Obligations And Contracts Notes.docx

OBLIGATIONS AND CONTRACTS (CASE NOTES) Santos, Katrina Mae (2015-90076) Naga Telephone Co., Inc. vs. CA Reyes v. Caltex (PH) doctrine where person by his contract must perform an act unless rendered impossible by act of God – if he wants to be excused, his duty to provide basis Article 1267 When the service has become so difficult, manifestly beyond contemplation of parties, obligor may be released wholly or in part Rationale: fair and square Case Facts NATELCO v. CamSur II Electric Cooperative (CASURECO) Entered into contract: 10 telephone connections for use by CASURECO, term is as long as the party of the first part has need for the light posts of the second part; shall terminate when NATELCO is forced to stop its operation as public service Enforced over 10 years then suddenly NATELCO files with RTC that contract is unfair o Reformation with damages o Not in conformity with NEA guidelines (dapat PHP 10 per month) and they should pay them o Heavier na, mas mahal na ang posts, they need to repair some pa o Also, CASURECO was using posts not within the agreed area o They also did not take care of the 10 posts Petitioner says o Estoppel. Prescribed na o 4 pesos lang dapat o Typhoons destroyed posts anyway o Broken already by sariling linemen nila o Maggay prepared the contract (director of CASURECO and their lawyer) Trial court: o Ok at first, kasi good faith naman, they didn’t have enough experience pa o Now became unfair o Can order reformation for justice and equity o 10 pesos reasonable o Contract does not mention anything about use outside naga city NATELCO to CA o Mistake in invoking 1267