Sales Week 3Dacion en
PagoPhilippineLawinBusCo.(Lawin)vsCADoctrine:Nature:RTC- Suit to
claim for a sum of money against Lawin, case was dismissedCA-
Reversed RTC and ruled that Lawin has to pay ACCSC- Affirmed CAs
decision andorderedFacts:Lawin initially loaned from Advance
Capital Corp. (ACC) Php 8Mpayable w/in1 yr and guaranteed by a
chattel mortgage of Lawins 9 buses.Lawin was indefault in its
payments and was able to pay onlyPhp 1.8M.Lawin obtained its second
loan of 2Mpayable in one month under apromissory note. Lawin was
indefault again hence it asked ACCfor arestructuring of the loan
despite this Lawinwas still not able to pay. Thebuses for
foreclosed and it was sold for2M.ACC sent Lawin demand letters to
settleits indebtedness amounting to hp16,484,992.42
thensubsequently filed a suit for sum of money againstLawin. Lawin
in its defense said that therewas already an arrangement tosettle
the obligationoA. Sale of 9 buses and its proceeds will cover for
the full payment; ORoB. ACC will shoulder therehabilitation of
thebuses and the earnings ofthe operation will be then applied to
the loanIssue/Held:W/N there wasa dacion en pago bet. the parties?
NORatio:Dacion en Pago is aspecial mode of payment, the debtor
offers another thingto the creditor who accepts itas equivalent of
payment of theoutstandingobligation. It partakes the nature of a
sale whose essential elements area)consent b)object certain and c)
cause and thecontract is perfected at themoment of the meeting of
theminds of the parties.In this case there wasno meeting of the
minds between Lawin andACC thatthe obligation would be extinguished
by dacion en pago. Thereceipts showsthat the delivery of the 2
buses to ACC didnt transfer the ownership of thebus to ACC rather
they were deemed to be only as Lawins agent in the saleof the bus
whereby the proceeds are then to be applied as payment for
theloan
