JD 5 0 2: O B L I GA T IO N S a n d C O N T RA C T S w i t h S A LE S

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T I T A N -I K ED A C O NS TR U C TI O N V. P R I M E T O WN PR O P ER T Y
[ GR N O . 1 5 8 7 6 8 , 1 2 F E BRU A RY 2 0 08 ]
P o ne nt e: C O RO NA , J .

FACTS:
P r im et o w n P r o pe rt y C o rp o ra ti o n (R es po n d e nt ) e nt e r e d int o a c ont r act
w i t h Ti ta n -I k ed a C o ns t ru c t i o n C or p o ra t i on (P et it i on e r) f o r t he s t ruc t u ra l
w o rks o f a 3 2-s t o ry p ri m e t o w e r. A f t e r t h e c o ns t r uc t io n o f t h e t o w er, th e
re s p o n d e nt a g a in a wa r de d t h e p et it i o n er t he a mo un t o f P 1 3 0,0 00, 00 0. 0 0 f o r
t h e t o w e r’ s a rc h it ec t ur a l des i gn a n d s t r uct u r e.
H ow ev e r, i n 19 9 4, t h e res p o nd e nt e nt e r e d i n to a c o n t rac t o f s al e of t h e
t ow e r in f a v o r o f t h e p et it io n er i n a ma n ne r ca l le d fu l l- s w a p p in g. Si n c e t h e
re s p o n d e nt h ad a l le g e d ly co ns t ru ct ed a l mo s t o n e-t h ir d o f t h e pr oj ect as w e l l
as s o l d s o me u ni t s t o t hi r d p er s o ns un k no w n t o t h e P e t it i o ne r.
Int e g ra t e d I nc. t o ok o v e r t he p r oj e ct , t h u s t h e p eti ti o n e r is d em a n di n g
t h e ret u rn o f it s a d v a n c e d p a y me nt i n t h e a mo u nt o f P 2, 00 0, 0 00. 00 as we l l
as t he k eys to t h e u n i t.

IS S UE:
W he th e r T i ta n - Ik e d a C o ns t r uct io n C o r p or at i o n is e nt it le d t o da ma g es

H E LD : N O
It is w e l l- s et t le d t h a t i n a c ont r a ct n ec es s ari ly t h at t h e re is a m eet i n g o f
t h e mi n d s o f t h e p ar t i es in w h ic h t h i s w i l l be t h e b i n d i ng l a w u p on th e m.
T hus , i n a re ci p r oc a l o bl i g a t i on . B ot h p a rt ies a re o b l ig e d t o p er fo rm t h ei r
ob l i g a t io n s i mu l t a n eo us ly a n d i n go o d f ai t h. I n t hi s c a s e, t h e pe tit i o n e r, T it a n -
Ik ed a c a nn ot r ec ov e r d a m a g es be c a us e i t w a s f ou n d out th e r e w as n o s o l uti o
i n d e b it i o r m is t a k e i n pa y me nt i n t h is c a s e s i nc e t he l at t er is j us t e n t it l e d t o
t h e a c tu a l s e rvi ces i t r e nd e re d t o t h e re s p on d e nt , a n d t hu s i t is o r d e re d to
re tu r n t he co n do m i n iu m u n it s t o t h e re s p on d e nt .

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