8/13/2019 Article 1257 Stipulation Pour Autrui (Uy vs Leonard)

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Article 1257. Stipulation pour autrui

UY TAM and UY YET (plainttiff-appellant) v. THMAS !E"A#$ (defendant-plaintiff)

%a&e 'act&

A bond was executed between Thomas Leonard as obligors and the city of Manila asobligee. The bond was executed in connection with and to secure the performance of a

contract entered into by Hosty and Brown, the principals of the bond, for furnishing

crushed rock to the city of Manila for one year.

The contractual bond reads as follows

!Know all men by these presents, that we, R. C. Hosty and W. W. Brown, of the

city of Manila, Province of Manila, Island of !"on, Philippine Islands, as

principals, and #eor$e C. %ellner, #eo. &. Brown, Walter &. 'lsen, Harold M.

Pitt, and (homas eonard, all of the city of Manila, P. I., as s!reties are held and

bo!nd !nto the city of Manila in the penal s!m of twenty)ei$ht tho!sand five

h!ndred pesos, Philippine c!rrency, to the payment of which s!m well and tr!ly

to be made, we bind o!rselves, o!r heirs, e*ec!tors, and administrators, in the

amo!nt for which each has severally +!alified as shown in the several affidavits

hereto attached.

The condition of this obligation is such, that whereas the abo"e#bounden $. %. Hosty and

&. &. Brown ha"e on the '(th day of )anuary, '*'', entered into a contract with the city

of Manila, represented by the president of its Municipal Board, for furnishing crushed

rock for a period of one year.

+y Tam and +y et furnished the contractors with certain materials for use in the

performance of said contract, ha"ing pre"iously notified Leonard of the acceptance of theconditions of the bond relating to laborers and material#men. The city of Manila refused

to any intention to fa"or materialmen and laborers.

&&ue

a- &hether or not the plaintiff is conditioned payment for all labor and material, construed

as a stipulation

b- An appeal to sustain the defendantsdenial upon the ground that the complaint does not

state facts sufficient to constitute a cause of action, and dismiss the complaint with costs.

$eci&ion

a- The plaintiff is denied for a stipulation for labor and material

b- The udgment of the lower court, sustaining the denial to the complaint, is affirmed, with

costs against the appellants.

#e&olutio ndeti

Article '(/0 of the %i"il %ode is confined to the enforcement of stipulations in fa"or of third

persons. The history of the doctrine and the meaning of the word stipulation re1uire that the

benefit claimed by a third person must be one intended to be conferred upon him by the parties.

The article does not lend its aid to an incidental benefit which a third person may ha"e in theperformance of the contract.

8/13/2019 Article 1257 Stipulation Pour Autrui (Uy vs Leonard)

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The intent of the contracting parties to benefit a third person must be clearly expressed. A clause in

a contractors bond reading solely to a municipality and conditioned to pay for all labor and

material cannot be construed as a stipulation pour autrui a"ailable to materialmen. The absence of

apt words describing the materialmen as obligees on the bond negati"es a clear intent of theparties to stipulate in their fa"or. 2uch a construction of the bond is also in disregard of article

'3(0 of the %i"il %ode, which re1uires a contract of surety to be express and prohibits its

extension to obects not specified. The facts that all signatories to the bond oin in denying any

intention to fa"or materialmen and laborers by the insertion of such a clause is also an obection to

such a construction of the instrument.