Yu Tek & Co. v. Basilio Gonzalez

Summary

Yu Tek & Co. sued Basilio Gonzalez for breach of a sugar delivery contract. Gonzalez received P3,000 but failed to deliver 600 piculs of sugar within the agreed timeframe. The Supreme Court rejected defendant's parol evidence attempting to limit his obligation to sugar from his own plantation, holding that written contracts cannot be varied by oral testimony. The court distinguished this executory agreement from a perfected sale, ruling that since no specific sugar was appropriated, the loss doctrine did not apply. The SC affirmed the contractual obligation and held that the P1,200 provision constituted valid liquidated damages, modifying the trial court's judgment to include this amount along with the P3,000 return of advance payment.