Yap Unki v. Chua Jamco

Summary

This Supreme Court case involved a partnership dissolution dispute where plaintiff Yap Unki sued defendant Chua Jamco for unpaid installments totaling P1,728.94 from a partnership interest sale agreement. Defendant raised counterclaims for damages from an improperly appointed receiver and alleged unlawful detention. The Court affirmed defendant's obligation under the sale contract, ruling he waived rescission rights by enforcing the contract to discharge the receiver. While rejecting the receiver-related damages as res adjudicata, the Court found defendant entitled to pursue his unlawful detention claim, ruling that false accusation provisions didn't apply to police complaints and that procedural rules allow broad counterclaim rights. The case was remanded for consideration of the detention damages claim, establishing important precedents on contract rescission waiver and counterclaim scope.