- Petitioner
- Vicente Josefa
- Respondent
- Zhandong Trading Corporation
- Citation
- G.R. No. 150903
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Sandoval-Gutierrez, J.
- Decided
- December 8, 2003
Summary
This case involves a commercial dispute where Zhandong Trading Corporation sued Vicente Josefa for payment of hardboards worth P4,558,100.00. Josefa had purchased the boards through intermediary Tan Y. Ching, believing Tan owned them, and paid Tan P4,474,200.00 in full. When Tan's payments to Zhandong bounced, Zhandong sued Josefa directly. The trial court and Court of Appeals ruled for Zhandong based on delivery receipts bearing its name. However, the Supreme Court reversed, finding that the evidence showed Tan actually purchased from Zhandong and resold to Josefa. Since Josefa had no privity of contract with Zhandong and had fully paid Tan, he bore no liability to Zhandong. The Court applied the Civil Code principle that contracts only bind the contracting parties, dismissing the complaint against Josefa.