Pacific Vegetable Oil Corp. vs. Singson (1955)

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PacificVegetable Oil 

Corporation v.Angel SingzonGR. No. L-7917 !nreporte" Ca#e$%act#&


This is an action instituted by the plaintiff, a foreign corporation, against the defendant torec ov er t he su m o f P1 57 ,7 60 as d am ag es su ff ered by p lai nt if f as
a con se qu en ce o f t he failure of the defendant to deliver 300 tons of copra  h i ch he sold and bound himself todeliver to the  plaintiff!"in g# on i n $u gu st 1% &7 ,
a cti ng th ro ug h a bro' er in "a n (ra nc is co , s old to P ac ifi c 50 0 t o n s o f c o p r a f o r s h i p m e n t i n " e p t e m b e r a n d ) c t o b e r 1 % & 7 ! T h e
a g r e e d p r i c e t o b e covered by an irrevocable letter of credit for the contract price! Thus, pursuant to this, the*an' of +alifornia, on behalf of Pacific, opened an
irrevocable letter of credit  i th
+hina* a n '   i n   t h e   P h i l i p p i n e s !   " i n g # o n   f a i l e d   t o   s h i p   t h e   5 0 0   t o n s   o f   c o p r a ,   b u t   u p o n n eg ot ia ti on t hrou gh
t he bro' er, a con di ti on al a mi ca bl e se tt le me nt  a s a rriv ed a t u nd er  h i ch "ing#on promised to ship on (ebruary 1%&  , the amount of 300 tons of copra
ti t hh e u n d e r s t a n d i n g   t h a t   i f   h e   e f f e c t u a l l y   s h i p   s a i d   3 0 0 t o n s   o f   c o p r a   n o t l a t e r t h a n (ebruary, the original contract  o u ld be
considered cancelled! *ut that should he fail tos hip sai d 30 0  t on s, "in g# on sh all pa y   Pa cif ic -10 ,0 00  a s da ma ge s an d  s ha ll fu rt he rmo re  be obliged to
fulfill all his obligations under original contract!"in g# on f ail ed to shi p an d d el ive r th e 3 00 to ns o f c op ra t o Pa ci fic a cco rd in g to th ei r  a gree me n t!
T he re af te r, P aci fic d em an de d f ro m "in g# on t he pa ym en t of -1 0, 00 0 bu t h ef ai le d a nd re fu se d to shi p t he 50 0 t on s of co pra! $ s a re su lt of
t he de fa ul t, Pa ci fic  a sforced to purchase copra from the  o rld mar'er and thus incurred additional e.penses!/ence, this action is filed by Pacific! "ing#on, in defense,
filed a motion to dismiss on theg ro un d t ha t P aci fic  eg et ab le )il + orp!  Pa cif ic2 fa ile d t o ob ta in lic en se t o t ra ns ac t  business in the Philippines and
consequently, it had no personality to file the action! T+d e n i e d t h e m o t i o n ! 4 t a l s o d e n i e d   ! / o  e v e r , t h e + o u r t o f $ p p e a l s r e v e r s e d
a n d dis mi sse d t he cas e h ol din g t ha t P ac ifi c ha d n o p erso na li ty t o i nst it ut e t he pres en t cas ee ve n i f it a ft er  a r d s o bt ai ne d a lice ns e t o
t ra ns ac t bu sin es s up on th e t he ory th at th is  belated act did not have the effect of curing the defect!
'##(e&
 8 appellant transacted business in the Philippines in contemplation of la9
)eci#ion&
 8o, it as transacted in the :"!4t appears from the facts that the copra in question as actually sold by the defendant toth e p lai nt if f in th e :" ! 4 t al so a pp ea rs
t ha t t he co nt ra ct  as e nt ered int o i n th e : " by appellee;s bro'er and appellant;s representatives! 4t further appears that the payment of t he pric e  as t o
b e m ad e at " an (ran ci sc o, +al if orni a, t hrou gh a le tt er o f cred it to be op en ed at t he *a n' of + ali fo rn ia ! $n d i th re sp ec t t o t he de liv ery o f
c op ra , it li' e  ise ap pe ars t ha t t he pric e a gree d up on  as -1 &< p er < ,0 00 lbs !, c!i !f ! P aci fic + oa st ! Thi s means that the vendor as to pay not
only the cost of the goods, but also the freight andi nsu ra nc e e. pe ns es , a nd , it  a s =u di cia lly in te rp ret ed , th is is ta 'e n t o i ndi ca te th at th ed el iv ery
is t o b e m ad e a t t he po rt o f d es tin at io n! 4t is th eref o re cle at th at th e c on t

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