Solar Harvest v. Davao Corrugated Carton Corporation

Summary

Solar Harvest sued Davao Corrugated Carton Corporation for reimbursement of US$40,150.00 paid for corrugated carton boxes allegedly never received. Respondent claimed boxes were manufactured but petitioner failed to pick them up as agreed. The Supreme Court analyzed this as a contract rescission case under Civil Code Article 1191, requiring proof of breach and prior demand for performance. The Court found petitioner failed to establish a valid cause of action as no proper demand was made for delivery and evidence showed respondent had actually manufactured the boxes. The case demonstrates the requirements for contract rescission in reciprocal obligations, emphasizing the necessity of demand before claiming breach. The Court affirmed dismissal of both complaint and counterclaims while giving petitioner 30 days to remove the boxes from respondent's premises or forfeit them.