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Transfield Philippines vs Luzon Hydro Electric Corp.

(GR No 146717, Nov 22, 2004, Tinga)

Transfield entered into a turn-key ontrat !it" #u$on %ydro &or' (#%&)

nder t"e ontrat, Transfield !ere to onstrut a "ydro-eletri 'lants in

*enguet and +loos T"e ontrat 'rovides for a 'eriod for !"i" t"e 'roet

is to e o.'leted and also allo!s for t"e e/tension of t"e 'eriod 'rovided

t"at t"e e/tension is ased on ustifiale grounds su" as fortuitous event

+n order to guarantee 'erfor.ane y Transfield, t!o stand-y letters of

redit !ere reuired to e o'ened uring t"e onstrution of t"e 'lant,

Transfield reuested for e/tension of ti.e iting fortuitous events roug"t

aout y ty'"oon, arriades and de.onstration #%& did not give due

ourse to t"e e/tension of t"e 'eriod 'rayed for ut referred t"e .atter toaritration o..ittee

+n t"e .ean!"ile, eause of t"e delay in t"e onstrution of t"e 'lant, #%&

alled on t"e stand-y letters of redit eause of default %o!ever, t"e

de.and !as oeted y Transfield on t"e ground t"at t"ere is still 'ending

aritration on t"eir reuest for e/tension of ti.e #%& invoked t"e

 inde'endene 'rini'le3 n t"e ot"er "and, Transfield lai.s fraud on t"e

'art of #%& on alling t"e stand-y letters of redit

nder t"e inde'endene 'rini'le, a #& ao..odation is entirely distint

and se'arate, inde'endent agree.ent +t is not su''osed to e affeted y

t"e .ain ontrat u'on !"i" it rests

T"e ourt "eld for t"e #%& 5ollo!ing t"e inde'endene 'rini'le, even

granting t"at t"ere is still issue to e resolved arising fro. t"e turn-key

'roet T"is issue is not su''osed to affet t"e oligation of t"e ank to 'ay

t"e letter of redit in uestion T"e ourt stressed t"at a #& ao..odationis intended to enefit not only t"e enefiiary t"erein ut t"e a''liant

t"ereon n t"e issue of fraud, t"e & "eld t"at t"ere is not"ing in t"e turn-

key ontrat !"i" states t"at all issues et!een t"e 'arties .ust e

resolved first efore #%& an all on t"e stand-y #& ut t"e ontrat

'rovides t"at if Transfield defaults, t"en #%& an all on t"ese stand-y #&

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Lander vs Metrobank

(GR No 18622 9uly :0, 2004, antiago)

5ats;

T"e usiness of t"e 'etitioner is i.'ortation of !elding rods #ander o'ened

a #& !it" <etroank and as seurity, a trust reei't !as e/euted y #ander

in favor of <etroank T"e TR .atured ut #ander !as unale to 'ay

<etroank so t"e for.er returned t"e goods to <etroank to avoid ri.inal

liaility (estafa) <etroank sold t"e goods in an aution ut t"e 'roeeds

!ere not suffiient to satisfy t"e entire oligation of t"e 'etitioner

+ssues;

1 &an t"e <etroank lai. t"e defiieny=

2 &an !e not onsider t"e return of t"e goods in full satisfation of

<etroank>s lai. against t"e 'etitioner=

%eld;

?es e 7 of t"e TR #a! 'rovides t"at in ase of sale y t"e entruster of t"e

'ossessed goods, t"e entrustee s"all reeive any sur'lus ut s"all e liale

to t"e entruster for any defiieny

No Re'ossession of t"e goods is not intended to transfer o!ners"i' of t"e

goods (daion en 'ago does not lie) ut as a seurity for t"e loan oligation

of t"e detor t"at arose fro. t"e trust reei't agree.ent

National Commercial ank of !audi "rabia vs C"

(GR No 124268, 9an :1 200:)

5ats;

@etitioner in t"is ase !as sued in onnetion !it" a #& transation T"e

defense of 'resri'tion !as invoked y t"e 'etitioner lai.ing t"at solutio

indeeti ases 'resrie in si/ years

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+ssue;

+f one is to 'ursue a lai. arising fro. a #& ao..odation, !it"in !"at

ti.eA'eriod s"ould "e ring an ation t"ereon=

&an t"e ourt a''ly t"e dotrine of la"es=

%eld;

10 years eause #& is a !ritten ontrat

&ourts are not 'er.itted to a''ly t"e dotrine of la"es earlier t"an t"e

e/'iration of ti.e li.ited for t"e o..ene.ent of ation of la!

@osted y #a!stude at 10;0: B< 0 o..ented 

#aels; Caatas Co.ersyal