Continental Cement Corporation v. Asea Brown Boveri

Summary

Continental Cement Corporation hired ABB to repair its kiln motor but ABB failed despite three attempts, causing operational disruptions. CCC sued for over P10 million in damages. The trial court awarded substantial damages, but the Court of Appeals dismissed the case based on contractual limitations. The Supreme Court reversed, holding that exculpatory clauses in unaccepted general conditions are not binding. However, it limited recovery to contractual penalties of P129,329.75 for the 131-day delay, rejecting claims for production losses and other consequential damages due to insufficient proof and lack of foreseeability. The decision emphasizes that actual damages require competent proof and reasonable certainty, and consequential damages must be reasonably foreseeable at contract formation. The case demonstrates the balance between contractual liability and the requirement for adequate evidence in damage claims.