sales digests july 18

8/9/2019 Sales Digests July 18

http://slidepdf.com/reader/full/sales-digests-july-18 1/3

[1523]Gen. Foods Corp. vs. National Coconut Corp.Nov. 20, 1956J. J! "e#es

C$F % Cost, $nsurance and Frei&'t % si&ni(# t'at t'e price (i)edcovers not onl# t'e cost o( t'e &oods, *ut t'e e)pense o( t'e(rei&'t and insurance to *e paid *# t'e seller up to t'e point o(destination+ title passes to t'e *u#er at t'e oent o( deliver#especiall# naed

Facts-• ppellee NCC sold to appellant GFC 1,500 /later

reduced to 1,000 lon& tons o( copra under t'e ((ters and conditions-

• N$4-c Fi(teen undred /1500 tons o( 2,20pounds eac'. 7eller 'as t'e option o( deliverin& 5per cent ore or less o( t'e contracted 8uantit#, suc' surplus or de(icienc# to *e settled as (ollos-c:n t'e *asis o( t'e delivered ei&'t up to 3 per centat t'e contract price and an# e)cess or de(icienc#*e#ond t'is 3 per cent at t'e ar;et price o( t'e da#o( arrival at port o( disc'ar&e, t'is ar;et price to *e(i)ed *# t'e <)ecutive Coittee o( t'e National$nstitute o( :ilseeds =roducts. <ac' s'ipent to *e

treated as a separate contract• ="$C<-c:ne 'undred and si)t#>(our dollars /?16

per ton o( 2,000 pounds, C$F Ne 4or;• =4@<N-c u#ers to open iediatel# *# ca*le in

(avor o( 7ellers $rrevoca*le !etter o( Credit t'rou&' t'e ='ilippine National an; (or 95 per cent o( invoice value *ased on s'ippin& ei&'t+ alance dueto *e paid proptl# upon ascertainent and *asedupon outturn ei&'ts and 8ualit# at port o( disc'ar&e

• $N7"NC<-c u#er to provide valid insurance (or @arine and Aar ris;s (or 110 per cent o( C$Fcontract value. 7eller to allo *u#er (ro t'e C$Fprice an aount e8uivalent to t'e current rate o(insurance prevailin& on t'e date o( s'ipent, in lieuo( sellers coverin& usual arine insurancet'eselves

• NCC s'ipped 105.62B s'ort tons o( copra via 77@indoro, ei&'in& as done *# !uDon ro;era&e *#ta;in& t'e individual ei&'t o( eac' *a& o( copra andsuin& up t'e total &ross ei&'t o( t'e s'ipent,t'en ei&'in& a certain nu*er o( ept# *a&s todeterine t'e avera&e tare o( t'e ept# *a&s, 'ic'as su*tracted (ro t'e &ross ei&'t o( t'e s'ipentto deterine t'e net ei&'t o( t'e car&o. :n t'estren&t' o( t'e net ei&' t'us (ound, Appellee prepared and reitted to Appellant t'e correspondin&*ills o( ladin& and ot'er docuents, and it'dre(ro t'e latterEs letter o( credit 95 per cent o( t'einvoice value o( t'e s'ipent, or a total o(

?136,66.95• pon arrival in Ne 4or;, t'e net car&o as

reei&'ed *# Appellant and as (ound to ei&' onl#9.B92 s'ort tons. eductin& (ro t'e value o( t'es'orta&e t'e su o( ?,092.02 received *# Appellant (ro t'e insurer (or 5.25 lon& tons lost or destro#edeven *e(ore t'e copra as loaded on *oard t'evessel, Appellant deanded (ro Appellee t'e re(undo( t'e aount o( ?2,15.59

• NCCEs :$C Jose Nieva, 7r., ac;noled&ed in a letterlia*ilit# (or t'e de(icienc# in t'e outturn ei&'ts o( t'ecopra and proised pa#ent t'ereo( as soon as

(unds ere availa*le+ *ut NCC as a*olis'ed andent into li8uidation

• oard o( !i8uidators re(used to pa#+ GFC (iled actionto recover ?2; in CF$ @anila+ disissed

