Alex G. Lee v. Hon. Salvador P · G.R. 90926

Petitioner: Alex G. Lee
Respondent: Hon. Salvador P. de Guzman, Jr.
Citation: G.R. No. 90926
Court: Supreme Court
Division: Second Division
Ponente: Paras, J.
Decided: July 6, 1990

Summary

This case involves a contract dispute over the sale of a 1983 Toyota Corolla. Petitioner Lee ordered the vehicle through Motorcars Inc.'s salesman and made a deposit, but the company refused delivery citing price changes and exercised an option clause. The Supreme Court ultimately found a perfected contract existed despite the company's defense, but when the manufacturer closed shop making delivery impossible, the Court awarded damages instead of specific performance. The case establishes that impossibility of performance after final judgment may prevent execution, but the breaching party remains liable for damages under Article 1170 of the Civil Code. The Court awarded P50,000 total damages comprising temperate and exemplary damages for the company's breach of contract.

Statutes applied

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By Intellegal Editorial Board · July 6, 1990

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