Food Terminal v. Hon. Reynaldo B. Daway

Summary

FTI and TAO entered a storage contract in 1984 for export onions. An ammonia leak damaged the goods, leading to a damages suit. After multiple appeals, the Supreme Court awarded TAO P4,034,173.00 plus interest totaling P7,194,453.60. When TAO demanded full payment, FTI disputed the computation and paid only P7,148,433.72. TAO accepted this partial payment but filed for execution of the balance. The Supreme Court dismissed FTI's challenge, ruling under Civil Code Article 1248 that creditors cannot be compelled to accept partial payments, and TAO was justified in refusing the lesser amount initially. The case establishes that partial payment does not extinguish the full obligation absent creditor's express agreement, and factual determinations by lower courts are generally not reviewable by the Supreme Court on certiorari.