Reparations Commission v.

Universal Deep Sea Fishing

Corporation
A.M. No. 21901-96
June 27, 1978
J. Concepcion Jr.
Prepared by: Ayson, Paul
Facts:
The Reparations Commission awarded six (6) trawl boats to the
Universal Deep-Sea Fishing Corporation which were delivered two at a
time, each delivery being covered by a Contract of Conditional Purchase
and Sale providing for identical schedules of payments the first
installment representing 10% of the total cost was to be paid 24 months
after delivery and the balance of the total cost to be paid in ten (10)
equal installments, which, in the schedule were numbered as "1", "2",
"3", etc., the first of which was due one year after the first installment.
When the Reparations Commission sued Universal and its surety to
recover various amounts of money due under the contracts, they claimed
that the amounts were not yet due and demandable. Universal alleged
that there was an obscurity in the terms of the contracts in question
which was caused by the plaintiff as to the amounts and due dates of the
first installments which should have been first fixed before the creditor
could demand its payment from the debtor, specifically referring to the
schedule of payments which allegedly indicated two (2) due dates for the
payment of the first installment.

Issue:
Whether or not judgment, first installments under judgment, three (3)
contracts of conditional purchase and sale of reparations goods were
already due and demandable when judgment, complaint was filed.
Held: Yes
Ratio:
The Supreme Court found the terms of the contracts clear and left no
doubt as to the intent of the contracting parties that the first installment
due 24 months after delivery was different from the first ten (10) equal
yearly installment of the balance of the purchase price (which are not
designated as "first", "second", "third", etc., installments).