• Plaintiff > Appellant Es t'eor# is t'at alt'ou&' t'e sale*eteen t'e parties 8uoted a C$F Ne 4or; price, t'ea&reeent conteplated t'e pa#ent o( t'e priceaccordin& to t'e ei&'t and 8ualit# o( t'e car&o uponarrival in Ne 4or;, t'e port o( destination, and t'att'ere(ore, t'e ris; o( t'e s'ipent as upon t'e sellerDefendant > Appellee, on t'e ot'er 'and, insists t'att'e contract in 8uestion as an ordinar# C. $. F.a&reeent 'erein deliver# to t'e carrier is deliver# tot'e *u#er, and t'at t'e s'ipent 'avin& *eendelivered to t'e *u#er and t'e latter 'avin& paid itsprice, t'e sale as consuated

$ssue- A'et'er or not a&reeent as an ordinar# C$Fa&reeent /i( #es, deliver# to t'e *u#er is coplete upondeliver# o( t'e &oods to t'e carrier

eld-N:.

• =arties a# odi(# a C$F a&reeent

• $n t'e transaction no in 8uestion, despite t'e 8uoted

price o( C$F Ne 4or;, and t'e ri&'t o( t'e seller toit'dra 95 per cent o( t'e invoice price (ro t'e*u#erEs letter o( credit upon tender o( t'e s'ippin& andot'er docuents re8uired *# t'e contract, t'e e)pressa&reeent t'at t'e Net !anded Aei&'tsH ere to&overn, and t'e provision t'at t'e *alance o( t'e priceas to *e ascertained on t'e *asis o( outturn ei&'tsand 8ualit# o( t'e car&o at t'e port o( disc'ar&e,indicate an intention t'at t'e precise aount to *epaid *# t'e *u#er depended upon t'e ascertainento( t'e e)act net ei&'t o( t'e car&o at t'e port o(destination. 'at is (urt'erore s'on *# t'eprovision t'at t'e seller could deliver 5 per cent oreor less t'an t'e contracted 8uantit#, suc' surplus orde(icienc# to *e paid on t'e *asis o( t'e delivered

ei&'t• A'ile t'e ris; o( loss as apparentl# placed on t'e

Appellant a(ter deliver# o( t'e car&o to t'e carrier, itas nevert'eless a&reed t'at t'e pa#ent o( t'eprice as to *e accordin& to t'e net landed ei&'tH.'e net landed or outturn ei&'t o( t'e car&o, uponarrival in Ne 4or;, as 9.692 s'ort tons. lt'ou&'t'e evidence s'os t'at t'e estiated ei&'t o( t'es'ipent 'en it le(t @anila as 1,05.62B tons, t'e Appellee 'ad t'e *urden o( proo( to s'o t'at t'es'orta&e in ei&'t upon arrival in Ne 4or; as dueto ris;s o( t'e vo#a&e and not t'e natural dr#in& up o(t'e copra 'ile in transit, or to reasona*le alloances(or errors in t'e ei&'in& o( t'e &ross car&o and t'e

ept# *a&s in @anila. $n t'e a*sence o( suc' proo( ont'e part o( t'e s'ipper> Appellee, e are constrainedto 'old t'at t'e net landed ei&'t o( t'e s'ipent inNe 4or; s'ould control, as stipulated in t'ea&reeent, and t'at t'ere(ore, t'e Appellee s'ould *e'eld lia*le (or t'e aount o( ?2,15.59 'ic' it 'adoverdran (ro Appellant Es letter o( credit

• NCC (ailed to prove t'at s'orta&e in ei&'t as dueto ris;s o( t'e vo#a&e and not t'e natural dr#in& up o(copra 'ile in transit, or to reasona*le alloances (orerrors in ei&'in& t'e car&o and ept# *a&s in @anila

Jud&ent reversed.

