257799904-Arco-Pulp-and-Paper-Co-vs-Lim-Alternative-Obligation.pdf | Option (Finance) | Paper

Please download to get full document.

View again

of 2
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Information Report
Category:

Documents

Published:

Views: 6 | Pages: 2

Extension: PDF | Download: 0

Share
Related documents
Description
[G.R. No. 206806. June 25, 2014.] ARCO PULP AND PAPER CO., INC. and CANDIDA A. SANTOS, petitioners, vs. DAN T. LIM, doing business under the name and style of QUALITY PAPERS & PLASTIC PRODUCTS ENTERPRISES, respondent. LEONEN, J p: FACTS: 1. Dan T. Lim (Lim) works in the business of supplying scrap papers, cartons, and other raw materials, under the name and Quality Paper and Plastic Products, Enterprises, to factories engaged in the paper mill business. He delivered scrap papers t
Transcript
  [G.R. No. 206806. June 25, 2014.]ARCO PULP AND PAPER CO., INC. and CANDIDA A. AN!O, e#$#$one%&, '&. DAN !.LI(, do$n) *u&$ne&& unde% #+e nae and &#-e o/ UALI! PAPER  PLA!ICPRODUC! EN!ERPRIE, %e& onden#. LEONEN, J p: 3AC!  1.Dan T. Lim (Lim) works in the business of supplin! s rap papers, artons, an# other rawmaterials, un#er the name an# $ualit %aper an# %lasti %ro#u ts, Enterprises, tofa tories en!a!e# in the paper mill business. &e #eli'ere# s rap papers to r o %ulp an#%aper ompan, *n . (r o %ulp an# %aper) throu!h its EO an# %resi#ent, an#i#a .+antos. The parties alle!e#l a!ree# that r o %ulp an# %aper woul# either pa Lim the'alue of the raw materials or #eli'er to him their finish pro#u ts of eui'alent 'alue. -.Lim alle!e# that when he #eli'ere# the raw materials, r o %ulp an# %aper issue# a post#ate# he k, with the assuran e that the he k woul# not boun e. /hen he #eposite# the he k, it was #ishonore# for bein! #rawn a!ainst a lose# a ount. 0.On the same #a, r o %ulp an# %aper, an# a ertain Eri + ee ute# a memoran#um of a!reement where r o %ulp an# %aper boun# themsel'es to #eli'er their finishe# pro#u ts to 2e!apa k ontainer orp., owne# b Eri +.  or#in! to thememoran#um, the raw materials woul# be supplie# b Lim, throu!h his ompan,$ualit %aper an# %lasti %ro#u ts.3.Lim sent a #eman# letter to r o %ulp an# %aper but no pament was ma#e to him.&en e, he file# a omplaint for olle tion of sum of mone. 4.The 5T ren#ere# a 6u#!ment in fa'or of r o %ulp an# %aper an# #ismisse# the omplaine#, hol#in! that when r o %ulp an# %aper an# Eri + an# entere# into thememoran#um of a!reement, no'ation took pla e, whi h etin!uishe# r o %ulp an#%aper7s obli!ation to Lim.8.On appeal, Lim ar!ue# that no'ation #i# not take pla e sin e the memoran#um of a!reement between r o %ulp an# %aper an# Eri + was an e lusi'e an# pri'atea!reement between them.9.The  re'erse# the 5T #e ision an# rule# that the fa ts an# ir umstan es in this ase learl showe# the eisten e of an alternati'e obli!ation. IUE /hether the obli!ation between the parties was an alternati'e obli!ation. ELD es. The obli!ation between the parties was an alternati'e obli!ation. The rule onalternati'e obli!ation is !o'erne# b rti le 11;; of the i'il o#e.  *n an alternati'e obli!ation, there is more than one ob6e t, an# the fulfillment of one is suffi ient,#etermine# b the hoi e of #ebtor who !enerall has the ri!ht of ele tion. The ri!ht of ele tionis etin!uishe# when the part who ma eer ise that option ate!ori all an# uneui'o allmakes his or her hoi e known. The hoi e of the #ebtor must also be ommuni ate# to the re#itor who must re ei'e noti e of it sin e the ob6e t of this noti e is to !i'e the re#itor<opportunit to epress his onsent, or to impu!n the ele tion ma#e b the #ebtor, an# onl after sai# noti e shall the ele tion take le!al effe t when onsente# b the re#itor, or if impu!ne# bthe latter, when #e lare# proper b a ompetent ourt.  or#in! to the fa tual fin#in!s of the trial ourt an# appellate ourt, the ori!inal ontra t between the parties was for respon#ent to #eli'er s rap papers worth %hp9,--=,;8>.01 to petitioner r o %ulp an# %aper. The pament for this #eli'er be ame petitioner r o %ulp an#%aper?s obli!ation. @ a!reement, petitioner r o %ulp an# %aper, as the #ebtor, ha# the option toeither (1) pa the pri e or (-) #eli'er the finishe# pro#u ts of eui'alent 'alue of respon#ent. The appellate ourt, therefore, orre tl i#entifie# the obli!ation between the parties as analternati'e obli!ation, whereb petitioner, r o %ulp an# %aper, after re ei'in! the raw materialsfrom respon#ent, woul# either pa him the pri e of the raw materials or in the alternati'e, #eli'er to him the finishe# pro#u ts of eui'alent 'alue. /hen petitioner r o %ulp an# %aper ten#ere# a he k to respon#ent in partial pament for thes rap papers, the eer ise# their options to pa the pri e. 5espon#ent?s re eipt of the he k an#his subseuent a t of #epositin! it onstitute# his noti e of petitioner r o %ulp an# %aper?soption to pa. This hoi e was also shown b the terms of the memoran#um of a!reement, whi h was ee ute#on the same #a. The memoran#um #e lare# in lear terms that the #eli'er of petitioner r o%ulp an# %aper?s finishe# pro#u ts woul# be to a thir# person, thereb etin!uishin! the optionto #eli'er the finishe# pro#u t of eui'alent 'alue to respon#ent. DIPOI!IE /&E5EAO5E, the petition is DEN*ED in part. The #e ision in B.5. C No. ;49=; is AA*52ED.
Recommended
View more...
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks