- Petitioner
- Virgilio S. David
- Respondent
- Misamis Occidental Ii Electric Cooperative
- Citation
- G.R. No. 194785
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Mendoza, J.
- Decided
- July 11, 2012
Summary
This case involves a contractual dispute between electrical equipment supplier Virgilio David and electric cooperative MOELCI over a 10 MVA power transformer worth P5,200,000. The RTC found a perfected contract but no consummated delivery, while the CA ruled it was merely a contract to sell with no delivery proven. The Supreme Court reversed, holding that a contract of sale was perfected when MOELCI officials signed 'conforme' to David's proposal, supported by a board resolution and multiple negotiations. The Court applied Article 1523 of the Civil Code, ruling that delivery to carrier William Lines constituted delivery to MOELCI since the buyer agreed to pay freight charges. However, the Court reduced the unconscionable 24% interest rate to 12% per annum, demonstrating judicial intervention in excessive contractual terms while upholding the validity of commercial agreements between private parties.