RAFAEL ENRIQUEZ, as administrator of the estate of the late Joaquin 'Ma.

Herrer, plaintiff-
appellant, vs . SUN LIFE ASSURANCE COMPANY OF CANADA, defendant-appellee.
G.R. No. 15895
November 29, 1920

FACTS: Enriquez, the administrator of Herrer’s estate filed a case against Sun Life
Assurance Company of Canada (Sun Life) in order to recover the life annuity of the
deceased in the amount of PhP. 6,000.00. Based on the testimonies of the witnesses, it was
found that Sun Life’s local Manager Mr. White could not tell if the acceptance of Mr.
Herrer’s application had actually been placed in the mails.

ISSUE: WON the contract for the life annuity was perfected, although the acceptance of the
application by Mr. Herrer was uncertain

RULING: The Supreme Court ruled that the contract for a life annuity was not perfected
because it had not been proved satisfactorily that the acceptance of the application ever
came to the knowledge of the applicant.

According to the Supreme Court, although the Insurance Act is silent as to the methods to
be followed in order that there may be a contract of insurance, the Civil Code provides Art.
16 of the Civil Code which states that "In matters which are governed by special laws, any
deficiency of the latter shall be supplied by the provisions of this Code." Hence, the
Supreme Court applied Art. 1262 of the New Civil Code in the case at bar which states that
Consent is shown by the concurrence of offer and acceptance with respect to the thing and
the consideration which are to constitute the contract. An acceptance made by letter
shall not bind the person making the offer except from the time it came to his
knowledge.

Hence, an acceptance of an offer of insurance not actually or constructively communicated

to the proposer does not make a contract.