Xentrex Automotive v. Court of Appeals

Summary

This case involved a breach of contract dispute between car dealer Xentrex Automotive Inc. and buyers Mac-Arthur and Gertrudes Samson over a 1991 Nissan Sentra. After accepting P250,000.00 in payments and pulling out a specific unit, the dealer sold the car to another buyer without the original buyers' knowledge. The Supreme Court affirmed that a perfected contract of sale existed under Article 1475 of the Civil Code, as there was meeting of minds on the object and price. However, the Court modified the damages award, deleting exemplary and nominal damages while reducing moral damages to P10,000.00. The case established that acceptance of substantial deposit payments and allocation of specific vehicle units creates binding contractual obligations, and breach results in liability for actual damages and reimbursement.