The revelations Perfume and Cosmetics Inc. v.

Prince Rogers Nelson

What can you say in this case?

Beach of Contract is defined as the failure by one party to live up to the obligations in, or the terms of
the contract

Under Article 2226 of the Civil Code Liquidated damages are those agreed upon by the parties to a
contract, to be paid in case of breach thereof. The parties to a contract are allowed to stipulate on
liquidated damges to be pard in case of a breach. It is attached to an obligation in order to ensure
performance and has a double function:

(1) To provide for liquidated damages, and

(2) To strengthen the coercive force of the obligation by the obligation by the threat of greater
responsibility in event of breach

The amount agreed upon answers for damages suffered by owner due to delays in the completion of the
project. As pre-condition to such an award, however, there must be proof of the fact of delay in the
performance of the obligation. (Atlantic Erectors Inc., Vs Court of Appeals, G.R No. 170732, 11 October
2012)

Thw main crime involving fraud in the Philippines is “swindling” (estafa), which punishable under Article
315 of the Penal Code. This offence involves defrauding another through the means of (among others):

Misappropriating or converting to the prejudice of another, money, goods or other personal property
received by the offender in trust or commission, or of administration or under any other any obligation
involving the duty to deliver or return such money/goods/property.

Taking undue advantage of the signature of the offended party in blank, and by writing any document
above such signature in blank, to the prejudice of another (forgery).

Using a fictitious name, of falsely pretending of possess qualifications, property, credit, agency, business
or imaginary transactions, or by means similar deceits.

Remedies

There are two types of remedies that a party can receive for breach of contract: legal remedies or
equitable remedies. Legal remedies refer to monetary award damages, such as compensatory, nominal,
and liquidated damages.
In contrast, equitable remedies are issued by a court when legal remedy will not sufficiently make up for
the damage done. This includes remedies, such as specific performance, reformation, or rescission.

The difference between the remedies awarded will dictate what the non;breaching party can expect to
receive and what the breaching party will be required to do as punishment.