Case Digest (LIM YHI LUYA Versus COURT OF APPEALS GR NO. L40258 September 11,1980)
Case Digest (LIM YHI LUYA Versus COURT OF APPEALS GR NO. L40258 September 11,1980)
Case Digest (LIM YHI LUYA Versus COURT OF APPEALS GR NO. L40258 September 11,1980)
A. FACTS:
Since 1958, Lim Yhi Luya (Lim) and Hind Sugar Company (Hind) have had business
dealings, with Lim selling sugar to Hind and Hind supplying the company with diesoline,
gasoline, muriatic acid, sulfuric acid, and other supplies and materials ordered on credit. On
November 12, 1970, Lim received a telegram from Hind that said, "Please come tomorrow
morning without fail." The next day, Lim went to Hind, who offered to sell sugar for P37.00
per picul. The parties agreed to buy 4,085 piculs of sugar for P35.00 per picul. Hind
prepared the contract of sale, and one of the specific terms of the contract states that the
term of payment is cash upon signing of the contract. On the same day, and in accordance
with the contract, Lim received four delivery orders totaling 4,085 piculs of sugar sold.
Between November 13, 1970 and January 27, 1971, Hind withdrew a total of 3,735 piculs
from the company warehouse in varying quantities, leaving a balance of 350 piculs
undeliverable.
The issue of payment arose between the parties on January 22, 1971. Lim claimed that
he paid P142,975.00 to company officials on November 13, 1970, and as proof of his
payment, he referred to the contract's stipulation, which stated "Terms: Cash upon signing of
this contract." Hind denied Lim's claim, claiming that the latter never paid for the sugar on
November 13, 1970, or at any time thereafter. Lim was not paid, according to an audit report
or an examination of the company's books.
B. ISSUE/S:
Whether Lim has paid the sum of P142,975.00 which is the purchase price of the 4,085
piculs of sugar covered by the contract of sale between the parties?