Fonacier was an owner/holder of 11 iron lode mineral claims known as the Dawahan Group And by deed of assignment, he assigned

d Gaite was his attorney in fact to enter into contracts with any individual or juridical corp for the exploration and development of the mining claims on a royalty basis Gaite executed a general assignment CONVEYING THE DEVELOPMENT AND EXPLOITATION of said mining claims to LARAP IRON MINES which he owns, on the same royalty basis Gaite pursued the business: opening and paving roads, making other improvements, in the end extracting 24,000 metric tons of iron ore But for some UNKNOWN REASON, Fonacier REVOKED THE POWER OF ATTORNEY HE GRANTED TO GAITE Gaite consented under certain conditions Thus REVOCATION OF POWER OF ATTORNEY AND CONTRACT wherein Gaite transferred to Fonacier o for 20,000, o plus 10% of the royalties that Fonacier would receive from all the mining claims, o all his rights and interests on all the roads, improvements and facilities o right to use Larap Iron Mines and its goodwill o all the records and docs relative to the mines o all rights over the 24,000 tons of iron ore that Gaite had already extracted for 75,000 to be paid by Fonacier --10,000 of which was paid upon signing --- balance 65,000 to be paid from and out of the first letter of credit covering the first shipment of iron ores and of the first amount derived from the local sale of iron ore made by the Larap Mines to secure the payment of the 65,000, Fonacier delivered to Gaite a SURETY BOND with himself as principal and the Larap mines and his stock holders as sureties o BUT GAITE REFUSED TO SIGN BOTH BOND AND THE REVOCATION UNLESS ANOTHER BOD UNDER WRITTEN BY A BONDING COMPANY WAS PUT UP BY FONACIER TO SECURE THE SAME 65,000

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Hence, another bond with Far Eastern Surety and Insurance Co was executed BUT IT PROVIDED THAT THE LIABILITY OF THE SURETY COMPANY WOULD ATTACH ONLY WHEN THERE HAD BEEN AN ACTUAL SALE OF IRON ORE BY THE LARAP MINES FOR 65,000 and that LIABILITY OF THE SURETY COMPANY WOULD AUTOMATICALLY EXPIRE ON DECEMBER 18, 1955 Both bonds were attached to the revocation ON THE SAME DAY THE PARTIES SIGNED THE REVOCATION, Fonacier entered into a CONTRACT OF MINING OPERATION ceding and transferring the rights that the GENERAL ASSIGNMENT conveyed to Larap- so derecho na, same terms Far Easterns bond expired, no sale of the 24,000 tons of iron ore, 65,000 balance unpaid by Fonacier nor his sureties Gaite filed a complaint with CFI for the balance, damages etc Fonacier defense that since the condition re payment of the 65,000 had not yet been fulfilled, the obligation was not yet due and demandable only 7,537 tons were actually delivered and not the 24,000 tons

Issues: 1. WON obligation is due and demandable when the defendants failed to renew the surety bond underwritten by the Insurance company RTC: obligation was with a term- paid upon sale and the sale was to be effected within one year