copy of 1186 valencia

8/12/2019 Copy of 1186 Valencia

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Republic of the Philippines

SUPREME COURT

ManilaEN BANC

G.R. No. L-!"#$ Ap%il &'( $')

BR*G*+O R. ,ALENC*A( petitione%(s.

REAB*L*TAT*ON /*NANCE CORPORAT*ON an0 COURT O/ APPEALS(

%espon0ents.Eli1io G. La12an fo% petitione%.

3esus A. Aancena fo% %espon0ent.

CONCEPC*ON( 3.4

Petitione% B%i1i0o R. ,alencia see5s a %eie6( b7 ce%tio%a%i( of a 0ecision of the Cou%t ofAppeals(

%ee%sin1 that of the Cou%t of /i%st *nstance of Manila( an0 sentencin1 hi2 to pa7

%espon0ent

Rehabilitation /inance Co%po%ation su2 of P8(&!!( b7 6a7 of actual 0a2a1es( 6ith le1alinte%est

the%eon( f%o2 the 0ate of the institution of this case( apa%t f%o2 the su2 of P(!!! asatto%ne7s

fees( an0 absolin1 %espon0ent f%o2 the counte%clai2 of sai0 petitione%( 6ith costs

a1ainst thelatte%.

*t appea%s that( p%io% to Ma7 '( $'&( %espon0ent issue0 an0 a0e%tise0 to the 1ene%al

public

an 9initation to bi09 fo% the const%uction of a %einfo%ce0 conc%ete buil0in1 at Clae%iaSt%eet(

Cit7 of +aao. /o% the 1ui0ance of( an0 co2pliance b7( the pa%ties conce%ne0( sai0initation tobi0 6as supple2ente0 6ith 9Gene%al Specifications(9 9*nst%uctions to Bi00e%s9 an0

9*n0e: of

Gene%al Con0itions.9 *n %esponse to the initation( petitione% sub2itte0 a bi0( 0ate0 Ma7'(

$'&( pe%tinent pa%ts of 6hich %ea04

*n acco%0ance 6ith 7ou% a0e%tise2ent initin1 p%oposals fo% the Const%uction of the

Office Buil0in1 o6ne0 b7 REAB*L*TAT*ON /*NANCE CORPORAT*ON( to bee%ecte0 at

Clae%ia St%eet( +aao Cit7( an0 sub;ect to all con0itions an0 %e p%opose to fu%nish( 0elie%( an0 place an0

co2plete an7 an0 all necessa%7 6o%5 as calle0 fo% b7 the sai0 Plans an0 Specifications(

6e =o% *> 6ill fu%nish all necessa%7 plant( tools( appliances( an0 labo%( an0 co2plete the6o%5 at ou% =o% M7> o6n e:penses( at the follo6in1 p%ices in Philippine cu%%enc74

*TEM *4

Stipulate0 su2 p%oposal fo% the co2plete const%uction of the Office Buil0in1 as pe%

Plans an0 Specifications( inclu0in1 the follo6in14 . All elect%ical installations


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&. All plu2bin1 installations

Th%ee un0%e0 Ei1ht7 Nine Thousan0 Nine un0%e0 Ei1ht7 Pesos

LUMP SUM ..................................................... P?)$($)!.!!*TEM **4

Stipulate0 su2 p%oposal fo% the co2plete const%uction of the Office Buil0in1 Onl7 as pe%

Plans an0 Specifications.Th%ee un0%e0 /ift7 Ei1ht Thousan0 /ou% un0%e0 Ei1ht7 Pesos

LUMP SUM ...................................................... P?')(#)!.!!

*TEM ***4ELECTR*CAL *NSTALLAT*ONS onl7.

Ei1hteen Thousan0 Nine un0%e0 pesos

LUMP SUM ...................................................... P) $!!.!!

*TEM *,4PLUMB*NG *NSTALLAT*ONS onl7.

T6ele Thousan0 Si: un0%e0 Pesos.

LUMP SUM ....................................................... P&(!!!.!!.

