6. TIU SIUCO VS.

SIMEON HABANA
(G.R. No. 21106, February 21, 1924) HELD

Although numerous changes were made, and there was a material

increase in the cost of the building, there was no material change in
DOCTRINE: In order that an obligation may be extinguished by another its size or dimensions.
which substitutes the same; it is imperative that it be so declared in
unequivocal terms, or that the old or new obligation be on every point In other words, the original contract was used as a basis for the
incompatible with each other. 1292 construction of the building, and any changes or alterations which
were made were founded upon the original contract, and were
FACTS
made with the understanding and agreement that the defendant
would pay the reasonable value of all of such changes and
Tiu Siuco entered into contract with Simeon Habana, where Suico
alterations.
would construct a building for Simeon Habana on a lot of the
cadaster of Jaro.
The old contract was not abandoned, as the original plans were
followed. Therefore, without the consent of the owner, the
In the process of the construction, many written alterations were
contractor Tiu Siuco cannot treat the old contract as abandoned.
agreed upon and really made, but it was proved that essentially, the
plans were the original plans.
Tiu Siuco, without the consent of the owner Simeon Habana,
cannot recover on the basis of quantum meruit (on the work done).
It must be stated that in the contract, a specific amount for the
Rather, the contract price will form the basis of payment, plus cost
construction was agreed upon.
of the alterations.
Later, when the building was finished, the contractor Tiu Siuco
wanted to abandon the original price on the ground that the WHO WON? COURT RULED IN FAVOR OF SIUCO BUT THERE
alterations on the building had caused an abandonment or novation WAS NO NOVATION
of the old contract. Tiu Siuco claims that there is novation on
account of the numerous changes and alterations in the
construction of the building.

Tiu Siuco therefor wanted to be paid, not on the basis of the

contract, but on the basis of quantum meruit (on the work done).
Simeon Habana did not consent to this.

ISSUE

WON there was novation? NO.