Solid Homes Inc. v. Hon. Court of Appeals

Summary

This case involved a breach of an offsetting agreement between two companies where plaintiff delivered construction materials worth over P632,000 but defendant failed to deliver the promised lot. The Supreme Court affirmed the Court of Appeals' modified decision that while the later delivery of title satisfied the principal obligation (preventing unjust enrichment), the defendant remained liable for interest due to delay in performance. The Court confirmed the 12% annual interest rate as contractually agreed upon, rejecting arguments that acceptance of title without protest regarding interest barred recovery under Article 1235. The decision establishes important precedent on payment of principal obligations versus liability for interest in delayed contract performance and prevents unjust enrichment while protecting creditor rights to compensation for delay.