Mr. Wee Sion Ben v. Semexco/Zest-O Marketing Corporation

Summary

This case involves a contractual dispute over payment for fruit juices. Best Emporium violated the payment terms in the Charge Invoice by issuing a 'pay to cash' check instead of one payable to the corporation as required. The sales representative who received the check encashed it but did not remit payment to the company. When petitioners issued a replacement check, they stopped payment on it. The Supreme Court held that the contract term requiring specific payee designation was binding despite being a contract of adhesion. Under Article 1595(1) of the Civil Code, petitioners wrongfully refused to pay according to contract terms, so their obligation was not extinguished. The Court affirmed liability for the full amount plus interest and attorney's fees as contractually stipulated.