Victorias Planters Assn., Inc., et al. vs. Victorias Milling Co., Inc.

MAIN TOPIC – Different Kind Of Obligations : Resolutionary

FACTS

The petitioners Victorias Planters Association, Inc. and North Negros Planters Association, Inc. and the respondent Victorias Milling Co., Inc entered into a milling contract whereby they stipulated a 30-year period within which the sugar cane produced by the petitioner would be milled by the respondent central. The parties also stipulated that in the event of force majuere, the contract shall be deemed suspended during this period. 

During the World War II comprising of 4 years and the post war period comprising of 2 years the petitioners was not able to produce sugarcane and the sugar central is destroyed. In view of the 30-year period of the milling contract the petitioner contended that the contract is deemed terminated.

The respondent stated that the contract speaks of “30 years milling period” not “30 years in time” and petitioners were required to deliver the sugar cane which they failed to deliver during the 6 years.

The trial court ruled in favor of the petitioners.

From this judgment the respondent corporation has appealed.

ISSUE

Whether or not the petitioners be compelled to deliver sugar cane to the appellant for six more years to make up for what they failed to deliver during fortuitous event.

HELD

No. The period of six years—four during the Japanese occupation when the appellant did not operate its mill and the last two during which the appellant reconstructed its mill—cannot be deducted from the thirty-year period stipulated in the contracts.

The stipulation in the contract that in the event of force majeure the contract shall be deemed suspended during said period does not mean that the happening of any of those events stops the running of the period agreed upon. It only relieves the parties from the fulfillment of their respective obligations during that time—the petitioners from delivering sugar cane and the respondent central from milling it.To require the planters to deliver the sugar cane which they failed to deliver during the fortuitous event is to demand from the obligors the fulfillment of an obligation which was impossible of performance at the time it became due. The obligee not being entitled to demand from the obligors the performance of the latters’ part of the contracts under those circumstances cannot later on demand its fulfillment. The performance of what the law has written off cannot be demanded and required.

The prayer that the petitioners be compelled to deliver sugar cane for six more years to make up for what they failed to deliver, the fulfillment of which was impossible, if granted, would in effect be an extension of the terms of the contracts entered into by and between the parties.

DISPOSITIVE PORTION

The judgment appealed from is affirmed, with costs against the appellant.

DOCTRINE

Resolutory when the obligation is demandable at once, although it is terminated upon the arrival of a day certain.