: : : : : : : : :@e =o% *> inclose he%e6ith Bi00e%s Bon0( in the su2 of Thi%t7 Nine Thousan0 Pesos

=P?$(!!!.!!> 6hich is to be %etu%ne0 if this p%oposal is %e;ecte0 o% %etaine0 if accepte0as secu%it7 until the e:ecution an0 0elie%7 of a satisfacto%7 bon0 in the su2 of t6ent7

pe% centu2 =&!> of the total cont%act p%ice fo% the full an0 faithful pe%fo%2ance of the

cont%act.On o% about 3une $( $'&( %espon0ents Boa%0 of Goe%no%s passe0 a %esolution a6a%0in1

the

cont%act fo% the const%uction of the buil0in1 to Sanche D Anti1ua En1inee%in1 Co. fo%

P&$&(!!!( that fo% the elect%ical installations to Lo%eno Sa%2iento( fo% P)(?#!( an0 thatfo%

the plu2bin1 installations to petitione% ,alencia( fo% P&()!! B7 a lette% 0ate0 3une 8(

$'&( 6hich 6as %eceie0 b7 petitione% on 3une &&( $'&( the 2ana1e% of the +aaob%anch of

%espon0ent a0ise0 petitione% of sai0 a6a%0( an0 of the fact that the co%%espon0in1

cont%act0ocu2ents 6e%e bein1 p%epa%e0 in Manila an0 that he =petitione%> 6oul0 be notifie0 upon

%eceipt the%eof. This notice 6as 1ien to petitione% th%ou1h a lette% of sai0 +aao

Mana1e%(

0ate0 3ul7 &)( $'&( in 6hich petitione% 6as( also( %e si1natu%e on the afo%esai0 cont%act an0 to post

thepe%fo%2ance bon0 fo% &! of the cont%act p%ice of P&()!!. Petitione% %eplie0 on Au1ust

&)(

$'&( e:p%essin1 his 9than5s an0 app%eciation9 fo% the a6a%0( an0 statin1 that it 6oul0 beto

the a0anta1e of %espon0ent to a6a%0 the cont%act fo% the plu2bin1 installations to the

cont%acto% of the 2ain buil0in1( because the p%esence of petitione%s 2en in the buil0in1

2i1ht


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1ie sai0 cont%acto% an e:cuse to see5 e:tension of ti2e because s7nch%oniation of the

6o%5(

to p%eent possible 0ela7( 6oul0 not be p%o2ote0 b7 a6a%0in1 the 0iffe%ent pa%ts of thebuil0in1 to 0iffe%ent con-t%acto%s an0 because plu2bin1 installations pa%ticula%l7 shoul0

1o

han0 in han0 6ith the p%o1%ess of the 6o%5 of const%uction of the buil0in1( so that itscont%acto% 2a7 hae no ali0 1%oun0 to as5 e:tension of ti2e. *n ie6 of petitione%s

failu%e to

si1n the afo%e2entione0 cont%act fo% the plu2bin1 installations( %espon0ent eentuall7a6a%0e0 the sa2e fo% P$(!!! to the cont%acto% fo% the const%uction of the buil0in1. Soon

the%eafte%( o% on +ece2be% $( $8&( %espon0ent b%ou1ht this action in the Cou%t of /i%st

*nstance of Manila a1ainst petitione% he%ein( to %ecoe% the su2 of P8(&!! %ep%esentin1

the0iffe%ence bet6een the a2ount of the cont%act a6a%0e0 to hi2 an0 the p%ice at 6hich the

plu2bin1 installations 6e%e a6a%0e0 to Sanche an0 Anti1ua En1inee%in1 Co. F plus

P(!!!( as

atto%ne7s fees( an0 the costs.*n his ans6e%( petitione% alle1e0 that( upon bein1 notifie0 of the a6a%0 in his fao%( he

9p%epa%e0 all the necessa%7 e


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,alencia( 7 po% tanto no es ali0a.

'. E%%o finalinente la Co%te 0e Apelaciones al %eoca% la 0ecision0el ;u1a0o 0e p%i2e%s

instancia 0e Manila 7 con0ena% a B%i1i0o R. ,alencia al pa1o 0e P8(&!!.!! co2o 0aos 7pe%;uicios( 2as P(!!!.!! co2o hono%a%ies 0e abo1a0o( 7 las costas.

The a%1u2ents a00uce0 b7 petitione%( in suppo%t of these assi1n2ents of e%%o%( 2a7 be

su22e0 up as follo6s4. is offe% 6as fo% the const%uction of %espon0ents buil0in1 in +aao( 6ith its elect%ical

an0

plu2bin1 installations( 6he%eas %espon0ent a6a%0e0 to hi2 the con-t%act fo% theplu2bin1

installations onl7. This a6a%0 substantiall7 2o0ifie0( the%efo%e( the te%2s of his offe%( so

that a

2eetin1 of 2in0s 0i0 not ta5e place( inas2uch as such 2o0ification 6as not accepte0 b7petitione% he%ein.

