Leano v CA

PAL v CA

Same; Even if the contract provided that the total purchase price is
payable within a ten-year period, specifying that the price shall be paid in
monthly instalments for w/c the corresponding penalty shall be imposed
in case of default, the vendee cannot ignore the provision on the payment
of monthly instalments by claiming that the ten-year period within which
to pay has not elapsed.

Common Carriers; Contract of Carriage; Contract of Carriage is imbued

with public interest requiring common carriers to carry passengers safely
using utmost diligence of very catious person with due regard for all
circumstances.

Same; Obligations and Contracts; In reciprocal obligations, neither party

incurs in delay if the other does not comply or is not ready to comply in a
proper manner with what is incumbent upon him, but from the moment
one of the parties fulfils his obligation, delay by the other begins.
In the case at bar, res. Fernando performed his part of the obligation by
allowing petitioner Leano to continue in possession and use of the
property. Clearly, when petitioner Leano did not pay the monthly
amortizations in accordance with the terms of the contract, she was in
delay and liable for damages. However, we agree with the trial court that
the default committed by petitioner Leano in respect of the obligation
could be compensated by the interest and surcharges imposed upon her
under the contract in question.
Same; same; It is a cardinal rule in the interpretation of contracts that if
the terms are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of its stipulations shall control.
Heirs of Bacus v CA
Obligations and Contracts; Under an option to buy are reciprocal
obligations the performance of one obligation is conditioned on the
simultaneous fulfilment of the other obligation; Notice of the creditors
decision to exercise his option to buy need not be coupled with actual
payment of the price, so long as this is delivered to the owner of the
property upon performance of his part of the agreement; Where
obligation is not yet due, consignation in court of the purchase price is not
yet required.
Same;Same;Same; In reciprocal obligations, neither party incure in delay
if the other does not comply or is not ready to comply in a proper manner
with what is incumbent upon him.
Corollary, private respondents did not incur in delay when they did not yet
deliver payment nor make a consignation before the expiration of the
contract.
Megaworld v Tanseco
Obligations and Contracts; In reciprocal obligations, neither party incurs
in delay if the other party does not comply or is not ready to comply in a
proper manner with what is incumbent upon him. From the moment one
of the parties fulfils his obligation, delay by the other begins.
Civil Law; Contracts; Since Art 1191 of the CC does not apply to a
contract to buy and sell, cancellation, not rescission, of the contract is the
correct remedy in the premises.
General Milling v Ramos
Actions; Default; Requisites; There are three requisites necessary for a
finding of default. First, the obligation is demandable and liquidated;
second, the debtor delays performance; and third, the creditor judicially
or extrajudicially requires the debtors performance.
Same; same; Foreclosure of Mortgage; Foreclosure is valid only when the
debtor is in default in the payment of his obligation.
Cruz v Gruspe
Civil Law; Contracts; Contracts are obligatory no matter what their forms
may be, whenever the essential requisites for their validity are present.
In determining whether a document is an affidavit or a contract, the Court
looks beyond the title given by the parties in their document, since the
denomination or title given by the parties in their document is not
conclusive of the nature of its contents. In the construction or
interpretation of an instrument, the intention of the parties is primordial
and is to be pursued. If the terms of the document are clear and leave no
doubt on the intention of the contracting parties, the literal meaning of its
stipulations shall control. If the words appear to be contrary to the
parties evident intention, the latter shall prevail over the former.
Same; Obligations; Default; In order that the debtor may be in default, it
is necessary that the ff requisites be present: (1) that the obligation be
demandable and already liquidated; (2) that the debtor delays
performance; (3) that the creditor requires the performance judicially and
extrajudicially.

