Domel Trading Corporation v · G.R. 84813

Petitioner: Domel Trading Corporation
Respondent: Honorable Court of Appeals
Citation: G.R. No. 84813
Court: Supreme Court
Division: First Division
Ponente: Ynares-Santiago, J.
Decided: September 22, 1999

Summary

This consolidated Supreme Court case involved a breach of contract dispute between DOMEL Trading Corporation and NDC-NACIDA Raw Materials Corporation over the non-delivery of buri midribs and rattan poles. DOMEL failed to deliver goods within stipulated timeframes despite letters of credit being opened. The Supreme Court affirmed the Court of Appeals' decision reducing liquidated damages from the trial court's award of P908,966.77 to P150,000.00, finding the original penalty excessive under Civil Code provisions. The Court rejected DOMEL's defense that buyer inspection was required before delivery, holding that the seller was obligated to deliver goods according to contract specifications. The case establishes important precedent on the equitable reduction of unconscionable penalty clauses and the allocation of inspection duties in commercial sales contracts.

Statutes applied

Related cases

Other Philippine cases on the same provisions and issues.

Clarita D. Aclado v. Government Service Insurance System G.R. No. 260428
Jose v. Ramirez G.R. No. 237823
Urban Consolidated Constructors Philippines v. The Insular Life Assurance Co. G.R. No. 180824
State Investment House v. Court of Appeals G.R. No. 112590
Barons Marketing Corp. v. Court of Appeals G.R. No. 126486
Nunelon R. Marquez v. Elisan Credit Corporation G.R. No. 194642
Erminda F. Florentino v. Supervalue G.R. No. 172384
Antonio Tan v. Court of Appeals G.R. No. 116285

By Intellegal Editorial Board · September 22, 1999

Search Philippine case law on Intellegal →

AI-assisted case analysis — for research only. Verify against the official decision. A research aid, not legal advice; using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer. Verify every holding and citation against the official decision (Supreme Court E-Library / Official Gazette) before relying on it.