&. Petitione%s offe% 6as 1oo0 until 3une '( $'& onl7( because it 6as acco2panie0 b7 a

bon0

that e:pi%e0 on such 0ate. The a6a%0 in his fao% ca2e to his 5no6le01e on 3une &&($'&(

6hen he %eceie0 the lette% of %espon0ents %ep%esentatie( 0ate0 3une 8( $'&( 1iin1notice

of the a6a%0. ain1 been effecte0 afte% the e:pi%ation of petitione%s offe%( sai0 notice of

itsacceptance 0i0 not pe%fect a cont%act bet6een the pa%ties he%ein.

?. Sai0 acceptance b7 %espon0ent 6as 2a0e sub;ect to a con0ition( na2el7( the 1iin1 of

a

pe%fo%2ance bon0 fo% t6ent7 pe% centu2 =&!> of the a2ount of petitione%s offe%.*nas2uch

as this con0ition 6as not fulfille0( no cont%act coul0( o% 0i0( e:ist bet6een the pa%ties.

@ith %espect to the fi%st a%1u2ent( it is 6o%th7 of notice that the p%oposal sub2itte0 b7petitione% consiste0 of see%al ite2s( a2on1 6hich a%e4 =a> one fo% P?)$($)!( fo% the

9co2plete

const%uction of the office buil0in19 in all elect%ical installationsan0 =&>

all plu2bin1 installations9 =b> anothe% fo% P?')(#)!( fo% the 9co2plete const%uction of

the

office buil0in1 onl79( e:clu0in1( the%efo%e( the elect%ical an0 plu2bin1 installations =e> athi%0

one fo% P)($!!( fo% the 9elect%ical installations onl79( e:clu0in1( the%efo%e( the buil0in1

an0 itsplu2bin1 installations an0 =0> a fou%th ite2 fo% P&(8!!( fo% the 9plu2bin1

installations onl79( e:clu0in1( the%efo%e( the buil0in1 an0 its elect%ical installations. Each

one of these ite2s 6as co2plete in itself ( an0( as such( it 6as 0istinct( sepa%ate an0in0epen0ent f%o2 the othe% ite2s. The a6a%0 in fao% of petitione% he%ein( i2plie0(

the%efo%e(

neithe% a 2o0ification of his offe% no% a pa%tial acceptance the%eof. *t 6as

an un


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offe% o% p%oposal on the pa%t of petitione% he%ein. The effect of sai0 acceptance 6as to

pe%fect a

cont%act( upon notice of the a6a%0 to petitione% he%ein.*nci0entall7( sai0 ite2s in petitione%s bi0 6e%e 0ue( ei0entl7( to the te%2s of

%espon0ents

9inst%uction to bi00e%s(9 pa%a1%aph ' of 6hich %ea0s4@he%e bi0s a%e not


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Sanche an0 Anti1ua En1inee%in1 Co. . . . the cont%act fo% plu2bin1 installations . . .

6ithout

p%io% notice9 to petitione% 96ho is the fi%st a6a%0ee( an0 set up a counte%clai2 fo%0a2a1es

thus alle1e0l7 cause0 to hi2. These acts of petitione% he%ein sho6( be7on0 0oubt( that(

upon%eceipt of notice of the a6a%0 on 3une &&( $'&( he 5ne6 that the cont%act bet6een hi2

an0

%espon0ent ha0 beco2e pe%fecte0( an0 that he 2ust hae felt( acco%0in1l7( that his bi06as still

1oo0 at that ti2e. Refe%%in1 no6 to the thi%0 a%1u2ent( pa%a1%aph ! of the

afo%e2entione0 inst%uction to

bi00e%s( i2pose0 upon the2 the obli1ation to e:ecute the co%%espon0in1 0ocu2ents96ithin

fie ='> 0a7s afte% notice of the acceptance of his bi0.9 Pa%a1%aph ' of sai0 inst%uction to

bi00e%s( fu%the% p%oi0e04

The cont%act shall be 2a0e an0 e:ecute0 in 0a7s( 6ith 1oo0

an0 sufficient secu%ities fo% the faithful pe%fo%2ance the%eof.

Acco%0in1l7( %espon0ents co22unication of 3une 8( $'&( a0ise0 petitione%s that the

cont%act fo% plu2bin1 installations 6as a6a%0e0 to hi2 fo% P&()!! 96ith pe%fo%2ancebon0 of

&! the%eof.9 A1ain( the lette% of %espon0ents 2ana1e% in +aao( 0ate0 3ul7 &)( $'&(

info%2e0 petitione% that the cont%act fo% the plu2bin1 installations ha0 been %eceie0f%o2 the

hea0 office an0 as5e0 hi2 to call at the 6%ite%s office fo% the pu%pose of affi:in1 his

si1natu%eon sai0 cont%act( an0 %e


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less 0i0 it affect the e:istence of a cont%act bet6een hi2 an0 %espon0ent.

