10 Scra Cases
10 Scra Cases
10 Scra Cases
FACTS: Matic obtained from Manila City a concession to provide the lighting system
of Manila cemeteries on All Souls Day of 1934. The amount was P8,773 to be
guaranteed by Luzon Surety Co. Matic then authorized Quiogue to contract with
Mora Electric Co., Inc. for the installation materials and labor, and that both are
under the duty to pay P8,773 to the City of Manila (which Mora Electric was to take
from the payment made to it by Matic and Quiogue). When the business failed, the
parties did not pay the amount due to the City. Luzon Surety had to pay the said
amount, and so it filed a suit of recovery against Matic and Quiogue. Both
respondents also filed an action against Mora to recover P8,773 from the latter.
ISSUE: WON mora electric is liable to pay the city of Manila as stipulated in the
contract
RULING: The amount sought to be recovered is not claimed as a loss or profit, but
as the contribution which petitioner bound itself to make to the partnership and
which it was under a duty to pay, although it was paid instead by M and Q. The
liquidation of the partnership is not now being sought. Indeed, there is no reason for
such liquidation. While it is mentioned in the appealed decision that the business
produced a relevant amount, it doesnt appear that the parties have made a report,
as they have agreed to do, and it is not possible to determine whether there was a
profit or loss and what is the extent thereof and the measure of the respective
liability or benefit