Pacific Vegetable Oil Corporation sued Angel Singzon for failing to deliver 300 tons of copra as agreed. Singzon originally agreed to sell and deliver 500 tons of copra to Pacific in August 1947. In a settlement, Singzon agreed to deliver 300 tons by February 1948 or pay damages of $10,000. Singzon failed to deliver the copra. The court dismissed the case, holding that Pacific did not have the ability to file the action as it did not obtain a license to transact business in the Philippines. The Supreme Court reversed, finding that the transaction occurred in the U.S., so Pacific did not need a Philippine business license.
Pacific Vegetable Oil Corporation sued Angel Singzon for failing to deliver 300 tons of copra as agreed. Singzon originally agreed to sell and deliver 500 tons of copra to Pacific in August 1947. In a settlement, Singzon agreed to deliver 300 tons by February 1948 or pay damages of $10,000. Singzon failed to deliver the copra. The court dismissed the case, holding that Pacific did not have the ability to file the action as it did not obtain a license to transact business in the Philippines. The Supreme Court reversed, finding that the transaction occurred in the U.S., so Pacific did not need a Philippine business license.
Original Description:
merchantile law
Original Title
29. Pacific Vegetable Oil Corp. vs. Singson (1955)
Pacific Vegetable Oil Corporation sued Angel Singzon for failing to deliver 300 tons of copra as agreed. Singzon originally agreed to sell and deliver 500 tons of copra to Pacific in August 1947. In a settlement, Singzon agreed to deliver 300 tons by February 1948 or pay damages of $10,000. Singzon failed to deliver the copra. The court dismissed the case, holding that Pacific did not have the ability to file the action as it did not obtain a license to transact business in the Philippines. The Supreme Court reversed, finding that the transaction occurred in the U.S., so Pacific did not need a Philippine business license.
Pacific Vegetable Oil Corporation sued Angel Singzon for failing to deliver 300 tons of copra as agreed. Singzon originally agreed to sell and deliver 500 tons of copra to Pacific in August 1947. In a settlement, Singzon agreed to deliver 300 tons by February 1948 or pay damages of $10,000. Singzon failed to deliver the copra. The court dismissed the case, holding that Pacific did not have the ability to file the action as it did not obtain a license to transact business in the Philippines. The Supreme Court reversed, finding that the transaction occurred in the U.S., so Pacific did not need a Philippine business license.
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 la9 )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