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TOYOTA SHAW, INC. vs.CA

FACTS:

Sometime in June 1989, Sosa and his son, i!"e#t, $ent to the To%ota O&i'e

to (u#'hase a To%ota )ite A'e $hi'h the% $i!! use in thei# (#ovin'ia! visit in*a#indu+ue. He $as a"!e to t#ansa't $ith a 'e#tain o(on- e#na#do $ho

#e(#esented himse!/ as sa!es #e(#esentative o/ To%ota. Then and the#e,

e#na#do $as a"!e to assu#e Sosa that a unit $ou!d "e #ead% /o# (i'0 u(

$hi'h made the !atte# si-ned theso

'a!!ed 2A-#eements "et$een *#. Sosa and o(on- e#na#dio o/ To%ota

Sha$, In'3 45S6 in $hi'h a 177do$n(a%ment $as a!so made. It $as a!so

a-#eed u(on "% the (a#ties that the "a!an'e o/ the (u#'hase (#i'e $ou!d "e

(aid "% '#edit nan'in- th#ou-h .A. Finan'e. Come the a-#eed date and

time o/ (i'0 u(, the To%ota $as not a"!e to de!ive# the said 'a# due to some

#easons that nasu!ot an- unit n- i"an- ma!a0as. With this, Sosa as0ed /o#a #e/und o/ the do$n (a%ment he made "ut the To%ota #e/used to a''ede to

his demands. T#ia! Cou#t and CA #u!ed in /avo# o/ Sosa statin- that the said

2A-#eements "et$een *#. Sosa and o(on- e#na#dio o/ To%ota Sha$, In'3

is a (e#/e'ted 'ont#a't o/ sa!e and that the "#ea'h o/ $hi'h entit!es the Sosa

(a%ment /o# dama-es.

ISS;<:

W=N A-#eements "et$een *#. Sosa and

o(on- e#na#dio o/ To%ota Sha$, In' is a (e#/e'ted 'ont#a't o/ sa!e.

>;)IN: NO.

 A#t. 1?@8 o/ the Civi! Code (#ovides that

2% the 'ont#a't o/ sa!e one o/ the 'ont#a'tin- (a#ties

o"!i-ates himse!/ tot#ans/e# the o$ne#shi( o/ and to de!ive#

a dete#minatethin-, and the othe# to (a% the#e/o# a (#i'e 'e#tain inmone% o#

its e+uiva!ent. A 'ont#a't o/ sa!e ma% "e a"so!uteo# 'onditiona!.3

 And $ith that, 2The 'ont#a't o/ sa!e is (e#/e'ted at the moment the#e is ameetin- o/ mindsu(on the thin- $hi'h is the o"e't o/ the 'ont#a't and u(on

the (#i'e. F#om that moment, the (a#ties

ma% #e'i(#o'a!!% demand (e#/o#man'e, su"e't to the (#ovisions o/ the !a$

-ove#nin- the /o#m o/ 'ont#a'ts3 o/ A#t. 1?B@. The said 5S is not a 'ont#a't

o/ sa!e. No o"!i-ation on th e(a#t o/ To%ota to t#ans/e# o$ne#shi( o/ a

dete#minate thin- to Sosa and no 'o##e!ative o"!i-ation on the (a#t o/ the

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!atte# to (a% the#e/o#e a (#i'e 'e#tain a((ea#s the#ein. This Cou#t had

a!#ead% #u!ed that a denite a-#eement on the manne# o/ (a%ment o/ the

(#i'e is an essentia! e!ement in the /o#mation o/ a "indin- and en/o#'ea"!e

'ont#a't o/ sa!e. This is so "e'ause the a-#eement as to the

manne# o/ (a%ment -oes into the (#i'e su'h that a disa-#eement on the

manne# o/ (a%ment is tantamount to a /ai!u#e to a-#ee on the (#i'e.

eniteness as to the (#i'e is an essentia! e!ement o/ a "indin- a-#eement

to se!! (e#sona! (#o(e#t%.

*o#eove#, said 5S o"vious!% sho$ed the a"sen'e o/ ameetin- o/ minds

"et$een To%ota and Sosa. Fo# one thin-, Sosa did not even si-n it. At

the most, it ma% on!% "e 'onside#ed as (a#t o/ the initia! (hase o/ the

-ene#ation o# ne-otiation sta-e o/ a 'ont#a't o/ sa!e sin'e it on!%

(#ovides/o# the date o/ do$n(a%ment and the "a!an'e o/ the(u#'hase (#i'e

to "e (aid. It is o"vious that the 5S $as a me#e (#o(osa! $hi'h $as

a"o#ted in !ieu o/ su"se+uent events. It /o!!o$s that the 5S

'#eated no demanda"!e #i-ht in /avo# o/ Sosa /o# the de!ive#% o/ the vehi'!e

to him, and its nonde!ive#% did not 'ause an% !e-a!!% indemnia"!e inu#%.

The a$a#d then o/ mo#a! and eDem(!a#% dama-es and atto#ne%Es /ees and

'osts o/ suit is $ithout !e-a! "asis