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BARONS MARKETING CORP v.

CA 1%interest per month until full payment, this request was


rejected and Phelps Dodge demanded full payment
Topic: Partial Prestations 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
PROVISION demanded, exemplary damages in the amount of P100,000, the
Article 1248. Unless there is an express stipulation to that expenses of litigation and the costs of suit.
effect, the creditor cannot be compelled partially to receive the The court ruled in favor of Phelps Dodge with the exemplary
prestation in which the obligation consists. Neither may the debtor be
damages of P10,000 and recovery of P3,108,000
required to make partial payments. However, when the debt is in part
Both parties appealed. Phelps Dodge claimed that court should
liquidated and in part unliquidated, the creditor may demand and the
debtor may affect the payment of the former without waiting for the have awarded the sum of P3,802,478.20. It also said that the
liquidation of the latter. amount awarded was a result of a typographical error.
Barons Mktg claimed that Phelps Dodges claim for damages is a
FACTS: result of creditors abuse and it also claimed that Phelps Dodge
August 31, 1973. Phelps Dodge appointed Barons Marketing as failed to prove its cause of action against it.
one of its dealers of electrical wires and cables effective Sept. 1, CoA ruled in favor of Phelps Dodge with the correct amount but
1973. Defendant was given 60 days credit for its purchases of only with the 5% for the Attys fee. No costs.
Phelps Dodges electrical products Barons Mktg then alleged that the Coa erred its decision
Barons Marketing purchased, on credit, from Phelps Dodges
electrical wires and cable in the total amount of P4,102,483.30. ISSUE: W/ON private respondent is guilty of abuse of right
This was then sold to MERALCO, Baron Mktg being the
accredited supplier of the electrical requirements of MERALCO. HELD:
Under the sales invoices issued by Phelps Dodge to Barons No. a creditor cannot be considered in delay if he refuses to
Mktg for the subject purchases, it is stipulated that interest at accept partial performance because, unless otherwise
12% on the amount of attys fees and collection. Barons Mktg provided by law or stipulated by the parties, a creditor cannot
paid P300,000 out of its total purchases leaving an unpaid be compelled to accept partial performance
account of P3,802,478.20. Phelps Dodge wrote Barons Mktg However, if good faith necessitates acceptance or if the
demanding payment of its outstanding obligations due Phelps creditor abuses his right in not accepting, the creditor will
Dodge. Baron Mktg responded by requesting if it could pay its incur in delay if he does not accept such partial performance.
outstanding account in monthly installments of P500,000 plus