Same; same; PAL failed to grasp the exacting standard required by law.
The occurrence of a fortuitous event did not terminate PALs contract with
its passengers who must still necessarily have to exercise extraordinary
diligence in safeguarding the stranded passengers until they have reached
their final destination.
Southeastern College v CA
Obligations and Contracts; Fortuitous events; Words and Phrases; The
antecedent of fortuitous event or caso fortuito is found in the Partidas
which defines it as an event which takes place by accident and could not
have been foreseen. Escriche elaborates it as an unexpected event or act
of God which could neither be foreseen nor resisted. Arturo Tolentino:
Fortuitous event (1) by nature, such as earthquakes, storms, floods,
epidemics, fires, etc. and (2) by act of man, such as an armed invasion,
attack by bandits, govtal prohibtions, robbery, etc.
Same; Act of God cannot be invoked for the protection of a person who
has been guilty of gross negligence in not trying to forestall its possible
adverse consequences. When a persons negligence concurs with an act
og God in producing damage or injury to another, such person is not
exempt from liability by showing that the immediate or proximate cause
of the damage or injury to another, such person is not exempt from
liability by showing that the immediate or proximate cause of the damage
or injury was a fortuitous event. When the effect is found to be partly the
result of the participation of man- whether it be from active intervention,
or neglect, or failure to act- the whole occurrence is hereby humanized,
and removed from the rules applicable to acts of God.
Same; Same; Typhoons; Words and Phrases; Negligence; Explained:
There is no question that a typhoon or storm is a fortuitous event, a
natural occurrence which may be foreseen but is unavoidable despite any
amount of foresight, diligence or care. In order to be exempt from liability
arising from any adverse consequence engendered thereby, there should
have been no human participation amounting to a negligent act.
Same; Same; Same; Ocular Inspections; Damages; A person claiming
damages for the negligence of another has the burden of proving the
existence of fault or negligence causative of his injury or loss; As the term
imparts, an ocular inspection is one by means of actual sight or viewing
What is visual to the eye though, is not always reflective of the real cause
behind.
Same; same; same; Building permits; Having obtained both building
permit and certificate of occupancy, these are, at the very least, prima
facie evidence of the regular and proper construction of a building.
Philcomsat v Globe Telecom
Civil Law; Contracts; Force Majeure; Article 1174 exempts an obligor from
liability not only to events that are unforeseeable, but also to those which
are foreseeable but inevitable. A fortuitous event under the said article
may either be act of God, or natural occurrences such as floods or
typhoons, or an act of man, such as riots, strikes or wars.
Same; same; same; Requisites; The occurrence of the following elements
must be established In order that Globe may be exempt form noncompliance with its obligation to pay rentals under Sec. 8, the
concurrence of the ff. elements must be established: (1) The event must
be independent of the human will; (2) the concurrence must render it
impossible for the debtor to fulfil the obligation in a normal manner; and
(3) the obligor must be free of participation in, or aggravation of, the
injury to the creditor.
Gaisano Cagayan Inc. v Insurance Company of North America
Same; Same; Insurance; Insurable Interest; Kinds; An Insurable interest
in property may consist in the following- Sec. 13 of our Insurance Code
defines insurable interest as every interest in property, whether real or
personal, or any relation thereto, or liability in respect thereof, of such
nature that a contemplated peril might directly damnify the insured.
Parenthetically, under Sec 14 of the same Code, an insurable interest in
property ma consist in: (a) an existing interest; (b) an inchoate interest
founded on existing interest; or (c) an expectancy, coupled with an
existing interest in that out of which the expectancy arises.
Same; same; same; Anyone has an insurable interest in property who
derives a benefit from its existence or would suffer loss from its

destruction. An insurable interest in property does not necessarily imply

a property interest in, or a lien upon, or possession of, the subj matter of
the insurance, and neither the title nor a beneficial interest is requisite to
the existence of such an interest, it is sufficient that the insured is so
situated with reference to the property that he would be liable to loss
should it be injured or destroyed by the peril against which it is insured.
Anyone has an insurable interest in property who derives a benefit from
its existence or would suffer loss from its destruction. Indeed, a vendor or
seller retains an insurable interest in the property sold so long as he has

any interest therein, in other words, so long as he would suffer by its

destruction, as where he has a vendors lien. In this case, the insurable
interest of IMC and LSPI pertain to be unpaid accounts appearing in their
Books of Account 45 days after the time of the loss covered by the
policies.
Sicam v Jorge