Practice question
An equipment maker substantially fails to fabricate the promised unit and the customer substantially fails to make the reciprocal required payment. The court finds that both breached but cannot determine who breached first. Assuming Article1192 governs, what result follows?
- The contract is deemed extinguished and each bears its own damages
- The maker necessarily receives all claimed damages
- The customer necessarily receives all claimed damages
- Both receive punitive damages automatically
- The contract must remain enforceable forever
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1165–1166,1172,1191–1192.
- Ong v Bogñalbal GR149140 September12,2006 MAIN: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/42229 Article1192 equitable tempering.
- Goldloop Properties v GSIS GR171076 August1,2012 MAIN: https://lawphil.net/judjuris/juri2012/aug2012/gr_171076_2012.html Article1192 uncertain first breach.
Answer this question in flashcards to review your response and continue practicing.