BARONS MARKETING CORP v.
CA 1%interest per month until full payment, this request was
Topic: Partial Prestations
PROVISION
Article 1248. Unless there is an express stipulation to that
effect, the creditor cannot be compelled partially to receive the
prestation in which the obligation consists. Neither may the debtor be
required to make partial payments. However, when the debt is in part
liquidated and in part unliquidated, the creditor may demand and the
debtor may affect the payment of the former without waiting for the
liquidation of the latter.
FACTS:
August 31, 1973. Phelps Dodge appointed Barons Marketing as
one of its dealers of electrical wires and cables effective Sept. 1,
1973. Defendant was given 60 days credit for its purchases of
Phelps Dodges electrical products
Barons Marketing purchased, on credit, from Phelps Dodges
electrical wires and cable in the total amount of P4,102,483.30.
This was then sold to MERALCO, Baron Mktg being the
accredited supplier of the electrical requirements of MERALCO.
Under the sales invoices issued by Phelps Dodge to Barons
Mktg for the subject purchases, it is stipulated that interest at
12% on the amount of attys fees and collection. Barons Mktg
paid P300,000 out of its total purchases leaving an unpaid
account of P3,802,478.20. Phelps Dodge wrote Barons Mktg
demanding payment of its outstanding obligations due Phelps
Dodge. Baron Mktg responded by requesting if it could pay its
outstanding account in monthly installments of P500,000 plus
rejected and Phelps Dodge demanded full payment
Phelps Dodge then filed a complaint before the Pasig Trial Court
for the recovery of P3,802,478.20 and it also prayed to be
awarded with attorneys fee at the rate of 25% of the amount
demanded, exemplary damages in the amount of P100,000, the
expenses of litigation and the costs of suit.
The court ruled in favor of Phelps Dodge with the exemplary
damages of P10,000 and recovery of P3,108,000
Both parties appealed. Phelps Dodge claimed that court should
have awarded the sum of P3,802,478.20. It also said that the
amount awarded was a result of a typographical error.
Barons Mktg claimed that Phelps Dodges claim for damages is a
result of creditors abuse and it also claimed that Phelps Dodge
failed to prove its cause of action against it.
CoA ruled in favor of Phelps Dodge with the correct amount but
only with the 5% for the Attys fee. No costs.
Barons Mktg then alleged that the Coa erred its decision
ISSUE: W/ON private respondent is guilty of abuse of right
HELD:
No. a creditor cannot be considered in delay if he refuses to
accept partial performance because, unless otherwise
provided by law or stipulated by the parties, a creditor cannot
be compelled to accept partial performance
However, if good faith necessitates acceptance or if the
creditor abuses his right in not accepting, the creditor will
incur in delay if he does not accept such partial performance.