G.R. No. 175021 June 15, 2011
Art. 1240 – Payment shall be made to person in whose
favor obligation has been constituted.
Facts:
·
Respondent is
the proprietress of Montaguz General Merchandise (MGM), a contractor
accredited by the PNP for the supply of office and construction materials and
equipment, and for the delivery of various services.
·
The PNP
Engineering Services (PNPES) purchased various building materials for the construction
of a four-storey condominium building with roof deck at Camp Crame, Quezon
City.
·
Both parties
executed a Contract of Agreement, wherein MGM will procure and deliver to the
PNP the construction materials itemized in the purchase order, and the PNP will
pay the former of ₱2,288,562.60.
·
After delivery, the MGM demanded the payment.
·
The PNP denied any liability as it already paid the
respondent as evidenced by LBP Check No.
0000530631 issued to Montaguz Builders (her other company, which was also doing
business with the PNP) and not to MGM, with which the contract was made.
·
But respondent
averred, the PNP’s own Checking Account Section Logbook or the Warrant
Register, showed that it was one Edgardo Cruz (another contractor) who received
the check due to MGM, not her.
Issue:
WoN
the respondent was paid under the Contract of
Agreement.
Held:
No, the Court holds that the respondent was not paid under the Contract of Agreement in
accordance with Article 1240 of the Civil Code.
Art. 1240. Payment shall be made to
the person in whose favor the obligation has been constituted, or his successor
in interest, or any person authorized to receive it.
In the instant case, the LBP check
was not received by her or by her authorized personnel as shown in PNP’s own
records. In order for PNP’s payment to be effective in extinguishing its
obligation, it must be made to the proper person. Since it was received by
unauthorized person, its obligation has not been extinguished as it is deemed
that she was not paid under the said agreement.
Thus,
the Petition is DENIED.
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