Case Digest (LIM YHI LUYA Versus COURT OF APPEALS GR NO. L40258 September 11,1980)

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Case Digest

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?

C. SUPREME COURT DECISION ON THE ISSUE/S CITED:


The decision of the trial court is hereby (1) On the first cause of action, ordering the
respondent to immediately deliver to petitioner the 350 piculs of H-2 sugar or to pay
petitioner the sum of P12,250.00 plus legal rate of interest from November 13, 1970, until
fully paid, giving unto the petitioner the option to choose whether to receive the sugar or to
receive the payment corresponding to the same; (2) On the second cause of action,
ordering the respondent to deliver immediately to the petitioner the 1,000 piculs of export
sugar or to pay the petitioner the sum of P55,000 00 with legal rate of interest from January
20, 1971, but giving the option or choice to the petitioner; (3) With respect to the third cause
of action, ordering the respondent to deliver to the petitioner the 160 piculs of H-3 sugar or
to pay to petitioner the sum of P6,400,00 with legal rate of interest from June 3, 1970, but
the option again belonging to the petitioner; (4) On the fourth cause of action, ordering the
respondent to pay to the petitioner the sum of P60,592.30 with interest at 12% per annum
from the filing of the complaint and to pay attorney’s fees of 25% of the principal obligation,
that is, the sum of P15,148.08; (5) On the fifth and sixth causes of action, ordering the
respondent to pay to the petitioner the sum of P25,000 00 as damages and to pay another
sum of P15,000 00 as attorney’s fees, the said fees referring to the first, second and third
causes of action.

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