J. M. Po Pauco v. Dolores Siguenza · G.R. 25249

Petitioner: J. M. Po Pauco
Respondent: Dolores Siguenza
Citation: G.R. No. 25249
Court: Supreme Court En Banc
Division: En Banc
Ponente: Street, J.
Decided: September 25, 1926

Summary

A capitalist-broker sued to foreclose a chattel mortgage securing agricultural advances, but defendants breached their obligation to deliver the entire sugar harvest. The Supreme Court upheld contract resolution based on defendants' bad faith retention of over 1,000 piculs of sugar, applying Civil Code Article 1124. However, the Court corrected the monetary award, ruling that contract resolution abrogates all stipulations including penalty interest and attorney's fees. The plaintiff was limited to restitution of amounts advanced with legal interest only, establishing the principle that parties seeking resolution cannot claim both resolution and performance of contract terms. The case was remanded for proper account liquidation consistent with resolution doctrine.

Statutes applied

Civil Code, Art. 1124

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By the Intellegal Editorial Board · September 25, 1926

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