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Obligations and Contracts Case Digests
HELD 2: YES
- The voluntary appearance in court and its
submission to its authority or by service of
summons gives the courts jurisdiction over the
person. MPCPs appearance in the courts in the
Civil Case already created the said jurisdiction
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Obligations and Contracts Case Digests
FACTS: Petitioner, Naga Telephone Co., Inc. CA: Affirmed the ruling of the trial court but
(NATELCO), is a telephone company rendering this time not based on the reformation but
local as well as long distance telephone service rather on the operation of Article 1267 of the
in Naga City. On November 1, 1977, it entered Civil Code and on the potestative condition
into a contract with Camarines Sur II Electric with rendered the condition void.
Cooperative, Inc. (CASURECO II), a corporation - The CA held that as reformation only lie or
established for the purpose of operating an may prosper when the contract failed to express
electric power service in the same city, for the the true intentions of the parties due to error or
use by the petitioner in the operation of its mistake, accident, or fraud and there is no
telephone service the electric light posts of the allegation to this effect, the proper basis is the
respondent. In consideration of such use, aforementioned Article.
NATELCO agreed to provide the respondent -The section on the continued use of the electric
with free use of ten telephone connections. post for so long as these are needed by
-The contract between included, among others, NATELCO was considered as being purely
a stipulation to the effect that the contract shall potestative on the part of the petitioner as it
be as long as the party of the first part leaves the continued effectivity of the contract to
(NATELCO) has need for the electric post of the NATELCOs sole and exclusive will. As held in
second part (CASURECO II) it being understood previous jurisprudence, there must be mutuality
that this contract shall terminate when for any and equality in any contract.
reason whatsoever, the party of the second part
is forced to stop, abandoned its operation as a ISSUE: W/N the ruling of the CA is valid. YES.
public service and it becomes necessary to
remove the electric post. HELD: The agreement between the parties has
-After over ten years, the respondent filed on become too one sided in favor of the petitioner
January 2, 1989 with the RTC of Naga City to the great disadvantage of the respondent.
action against the petitioner for reformation of Continuing with the agreement will result in the
the contract on the grounds that it is too one petitioners unjust enrichment at the expense of
sided in favor of the petitioner. The action also the respondent.
prayed that petitioner be ordered to pay for the
use of electric posts which are not covered by
the agreement.
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