ASI CORPORATION VS.

EVANGELISTA
G.R No. 158086.
February 14, 2008

FACTS:

Private respondent Evangelista contracted Petitioner ASJ Corporation for the incubation
and hatching of eggs and by products owned by Evangelista Spouses. The contract includes the
scheduled payments of the service of ASJ Corporation that the amount of installment shall be
paid after the delivery of the chicks. However, the ASJ Corporation detained the chicks because
Evangelista Spouses failed to pay the installment on time.

ISSUE:

Was the detention of the alleged chicks valid and recognized under the law?

RULING:

No, because ASJ Corporation must give due to the Evangelista Spouses in paying the
installment, thus, it must not delay the delivery of the chicks. Thus, under the law, they are
obliged to pay damages with each other for the breach of the obligation.

Therefore, in a contract of service, each party must be in good faith in the performance of
their obligation, thus when the petitioner had detained the hatched eggs of the respondents
spouses, it is an implication of putting prejudice to the business of the spouses due to the delay of
paying installment to the petitioner.