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