ARRIETA v.

NARIC GR L-15645, 31 January 1964 FACTS On 19 May 1952, Paz and Vitaliado Arrieta participated in the public bidding called by NARI !or the "upply o! 2#,### $etric ton" o! %ur$e"e rice& Ad her bid o! '2#( per $etric ton )a" the lo)e"t, "he )a" a)arded the contract !or the "a$e& A" a re"ult o! the delay in the opening o! the letter o! credit by NARI , the allocation o! Arrieta*" "upplier in Rangoon )a" cancelled and the 5+ depo"it a$ounting to an e,ui-alent o! P2##,### )a" !or!eited& Arrieta endea-ored but !ailed to re"tore the cancelled %ur$e"e rice allocation, and thu" o!!ered .hailand rice in"tead& /uch o!!er )a" re0ected by NARI & /ub"e,uently, Arrieta "ent a letter to NARI , de$anding co$pen"ation !or the da$age" cau"ed her in the "u$ o! 1/'223,### repre"enting unrealized pro!it& .he de$and ha-ing been re0ected, "he in"tituted the ca"e& ISSUE 4hether the rate o! e5change to be applied in the con-er"ion i" that pre-ailing at the ti$e o! breach, or at the ti$e the obligation )a" incurred, or on the pro$ulgation o! the deci"ion& HELD A" pronounced in 6a"tboard Na-igation -"& I"$ael, i! there i" any agree$ent to pay an obligation in the currency other than Philippine legal tender, the "a$e i" null and -oid a" contrary to public policy 7RA 5298, and the $o"t that could be de$anded i" to pay "aid obligation in Philippine currency to be $ea"ured in the pre-ailing rate o! e5change at the ti$e the obligation )a" incurred& 9erein, the rate o! e5change to be applied i" that o! 1 :uly 1952, )hen the contract )a" e5ecuted&