Private Respondent Bernard Oseraos acting through his authorized agents had several transactions with Legaspi Oil Co. for the sale of copra to the latter. In 1976, Oseraos’ agent signed a contract for the sale of copra at P82.00/100 kg with delivery terms of 20 days. However, the period to deliver had lapsed and the respondent delivered only 46,334 kg of copra, leaving an undelivered balance of 53,666 kg. Petitioner made repeated demands but Oseraos elected to ignore the same. A final demand with a warning was issued that should Oseraos fail to complete the delivery, the petitioner would purchase the balance at the open market and charge the price differential to the latter, still, Oseraos failed to deliver the remaining balance. Hence, the petitioner exercised its right under the contract and purchased the undelivered balance at the open market at the then prevailing price of P168.00/100 kg.

ISSUE:
Is Oseraos liable for damages arising from fraud or bad faith in deliberately breaching the contract of sale entered into by the parties? Explain the grounds for his liability, if any.

Answer rating: 100% (QA)

Yes Oseroas is liable for the damages arising from fraud or bad faith in deliberately breaching the ... View the full answer