Petitioner
The Philippine Sugar Estates Development Company
Respondent
Antonio Iribar
Citation
G.R. No. 2121
Court
Supreme Court En Banc
Division
En Banc
Ponente
Mapa, J.
Decided
November 15, 1905

Summary

The Philippine Sugar Estates Development Company sued Antonio Iribar to recover 10,500 pesos in rent for a steam launch lease contract covering February 1 to June 30, 1901, at 70 pesos per day. Although the company anchored the launch in Pasig River and kept it available during the entire contract period, Iribar refused to accept delivery, claiming the launch was not as represented. The Supreme Court affirmed the lower court's dismissal of the case, ruling that since no actual delivery occurred, the lease contract was never consummated. Under Civil Code Articles 1124 and 1555, the obligation to pay rent only arises when delivery to the lessee is completed. The Court held that plaintiff could not recover stipulated rent without contract performance, and noted that plaintiff failed to timely pursue proper legal remedies for either contract fulfillment or damages. The case establishes important precedent regarding the relationship between delivery and rent obligations in lease contracts.

Statutes applied

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By Intellegal Editorial Board · November 15, 1905

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