Market Developers v. Hon. Intermediate Appellate Court

Summary

MADE and Uy entered a written shipping contract for cargo transport from Iligan City to Kalibo, Aklan with demurrage provisions. They subsequently agreed orally to divert the cargo to Roxas City. After unloading, Uy demanded demurrage charges claiming an 8-day delay. The Supreme Court reversed lower court decisions, ruling that the original written contract was replaced by a valid oral contract when the destination changed substantially. Since port conditions differed between the two locations, demurrage terms could not be automatically carried over. The Court found insufficient evidence of actual delay and noted Uy's suspicious 6-month delay in demanding payment. This case establishes the validity of oral shipping contracts under the Code of Commerce and demonstrates that substantial contract modifications can create new agreements superseding original written terms.