Petitione% insists that the 1iin1 of a pe%fo%2ance bon0 6as a con0ition p%ece0ent. But

suchcon0ition p%esupposes the e:istence of a cont%act( 6hich is


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On May 1952,respondent

issued andadvertised to

the eneralpu!lic

aninvitation to!id for the


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construction ifa reinforcedconcrete

!uildinin"avao#

$n response to

the invitation,


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petitionersu!%itted a !idon

co%pleteconstruction,

electricalinstallations,

and plu%!ininstallations#


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$n &une 1952,

respondents'oard of(overnorspasseda resolution

a)ardinthe


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contract forconstruction ofthe !uildin to

*anche+ Antiua-ni

neerin Co#. theelectrical

installation to/oren+o


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*ar%iento. andtheplu%!ininstallations to

petitionerValencia#

0his notice )as

iven to


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petitionerthrouh a letter)here it

)as alsoindicated that

petitioner isinvited to the

office for


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contractsinin#

etitionerrepliedepressin his3than4s and

appreciation


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and statin thatit )ould !e tothe

respondent6sadvantae to

a)ard thecontract for the

plu%!ininstallations to


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the contractorof the %ain!uildin,

!ecause thepresence of the

petitioner6s%en in the

!uildin %iht


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ive saidcontractor anecuse to see4

etension ofti%e. and

!ecauseplu%!in

installationsshouldo hand


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in hand )iththe proress ofthe )or4 of the

construction ofthe!uildin

$n vie) of the


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petitioner6sfailure to sinthe contract,

respondenta)arded

the sa%e tothe contractor

of the !uildin#


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Respondent,then, !rouht

actionaainst petition

er to recover7,288represe

ntin thedifference


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!et)een thea%ount ofcontract

a)arded tohi%at the price

at )hichthe plu%!in

installations)ere a)arded


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to *anche+Antiua-nineerin

Co#

etitionerans)ered and

said that upon


24/49

!ein notifiedof the a)ardin his

favor, he3prepared all

the necessaryeuip%ent,

%aterials andplu%!ers to


25/49

do and perfor%theinstallations#

'ut )ithout hisconsent and

4no)lede,respondent entered

into a contract)ith *anche+


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so he set up acounterclai%of5,888#

CF$: A!solvedpetitioner


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CA: reversedCF$6s decision.&ud%ent )as

for therespondent#


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ence, thepresentcase#$ssues:1#

;


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%a4init inco%pleteand invalid#2#

;


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15, 1952 since it)asacco%panied !y a !ond

)hich epireson the sa%e

date# >*incepetitioneronly

4ne) of the)ard on &une


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22, the contractthen )as notperfected?#@#

;


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theconditionreuirin the ivin

ofa perfor%ance

!ond#

eld:1#


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=o#2#

=o#@#

Bes# 0he

contract )asperfected#"octr

ine:1#


34/49

0he proposalsu!%itted !y

the petitionerconsisted of >1?

co%pleteconstruction of the

!uildin, >2?electrical


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installations,and >@?plu%!ininstall

ations#

-ach one ofthese )as


36/49

co%plete initself

-ach ite% )asdistinct,separateand independe


37/49

nt fro% theotherite%s

0he a)ardiven to thepetitioner )asneither a

%odification of


38/49

hisoffer nora partialacceptance

thereof#

$t )as anunualified

acceptance of


39/49

the fourth ite%of his !od,)hichconstitut

ed a co%pleteoffer#2#

0

he petitioner6s!id did not s


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pecify itsduration#Althouh the

!onditself epired

on &une 1952,this does

not %ean thatthe !id lapsed


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onthe sa%edate#

0he !ond doesnot representthe principalo!liation

itself#


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$t is %erely anaccessory#

0hat is to say,the principalo!liation %aystand )ithout


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theeistence ofthe !ond#

Moreover, the!ond )as ivenfor the !enefitof the


44/49

respondent, notof thepetitioner,

so the for%ercould leally

)aivesaid !enefit#


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etitioner6sconduct iscontrary to his

contention thathis !id has

lapsed )ith theepiration of

the said !ond#o


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e did noto!ect upon

receipt ofnotice of the

a)ardo


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e did not evensay that hisoffer has

epiredalready@#

*uch condition

>ivin of aperfor%ance


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!ond?presupposeseistence of

acontract#

0he eistenceof the

contractual


49/49

relation!et)een theparties did

not dependupon the

postin of aperfor%ance

!ond

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