Asturias Sugar Central v. The Pure Cane Molasses Co.

Summary

Asturias Sugar Central sued Pure Cane Molasses Co. for damages after the latter refused to purchase molasses as contracted. The defendant had validly demanded contract cancellation in January 1931, offering to pay the agreed P6,000 consideration, but plaintiff refused. The Supreme Court held that plaintiff's refusal to honor the cancellation provision constituted breach of contract. Since defendant had the contractual right to cancel and made a good faith tender of payment, plaintiff could not recover damages for the period when the contract should have been cancelled due to plaintiff's own violation. The Court established that a party cannot derive a cause of action from its own breach of contract, and that reciprocal contractual obligations should be performed simultaneously without requiring deposit when tender is made in good faith.