ACE-AGRO V.

CA ( Bottlecaps)
Ace agro was engaged in the service of cleaning bottles of Cosmos bottling. A fire
burnt down the warehouse. Cosmos unilaterally terminated bottle cleaning contract.
Ace agro asked for an extension of the contract because of the burnt warehouse
where they clean the bottles.
In this case, Ace-agro cannot ask for an extension of the contract.
The suspension of work was due to a fortuitous event, there was no justification for
their demand for an extension.
In case of a fortuitous event the term of the contract shall be extended by the period
corresponding to the duration of the force majeure or, an alternative would be as long
as the fortuitous event subsists then the term of the contract shall be suspended.
However, a fortuitous event does not automatically extend the period.
In this case, the interruption would not necessitate or entitle the contractor to
an extension. Its a reiteration of the general rule: it exempts the parties from
liability for failure to perform their respective obligations. Cosmos was
exempted from having to provide an extension to Ace Agro.
( Look at the case of Tanguiling, in this case the entire period of the contract was
meant for the construction of the windmill. If a fortuitous event occurred here, then an
extension may be granted. But her in Cosmos, it was bottle cleaning! Every time a
bottle was cleaned, a prestation was completed! Extension of the contract was not
proper.)