1



[1523]avid vs. @isais :ccidental $$ <lectric Cooperative, $nc.Jul# 11, 2012J. @endoDa

Facts-

• =etitioner Iir&ilio 7. avid /avid as t'e oner orproprietor o( I7 <lectric 7ales, a copan# en&a&edin t'e *usiness o( suppl#in& electrical 'ardareincludin& trans(orers (or rural electric cooperatives

• o solve its pro*le o( poer s'orta&e a((ectin& soeareas it'in its covera&e, @:<!C$ e)pressed itsintention to purc'ase a 10 @I poer trans(orer(ro avid+ its G@ <n&r. "ada ent to =Es o((ice inC+ = a&reed to suppl# t'e poer trans(orerprovided t'at @:<!C$ ould secure a *oardresolution *ecause t'e ite ould still 'ave to *eiported

• June , 1992, <n&r. "ada and irector Jose JieneD/JieneD, 'o as in>c'ar&e o( procureent,returned to @anila and presented to avid t'ere8uested *oard resolution 'ic' aut'oriDed t'epurc'ase o( one 10 @I poer trans(orer. $n turn,avid presented 'is proposal (or t'e ac8uisition o(

said trans(orer. 'is proposal as t'e saeproposal t'at 'e ould usuall# &ive to 'is clients

• (ter t'e readin& o( t'e proposal and t'e discussion o( ters, avid instructed 'is t'en secretar# and*oo;;eeper, <llen @. Aon&, to t#pe t'e naes o(<n&r. "ada and JieneD at t'e end o( t'e proposal.ot' si&ned t'e docuent under t'e ord con(ore.'e *oard resolution as t'erea(ter attac'ed to t'eproposal

• =roposal- =5.2@, 50K o( t'e purc'ase price s'ould*e paid as donpa#ent and t'e reainin& *alanceto *e paid upon deliver#. Frei&'t 'andlin&, insurance,custos duties, and incidental e)penses ere (or t'eaccount o( t'e *u#er

• oard "esolution, on t'e ot'er 'and, stated t'at t'epurc'ase o( t'e said trans(orer as to *e (inancedt'rou&' a loan (ro t'e National <lectri(ication dinistration /N<. s t'ere as no iediateaction on t'e loan application, <n&r. "ada returned to@anila in earl# ece*er 1992 and re8uested avidto deliver t'e trans(orer to t'e even it'out t'ere8uired donpa#ent. avid &ranted t'e re8uestprovided t'at @:<!C$ ould pa# interest at 2K perannu. <n&r. "ada ac8uiesced to t'e condition. :nece*er 1B, 1992, t'e &oods ere s'ipped to:DaiD Cit# via Aillia !ines. $n t'e ill o( !adin&, asales invoice as included 'ic' stated t'e a&reedinterest rate o( 2K per annu

• not'in& as 'eard (ro @:<!C$ (or soetie a(ter

t'e s'ipent, <anuel @edina /@edina, avidEs@ar;etin& @ana&er, ent to :DaiD Cit# to c'ec; ont'e s'ipent. @edina as a*le to con(er it' <n&r."ada 'o told 'i t'at t'e loan as not #et releasedand as;ed i( it as possi*le to it'dra t'e s'ippedites. @edina a&reed

• no pa#ent as ade a(ter several ont's, @edinaas constrained to send a deand letter, dated7epte*er 15, 1993, 'ic' @:<!C$ dul# received.<n&r. "ada replied in ritin& t'at t'e &oods ere stillin t'e are'ouse o( Aillia !ines a&ain reiteratin&t'at t'e loan 'ad not *een approved *# N<

• ut @edina (ound out t'at &oods 'ad alread# *eenreleased to @:<!C$ evidenced *# t'e s'ippin&copan#Es cop# o( t'e ill o( !adin& 'ic' asstaped "eleased, and it' t'e notation t'at t'earrastre c'ar&es in t'e aount o( =5,095.60 'ad *eenpaid. 'is as supported *# a receipt o( pa#ent it't'e correspondin& car&o deliver# receipt issued *# t'e$nte&rated =ort 7ervices o( :DaiD, $nc.

