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This case involves a dispute between the National Grains Authority (NGA) and a private seller, Leon Soriano, over the sale of 630 cavans of palay grains. Soriano delivered the palay to the NGA but they refused payment, claiming Soriano was not a bona fide farmer. The court found that a contract of sale was perfected between the parties based on their agreement over the thing being sold (palay grains) and the price. While the exact quantity was not specified, the contract could still be valid. The court also found that Soriano was a qualified farmer and ordered the NGA to pay him for the 630 cavans.
Исходное описание:
9 NATIONAL GRAINS AUTHORITY VS. IAC (171 SCRA 131)-DIGEST.
Оригинальное название
9 National Grains Authority vs. Iac (171 Scra 131)-Digest
This case involves a dispute between the National Grains Authority (NGA) and a private seller, Leon Soriano, over the sale of 630 cavans of palay grains. Soriano delivered the palay to the NGA but they refused payment, claiming Soriano was not a bona fide farmer. The court found that a contract of sale was perfected between the parties based on their agreement over the thing being sold (palay grains) and the price. While the exact quantity was not specified, the contract could still be valid. The court also found that Soriano was a qualified farmer and ordered the NGA to pay him for the 630 cavans.
This case involves a dispute between the National Grains Authority (NGA) and a private seller, Leon Soriano, over the sale of 630 cavans of palay grains. Soriano delivered the palay to the NGA but they refused payment, claiming Soriano was not a bona fide farmer. The court found that a contract of sale was perfected between the parties based on their agreement over the thing being sold (palay grains) and the price. While the exact quantity was not specified, the contract could still be valid. The court also found that Soriano was a qualified farmer and ordered the NGA to pay him for the 630 cavans.
Topic: Quantity being indeterminate does not affect perfection of contract;
No need to create new contract Parties of the case: Petitioners: National Grains Authority and William Cabal Respondents: The Intermediate Appellate Court and Leon Soriano Petition: This is a petition for review of the decision of the Intermediate Appellate Court (now Court of Appeals) dated December 23, 1985. Facts: Petitioner National Grains Authority (now National Food Authority or NFA) is a government agency created under PD No. 4. One of its incidental functions is the buying of palay grains from qualified farmers. On August 23, 1979, private respondent Leon Soriano offered to sell palay grains to the NFA, through William Cabal, the Provincial Manager of NFA stationed at Tuguegarao, Cagayan. He submitted the documents required by the NFA for pre-qualifying as a seller. Private respondent Soriano's documents were processed and accordingly, he was given a maximum quota of 2,640 cavans of palay that he may sell to the NFA. In the afternoon of August 23, 1979 and on the following day, August 24, 1979, Soriano delivered 630 cavans of palay. The palay delivered during these two days were not rebagged, classified and weighed. When Soriano demanded payment of the 630 cavans of palay, he was informed that its payment will be held in abeyance since Mr. Cabal was still investigating on an information he received that Soriano was not a bona fide farmer. On August 28, 1979, Cabal wrote Soriano advising him to withdraw from the NFA warehouse the 630 cavans Soriano delivered stating that NFA cannot legally accept the said delivery on the basis of the subsequent certification of the BAEX technician, Napoleon Callangan that Soriano is not a bona fide farmer. Petitioner contended that when the 630 cavans of palay were brought by Soriano to the Carig warehouse of NFA they were only offered for sale. Since the same were not rebagged, classified and weighed in accordance with the palay procurement program of NFA, there was no acceptance of the /graziacullen Page 1
[SALES] August 3, 2016
offer which, to petitioners' mind is a clear case of solicitation or an unaccepted offer to sell. On September 30, 1982, the trial court rendered judgment ordering petitioner National Food Authority, its officer and agents to pay respondent Soriano. Petitioners' appealed the trial court's decision to the Intermediate Appellate Court. The IAC affirmed the decision of the lower court. Issue: Whether or not there is a contract of sale. Held: Yes. Article 1458 of the Civil Code of the Philippines defines sale as a contract whereby one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing, and the other party to pay therefore a price certain in money or its equivalent. Article 147 of NCC provides that the contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price. The acceptance referred to which determines consent is the acceptance of the offer of one party by the other and not of the goods delivered as contended by petitioners. The reason why NFA initially refused acceptance of the 630 cavans of palay delivered by Soriano is that it (NFA) cannot legally accept the said delivery because Soriano is allegedly not a bona fide farmer. The trial court and the appellate court found that Soriano was a bona fide farmer and therefore, he was qualified to sell palay grains to NFA. The fact that the exact number of cavans of palay to be delivered has not been determined does not affect the perfection of the contract. Article 1349 of the New Civil Code provides: ". . .. The fact that the quantity is not determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine the same, without the need of a new contract between the parties." In this case, there was no need for NFA and Soriano to enter into a new contract to determine the exact number of cavans of palay to be sold. Soriano can deliver so much of his produce as long as it does not exceed 2,640 cavans. Both courts likewise agree that NFA's refusal to accept was without just cause. ACCORDINGLY, the instant petition for review is DISMISSED. /graziacullen Page 2
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