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Civil Law•Law School Notes•Obligation and Contracts

R.S. Tomas, Inc. vs. Rizal Cement Company, Inc. G.R. No. 173155. March 21, 2012.

August 31, 2022 by Vala No Comments

FACTS

On December 28, 1990, respondent and petitioner entered into a contract for the supply of labor, materials, and technical supervision for (3) job orders. Rizal agreed to pay P2,944,000.00 for the job orders while RS Tomas undertook to complete the project within 120 days and 10% of the contract price amount for damages for any delay.

RS Tomas failed to fulfill the commitment, thus requested for an extension – despite the lapse of eleven months from the time of the effectivity of the contract entered into between respondent and petitioner, the latter had not completed the projects. Through counsel, the respondent found out that the  financial status of petitioners showed that it could no longer complete the projects as agreed upon which made them decide to terminate the contract.

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