• deand letters ere sent to @:<!C$

• avid (iled a coplaint (or speci(ic per(orance it'

daa&es it' t'e "C. $n response, @:<C!$ oved(or its disissal on t'e &round t'at t'ere as lac; o(cause o( action as t'ere as no contract o( sale, to*e&in it', or in t'e alternative, t'e said contract asunen(orcea*le under t'e 7tatute o( Frauds. @:<!C$ar&ued t'at t'e 8uotation letter could not *econsidered a *indin& contract *ecause t'ere asnot'in& in t'e said docuent (ro 'ic' consent, onits part, to t'e ters and conditions proposed *#avid could *e in(erred. avid ;ne t'at @:<!C$Esassent could onl# *e o*tained upon t'e issuance o( apurc'ase order in (avor o( t'e *idder c'osen *# t'eCanvass and ards Coittee

• "C disissed t'e coplaint. $t (ound t'at alt'ou&' acontract o( sale as per(ected, it as not

consuated *ecause avid (ailed to prove t'att'ere as indeed a deliver# o( t'e su*Lect ite andt'at @:<!C$ received it

• C- no contract o( sale, erel# contract to sell+ nodeliver# o( t'e ites

• @:<!C$, in den#in& t'at t'e poer trans(orer asdelivered to it, ar&ued t'at t'e ill o( !adin& 'ic'avid as rel#in& upon as not conclusive. $t ar&uedt'at alt'ou&' t'e *ill o( ladin& as staped"eleased, t'ere as not'in& in it t'at indicated t'atsaid poer trans(orer as indeed released to it ordelivered to its possession. For t'is reason, it is itsposition t'at it is not lia*le to pa# t'e purc'ase priceo( t'e 10 @I poer trans(orer

$ssue- A'et'er or not t'ere as deliver# t'at consuatedt'e contract

eld-4<7. 1523 applies.

• :n issue o( 'et'er or not t'ere is contract o( sale-4<7, despite its unconventional (or, contract o( sale % eetin& o( inds, su*Lect atter, price certain

• :n t'e issue o( deliver#- 'is Court is una*le to a&reeit' t'e C t'at t'ere as no deliver# o( t'e ites.:n t'e contrar#, t'ere as deliver# and release

• "e(er *ac; to proposal- s'ippin& e)penses to *e'andled *# *u#er > it is clear t'at @:<!C$ a&reed t'at

t'e poer trans(orer ould *e delivered and t'at t'e(rei&'t, 'andlin&, insurance, custo duties, andincidental e)penses s'all *e s'ouldered *# it % @a;es rt 1523 applica*le

• 1523- A'ere, in pursuance o( a contract o( sale, t'eseller is aut'oriDed or re8uired to send t'e &oods tot'e *u#er deliver# o( t'e &oods to a carrier, 'et'ernaed *# t'e *u#er or not, (or t'e purpose o(transission to t'e *u#er is deeed to *e a deliver#o( t'e &oods to t'e *u#er, e)cept in t'e casesprovided (or in rticle 1503, (irst, second and t'irdpara&rap's, or unless a contrar# intent appears

2



• deliver# ade *# avid to Aillia !ines, $nc., asevidenced *# t'e ill o( !adin&, as deeed to *e adeliver# to @:<!C$. avid as aut'oriDed to send t'epoer trans(orer to t'e *u#er pursuant to t'eira&reeent. A'en avid sent t'e ite t'rou&' t'ecarrier, it aounted to a deliver# to @:<!C$

• rticle 1523 provides a ere presuption and inorder to overcoe said presuption, @:<!C$ s'ould'ave presented evidence to t'e contrar#. 'e *urden

o( proo( as s'i(ted to @:<!C$, 'o 'ad to s'o t'att'e rule under rticle 1523 as not applica*le. $n t'isre&ard, 'oever, @:<!C$ (ailed

• 'ere *ein& deliver# and release, said (act constitutespartial per(orance 'ic' ta;es t'e case out o( t'eprotection o( t'e 7tatute o( Frauds

=etition &ranted.

3

sales digests july 18

Documents