CLEMONS vs.

NOLTING

Facts:
Petitioner is a citizen of US, temporarily residing in Manila while
Respondent is a duly appointed, qualified & acting Auditor of the
Govt of the Phils. Petitioner was appointed as electrical engineer
effective the date of his departure from his residence under special
contract to expire on Dec. 31, 1921. He will be given straight salary
of $4,000 per annum w/ transportation from residence to the Phils.
& return, w/o civil service privileges.

On Feb. 1, 1921, the Chief Accountant of the Bureau of Public Works
tendered plaintiff a warrant in the sum of Php 666.66 (Phil currency)
in full payment of his salary for the Month of January 192 w/c the
petitioner declined to accept on the ground that under his contract,
he is entitled to receive as compensation $333.33 in US currency or
a sum in Phil currency sufficient to enable him to purchase the sum
of $333.33 in US currency & the sum offered has deficiency of PHP
73.33.

Issue: W/N the government, when it entered into a contract w/ an
employee under a promise to pay his salary in dollars pay such salary
in PHP at the rate of two-to-one?

Held: NO!
If the a government can discharge a contract, payable in dollars, by
tendering Philippine Paper Pesos, then merchants & others who
contract debts payable expressly in dollars may also discharge their
debts in like manner. If such doctrine should be announced, then no
manufacturer or person would take the risk of contracting
obligations here for future payments.

A contract to pay a certain sum in money, w/o any stipulation as to
the kind of money in w/c it shall be paid may always be satisfied by
payment of that sum in any currency w/c is lawful money at the
place & time at w/c payment is to be made. But when the contact
stipulates the specie or kind of money for the performance of the
contract, it must be satisfied in the medium of payment mentioned
in the contract. A law w/c changes the terms of the contract
between parties or imposes a new condition is a law w/c impairs the
obligation of a contract & is therefore null & void.

Clemons is entitled to compensation of $666.66 or its equivalent.