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    IHCvJoaquin-Lara

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    Joanna Marie Alfaras
    Joaquin provided technical assistance to IHC to secure a foreign loan for a hotel construction project. IHC issued Joaquin shares of stock as payment for his services. However, when Joaquin failed to secure the loan due to DBP cancelling its loan guaranty, IHC cancelled the shares issued to Joaquin. Joaquin appealed, invoking articles 1186 and 1234 of the Civil Code. The court ruled that these articles were not correctly invoked as sources of obligation for IHC to pay Joaquin, as article 1186 refers to preventing fulfillment of an obligation voluntarily and article 1234 refers to substantial performance in good faith.

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    IHCvJoaquin-Lara

    Uploaded by

    Joanna Marie Alfaras
    50 views8 pages
    Joaquin provided technical assistance to IHC to secure a foreign loan for a hotel construction project. IHC issued Joaquin shares of stock as payment for his services. However, when Joaquin failed to secure the loan due to DBP cancelling its loan guaranty, IHC cancelled the shares issued to Joaquin. Joaquin appealed, invoking articles 1186 and 1234 of the Civil Code. The court ruled that these articles were not correctly invoked as sources of obligation for IHC to pay Joaquin, as article 1186 refers to preventing fulfillment of an obligation voluntarily and article 1234 refers to substantial performance in good faith.

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    1._IHCvJoaquin-Lara.pptx

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    Joaquin provided technical assistance to IHC to secure a foreign loan for a hotel construction project. IHC issued Joaquin shares of stock as payment for his services. However, when Joaquin failed to secure the loan due to DBP cancelling its loan guaranty, IHC cancelled the shares issued to Joaquin. Joaquin appealed, invoking articles 1186 and 1234 of the Civil Code. The court ruled that these articles were not correctly invoked as sources of obligation for IHC to pay Joaquin, as article 1186 refers to preventing fulfillment of an obligation voluntarily and article 1234 refers to substantial performance in good faith.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    50 views8 pages

    IHCvJoaquin-Lara

    Uploaded by

    Joanna Marie Alfaras
    Joaquin provided technical assistance to IHC to secure a foreign loan for a hotel construction project. IHC issued Joaquin shares of stock as payment for his services. However, when Joaquin failed to secure the loan due to DBP cancelling its loan guaranty, IHC cancelled the shares issued to Joaquin. Joaquin appealed, invoking articles 1186 and 1234 of the Civil Code. The court ruled that these articles were not correctly invoked as sources of obligation for IHC to pay Joaquin, as article 1186 refers to preventing fulfillment of an obligation voluntarily and article 1234 refers to substantial performance in good faith.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    INTERNATIONAL HOTEL CORPORATION

    vs
    FRANCISCO B. JOAQUIN, JR. Reporter:
    695 SCRA 382
    Lara, Mary Karen G.
    Civil Law Review 2
    FACTS
     On February 1, 1969, respondent Francisco B.
    Joaquin, Jr. submitted a proposal to
    International Hotel Corporation (IHC) for him to
    render technical assistance in securing a
    foreign loan for the construction of a hotel, to
    be guaranteed by the Development Bank of the
    Philippines (DBP).
     The proposal encompasses nine phases.
     The IHC BOD approved phase one to phase six.
     Anent the financing, IHC applied with DBP for a
    foreign loan guaranty which the DBP approved
    subject to several conditions.
     On July 11, 1969, shortly after submitting the
    application to DBP, Joaquin wrote to IHC to
    request the payment of his fees in the amount
    of P500,000.00 for the services that he had
    provided and would be providing to IHC in
    relation to the hotel project.
     Joaquin intimated his amenability to receive
    shares of stock instead of cash in view of the
    IHC's financial situation. IHC granted the
    request.
     Joaquin commenced negotiating with a
    prospective financier, Materials Handling
    Corporation and later on with its principal,
    Barnes International.
     While the negotiations with Barnes were
    ongoing, Joaquin and Jose Valero, the Executive
    Director of IHC, met with another financier, the
    Weston International Corporation (Weston), to
    explore possible financing.
     When Barnes failed to deliver the needed loan,

    IHC informed DBP that it would submit Weston


    for DBP's consideration, IHC informed that
    Weston would take the place of Barnes to DBP,
    However, DBP cancelled its guaranty and denied
    the application of Weston for some conditions.
     With the cancellation of guaranty, it lead to
    failure of Joaquin to secure the needed loan
    which lead to the cancellation of the shares
    of stock previously issued to him by IHC as
    payment for his services.e.
    ndered.
     Joaquin appealed and filed a petition
    against IHC invoking Article 1186 and
    Article1234 of the New Civil Code.
    issue

    WHETHER OR NOT Art. 1186


    and Art. 1234 was correctly
    invoked and can be the source
    of obligation to pay Joaquin.
    ruling
    NO.

    Article 1186. The condition shall be deemed


    fulfilled when the obligor voluntarily prevents
    its fulfillment.
    Article 1234. If the obligation has been
    substantially performed in good faith, the
    obligor may recover as though there had been
    a strict and complete fulfillment, less damages
    suffered by the obligee.
    -END-

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