Marimperio v.

CA
G.R. No. L-40234; December 14, 1987
Paras, J.

Facts: Philin Traders Corporation and Union Import and Export Corporation entered into a joint business
venture for the purchase of copra from Indonesia for sale in Europe. Philin and Union authorized Toeg to
negotiate for its charter but with instructions to keep confidential the fact that they are the real
charterers. Interocean Shipping Corporation, was made to appear as charterer, although it merely acted
in behalf of the real charterers, private respondents herein entered into an agreement with the owner,
Marimperio for the hire of vessel “Paxoi”. The Charterer was however twice in default in its payments
which were supposed to have been done in advance. Petitioner withdrew the vessel from Charterer’s
service and held said Charterer responsible for unpaid hirings and all legal claims. The Charterer again
remitted an amount corresponding to the 3rd 15-day hire of the vessel PAXOI, but this time the
remittance was refused. Union and Philin filed a complaint against the Unknown Owners of the Vessel
“SS Paxoi”, which was amended to identify the defendant as Marimperio Compañia Naviera S.A for
specific performance with prayer for preliminary attachment. Petitioner alleged that he has no
agreement or relationship whatsoever with the respondents and are unknown to petitioner; that the
charter party entered into by petitioner with the Interocean Shipping Co. over the vessel "SS PAXOI"
does not authorize a sub-charter of said vessel to other parties; and that at any rate, any such sub-
charter was without the knowledge or consent of the petitioner or its agent, and therefore, has no effect
and/or is not binding upon the petitioner.

Issue: Whether or not repsondents have the legal capacity to bring the suit for specific performance
against petitioner based on the charter party.

Ruling: No. A contract takes effect between the parties who made it, and also their assigns and heirs,
except in cases where the rights and obligations arising from the contract are not transmissible by their
nature, or by stipulation or by provision of law. Since a contract may be violated only by the parties
thereto, as against each other, in an action upon the contract, the real parties in interest, either as
plaintiff or defendant, must be parties to said contract. Therefore, a party who has not taken part in it
cannot sue or be sued for performance or for cancellation thereof, unless he shows that he has a real
interest affected thereby.