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Contract Dispute in Telecom Case

This document summarizes a case involving obligations and contracts. It discusses the doctrine where a person must perform their contractual obligations unless rendered impossible by an act of God. It also discusses Article 1267 which allows an obligor to be released wholly or in part if the service has become so difficult as to be manifestly beyond the contemplation of the parties. The case involved Naga Telephone Co. suing CamSur II Electric Cooperative over a 10+ year contract providing telephone connections on light posts that NATELCO argued had become unfair over time. The trial court ordered reformation of the contract to increase the payment to PHP 10 per month, finding the original contract was no longer fair or equitable.

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151 views1 page

Contract Dispute in Telecom Case

This document summarizes a case involving obligations and contracts. It discusses the doctrine where a person must perform their contractual obligations unless rendered impossible by an act of God. It also discusses Article 1267 which allows an obligor to be released wholly or in part if the service has become so difficult as to be manifestly beyond the contemplation of the parties. The case involved Naga Telephone Co. suing CamSur II Electric Cooperative over a 10+ year contract providing telephone connections on light posts that NATELCO argued had become unfair over time. The trial court ordered reformation of the contract to increase the payment to PHP 10 per month, finding the original contract was no longer fair or equitable.

Uploaded by

kim_santos_20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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

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