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Barons Marketing Corp vs Court of Appeals and Phelp Dodge Phils Inc [G. R. No.

126486. February 9, 1998] 286 SCRA 96 Case Digest

Concept:
Article 1248. Unless there is an express stipulation to that effect, the creditor cannot
be compelled partially to receive the prestation in which the obligation consists.
Neither may the debtor be required to make partial payments. However, when the
debt is in part liquidated and in part unliquidated, the creditor may demand and the
debtor may effect the payment of the former without waiting for the liquidation of
the latter.
Facts:
On
August 31, 1973. Phelps Dodge appointed Barons Marketing as one of its
dealers of electrical wires and cables effective Sept. 1, 1973. Defendant was given
60 days credit for its purchases of Phelps Dodges electrical products. Later on,
Barons Marketing purchased, on credit, from Phelps Dodges electrical wires and
cable in the total amount of P4,102,483.30. This was then sold to MERALCO, Baron
Mktg being the accredited supplier of the electrical requirements of MERALCO.
Under the sales invoices issued by Phelps Dodge to Barons Mktg for the subject
purchases, it is stipulated that interest at 12% on the amount of attys fees and
collection. Barons Mktg paid P300,000 out of its total purchases leaving an unpaid
account of P3,802,478.20. Phelps Dodge wrote Barons Mktg demanding payment of
its outstanding obligations due Phelps Dodge. Baron Mktg responded by requesting
if it could pay its outstanding account in monthly installments of P500,000 plus
1%interest per month until full payment, this request was rejected and Phelps
Dodge demanded full payment. Phelps Dodge then filed a complaint before the
Pasig Trial Court for the recovery of P3,802,478.20 and it also prayed to be awarded
with attorneys fee at the rate of 25% of the amount demanded, exemplary
damages in the amount of P100,000, the expenses of litigation and the costs of suit.
The court ruled in favor of Phelps Dodge with the exemplary damages of P10,000
and recovery of P3,108,000. Both parties appealed. Phelps Dodge claimed that
court should have awarded the sum of P3,802,478.20. It also said that the amount
awarded was a result of a typographical error. Barons Mktg claimed that Phelps
Dodges claim for damages is a result of creditors abuse and it also claimed that
Phelps Dodge failed to prove its cause of action against it.
CoA ruled in favor of Phelps Dodge with the correct amount but only with the
5% for the Attys fee. No costs. Barons Mktg then alleged that the Coa erred its
decision

Issue: W/ON private respondent is guilty of abuse of right

Held: No. a creditor cannot be considered in delay if he refuses to accept partial


performance because, unless otherwise provided by law or stipulated by the parties,
a creditor cannot be compelled to accept
partial performance; however, if good faith necessitates acceptance or if the
creditor abuses his right in not accepting, the creditor will incur in delay if he does
not accept such partial performance.