Barons Marketing Corp v CA

G.R. No. 126486 February 9, 1998

Art. 1248 – The creditor cannot be compelled partially to receive the presentations in which the obligation consists.

Facts:

·       Phelps Dodge appointed Petitioner Barons Marketing as one of its dealers of electrical wires and cables.

·       As dealer, the petitioner was given by plaintiff-respondent 60 days credit from the date of delivery of its purchases of the latter's electrical products.

·       Covering the period of 8 months, the petitioner purchased on credit from respondent various electrical wires and cables in the total amount of P4,102,438.30, which were in turn sold to MERALCO. Such credit was subject to stipulation of an interest at 12% on the amount due for attorney's fees and collection.

·       The petitioner only paid the amount of P300,000.00 out of its total purchases, thereby leaving a balance of P3,802,478.20.

·       On several occasions, the respondent wrote petitioner demanding payment of its outstanding obligations due the former.

·       In response, the petitioner requested the respondent if it could pay its outstanding account in monthly installments of P500,000.00 plus 1% interest per month until full payment.

·       The respondent rejected defendant's offer and accordingly reiterated its demand for the full payment of defendant's account, until it filed a formal complaint in court.

·          The CA affirmed the trial court’s judgement with modifications.

Issue:

WoN the respondent can be compelled to receive the payment in installments as proposed by the petitioner.

Held:

            No, the Court finds that Phelps Dodge cannot be compelled to receive the payment in installments as proposed by the petitioner.

            Art. 1248. Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.

            Under this provision, the prestation, i.e., the object of the obligation, must be performed in one act, not in parts.

            Thus, CA decision is affirmed with modifications that the attorney's and collection fees, reducing to ten percent (10%) of the principal.