Renato C. Salvador v. Court of Appeals

Summary

This case involves a construction contract dispute where contractor Salvador sued property owners for additional work payments and price escalations totaling over P1 million. Salvador had contracted to develop a memorial park but stopped work claiming non-payment of demanded additional costs. The Supreme Court ruled Salvador's claims invalid under Civil Code Article 1724, which requires written authorization for additional work and agreed pricing. The escalation clause required specification of particular materials with price increases, which Salvador failed to provide. While Salvador breached contract by stopping work, respondents also breached by failing to secure required building permits. The Court found both parties at fault and reinstated the trial court's dismissal of all claims, emphasizing that contracts are binding between parties and must be performed according to their terms.