1370, Civil Code.
2 Article 1371, Civil Code.
3 Rollo, pp. 45-52; penned by Associate Justice Andres B. Reyes, Jr.
(later Presiding Justice), and concurred in by Associate Justice Eugenio
S. Labitoria (retired) and Associate Justice Regalado E. Maambong
(retired/deceased).
4 Records, Volume I, pp. 413-416.
5 Rollo, p. 92.
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Ruling
The appeal has no merit.
I.
Parties entered into a creditor-debtor relationship
The petitioners did not deny that Gloria applied with
PPI for a credit line of P200,000.00; and that Gloria signed
up for the SCS Program of PPI. The principal issue they
now raise is whether the two transaction documents signed
by Gloria expressed the intent of the parties to establish a
creditordebtor relationship between them. The resolution of
the issue is necessary to resolve the corollary issue of
whether the petitioners were liable to PPI for the value of
the fertilizers and agricultural chemical products delivered
to Gloria, and, if so, by how much.
It is apparent, however, that the petitioners are focusing
on the evidentiary value of Exhibit V, the statement of
account showing that Gloria was liable in the total amount
of P240,355.10 as of July 9, 1985, and are in the process
avoiding the pivotal issue concerning the nature of the
contract between them and PPI. Nonetheless, the issue of
liability sprang from the terms of the contractual
documents Gloria had signed. For them to question the
amount of their liabilities without explaining why they
should not be held liable veritably constituted their tacit
admission of the existence of the loan but assailing only
how much they should repay to PPI.
The petitioners aver that in a surprising turn of events,
when it appeared that no further collection could be had,
[PPI] unilaterally and arbitrarily converted and charged its
receivables from the farmers-participants against
petitioners regular credit line, and PPI thereafter sent the
demand letters to Gloria.33 Considering that the documents
signed by
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33 Rollo, p. 12.
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en_______________
42 Manila Trading & Supply Co. v. City of Manila, 105 Phil. 581, 586 (1959).
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639.
62 G.R. No. 155830, August 15, 2012, 678 SCRA 399.
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Castro,
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