Uniwide Sales v. Mirafuente & Ng

Summary

Uniwide Sales, Inc. engaged Mirafuente & Ng, Inc. for architectural design services of a proposed mall for P2.5 million under a December 13, 1993 agreement. After respondent substantially completed the work and submitted final architectural plans in August 1995, petitioner terminated the contract on August 22, 1995, refusing to pay P837,500 for completed phases. The Supreme Court affirmed lower courts' decisions ordering payment, finding that respondent had fulfilled its contractual obligations before termination. The Court rejected petitioner's claims of verbal deadlines and prior termination, noting that construction had already begun using respondent's plans. The decision emphasized that terminating a contract after the other party has performed violates the Civil Code requirement of good faith in contractual performance, establishing important precedent for architectural service contracts and post-performance termination disputes.