Ravago Equipment Rentals v. Court of Appeals

Summary

This civil case involved a lease contract dispute between Ravago Equipment Rentals and Alcolex Corporation over a Caterpillar generator. Ravago claimed P646,969.00 in unpaid rentals and overtime charges. Alcolex challenged the contract's enforceability, arguing the signatory lacked corporate authority. The Supreme Court affirmed the Court of Appeals, ruling that while the contract was enforceable through implied ratification (Alcolex used the generator), Ravago failed to prove the overtime charges by preponderance of evidence. The case establishes important precedents on contract ratification under Article 1317 of the Civil Code and the evidentiary burden for proving contractual claims. The decision emphasizes that failure to respond to demand letters does not constitute admission of liability absent special circumstances.