Practice question
A contract provides separate deliveries and payments for twelve monthly batches. One batch is defective. The buyer asserts that every installment defect automatically cancels the whole contract; the seller says no defect can ever justify ending it. Which is correct?
- Article 1583 requires examining the terms and circumstances to decide whether the breach is material to the whole or severable
- Every defect necessarily ends all installments
- No installment breach can ever be material
- The parties’ terms never matter
- Only the batch number determines the remedy
Legal references
- Civil Code, Article 1583: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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