Arturo T. Espejo, Sr. v. Anita · G.R. 188152

Petitioner: Arturo T. Espejo, Sr.
Respondent: Anita N. Ty
Citation: G.R. No. 188152
Court: Supreme Court
Division: Second Division
Ponente: Brion, J.
Decided: January 25, 2012

Summary

Medical Devices International (MDI) and Alabang Medical Center Corporation (AMCC) entered into a contract for medical equipment worth P1.6 million. AMCC claimed MDI failed to deliver complete and functional equipment on time, while MDI argued they fulfilled obligations. AMCC stopped payment on postdated checks after demanding return, but MDI had already encashed four checks worth P720,000. The RTC ordered contract rescission and monetary awards, which the CA affirmed with modifications. The Supreme Court denied MDI's petition, ruling it raised questions of fact requiring evidence review rather than pure questions of law. The Court applied Civil Code Article 1191 on contract rescission due to breach, emphasizing that contracts are law between parties and rescission is warranted when one party violates reciprocal obligations through non-compliance.

Statutes applied

Civil Code, Art. 1191

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By the Intellegal Editorial Board · January 25, 2012

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