Yu Tek v. Gonzales [G.R. No. 9935. February 1, 1915.

]
First Division, Trent (J): 4 concur, 1 dissents
Ponente: TRENT, J.:
Facts:

A written contract was executed between Basilio Gonzalez and Yu Tek and Co., where
Gonzales was obligated to deliver 600 piculs of sugar of the 1st and 2nd grade to Yu Tek,
within the period of 3 months (1 January-31 March 1912) at any place within the
municipality of Sta. Rosa, which Yu Tek & Co. or its representative may designate; and in
case, Gonnzales does not deliver, the contract will be rescinded and Gonzales shall be
obligated to return the P3,000 received and also the sum of P1,200 by way of indemnity
for loss and damages.

No sugar had been delivered to Yu Tek & Co. under this contract nor had it been able to
recover the P3,000.

Gonzales, in seeking to evade liability, invokes fortuitous event, alleging the total failure
of his crop.

Yu Tek & Co. filed a complaint against Gonzales, and prayed for judgment for the P3,000
and the additional P1,200. Judgment was rendered for P3,000 only, and from this
judgment both parties appealed.

Issue:

Whether or not there was perfected contract of sale

Held:

NO

The subject matter was not yet determinate. The sugar agreed upon has yet to be
segregated from all other articles.

That being the case, there was merely an executory agreementa promise of sale, and
not a contract of sale itself. Moreover, there was no stipulation that the sugar was to be
derived from his crop; he was at liberty to get it from whatever source he could find.

The obligation he incurred was for the delivery of the generic thing. Thus, he cannot
invoke force majeure under the maxim genus never perishes. His obligation to deliver the
sugar is not extinguished.

Yu Tek is thus entitled to rescind the contract and recover the money in addition to the
stipulated P1,200 as indemnity for losses.

This rule no longer holds true. Generic things may now be the subject matter of a contract of
sale provided that they have the quality of being DETERMINABLE at the perfection of the
contract.