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    SONG FO V CD

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    baipaulcortejos
    This document summarizes a court case between Song Fo & Company and Hawaiian-Philippine Co. regarding a contract for the sale of molasses. The key issues were whether Hawaiian-Philippine agreed to sell 300,000 or 400,000 gallons of molasses, and whether they had the right to rescind the contract when Song Fo failed to make a payment on time. The court ruled that Hawaiian-Philippine did agree to sell 300,000 gallons and that they did not have the legal right to rescind the contract, as Song Fo's late payment did not constitute a substantial breach. The court awarded damages of around $3,000 to Song Fo.

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    SONG FO V CD

    Uploaded by

    baipaulcortejos
    24 views3 pages
    This document summarizes a court case between Song Fo & Company and Hawaiian-Philippine Co. regarding a contract for the sale of molasses. The key issues were whether Hawaiian-Philippine agreed to sell 300,000 or 400,000 gallons of molasses, and whether they had the right to rescind the contract when Song Fo failed to make a payment on time. The court ruled that Hawaiian-Philippine did agree to sell 300,000 gallons and that they did not have the legal right to rescind the contract, as Song Fo's late payment did not constitute a substantial breach. The court awarded damages of around $3,000 to Song Fo.

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    This document summarizes a court case between Song Fo & Company and Hawaiian-Philippine Co. regarding a contract for the sale of molasses. The key issues were whether Hawaiian-Philippine agreed to sell 300,000 or 400,000 gallons of molasses, and whether they had the right to rescind the contract when Song Fo failed to make a payment on time. The court ruled that Hawaiian-Philippine did agree to sell 300,000 gallons and that they did not have the legal right to rescind the contract, as Song Fo's late payment did not constitute a substantial breach. The court awarded damages of around $3,000 to Song Fo.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views3 pages

    SONG FO V CD

    Uploaded by

    baipaulcortejos
    This document summarizes a court case between Song Fo & Company and Hawaiian-Philippine Co. regarding a contract for the sale of molasses. The key issues were whether Hawaiian-Philippine agreed to sell 300,000 or 400,000 gallons of molasses, and whether they had the right to rescind the contract when Song Fo failed to make a payment on time. The court ruled that Hawaiian-Philippine did agree to sell 300,000 gallons and that they did not have the legal right to rescind the contract, as Song Fo's late payment did not constitute a substantial breach. The court awarded damages of around $3,000 to Song Fo.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    SONG FO v. HAWAIIAN PHILIPPINE CO., GR No.

    23769, 1925-09-16

    Facts:

    7 Phil. 821

    Song Fo & Company, plaintiff

    Hawaiian-Philippine Co., defendant

    Did the defendant agree to sell to the plaintiff 400,000 gallons of


    molasses or 300,000 gallons of molasses?

    But the language used with reference to the additional 100,000 gallons
    was not a definite promise. Still less did it constitute an obligation.

    Had the Hawaiian-Philippine Co. the right to rescind the contract of sale
    made with Song Fo & Company?

    Exhibit P, a... communication sent direct by the Hawaiian-Philippine Co.


    to Song Fo & Company on April 2, 1923, by which the Hawaiian-Philippine
    Co. gave notice of the termination of the contract

    Song Fo & Company was to pay the Hawaiian-Philippine Co. upon


    presentation of accounts at the end of each month. Under this
    hypothesis, Song Fo & Company... should have paid for the molasses
    delivered in December, 1922, and for which accounts were received by it
    on January 5, 1923, not later than January 31 of that year. Instead,
    payment was not made until February 20, 1923. All the rest of the
    molasses was paid for either on time... or ahead of time.

    The time of payment stipulated for in the contract should be treated as of


    the essence of the contract

    The time of payment stipulated for in the contract should be treated as of


    the essence of the contract.

    The general rule is that rescission will not be permitted for a slight or
    casual breach of the contract, but only for such breaches as are so
    substantial and fundamental as to defeat the object of the parties in
    making the agreemen

    Hawaiian-Philippine Co. waived this condition when it arose by accepting


    payment of the overdue accounts and... continuing with the contract.

    On the basis first, of a contract for 300,000 gallons of molasses, and


    second, of a contract imprudently breached by the Hawaiian-Philippine
    Co., what is the measure of damages? We again turn to the facts as
    agreed upon by the parties
    55,006 gallons of molasses were delivered by the defendant to the
    plaintiff before the breach

    244,994 gallons of molasses undelivered

    100,000... gallons of molasses were secured from the Central North


    Negros Sugar Co., Inc., at two centavos a gallon.

    o 244,994 gallons minus the 100,000 gallons just mentioned leaves as a


    result 144,994 gallons... plaintiff had to pay the Central Victorias Milling
    Company one and one-half centavos a gallon more... loss to the plaintiff of
    approximately

    P2,174.91.

    The second cause of action relates to lost profits on account of the


    breach of the contract... it would have been insufficient proof of the
    allegations of the complaint... testimony of the witness Song Heng, if we
    may dignify it as... such, is a mere conclusion, not a proven fac

    Issues:

    judgment was asked for P70,369.50... defendant set up the special


    defense that since the... plaintiff had defaulted in the payment for the
    molasses delivered to it by the defendant under the contract between the
    parties, the latter was compelled to... cancel and rescind the said
    contract

    Ruling:

    he judgment of the trial court condemned the defendant to pay to the


    plaintiff a total of P35,317.93

    The trial court found the former amount to be correct. The appellant
    contends that the smaller amount was the basis of the agreement.

    The Hawaiian-Philippine Co. agreed to deliver to Song Fo & Company


    300,000 gallons of molasses.

    The trial judge answers No, the appellant Yes.

    But actually, there is here present no outstanding fact which would


    legally sanction the rescission of the contract by the Hawaiian-Philippine
    Co.

    We rule that the appellant had no legal right to rescind the contract of
    sale because of the failure of Song Fo & Company to pay for the molasses
    within the time agreed upon by the parties. We sustain the finding of the
    trial judge in this respect.
    we would concede under the first cause of action in round figures P3,000.

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