"31 There is no such thing as an "action for breach of contract." The February 19, 2013 Order of the Regional Trial Court, Branch 17, Cebu City dismissing Civil Case No. 7691,39 provides that where the amount of the demand exceeds ₱100,000.00, exclusive of interest, damages of whatever kind, attorney's fees, litigation expenses, and costs, exclusive jurisdiction is lodged with the RTC. Complaint for Specific Performance or Damages Based on a Contract to Convey Real Property. . . 25 Ayala Life Assurance, Inc. v.Ray Burton Development Corporation, 515 Phil. [It is t]he actual accomplishment of a contract by a party bound to fulfill it. It argued that the RTC acted with grave abuse of discretion in dismissing Civil Case No. The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. 129, OTHERWISE KNOWN AS THE 'JUDICIARY REORGANIZATION ACT OF 1980. The party owed should include language that motivates the debtor to make a payment. 2 See Pacmac, Inc. v. Intermediate Appellate Court, 234 Phil. It is strongly recommended that you consult a lawyer and have a customized document drawn to suit your requirements. x x x, A case for breach of contract [sic] is a cause of action either for specific performance or rescission of contracts. CEB-39025 for lack of jurisdiction, stating: In the instant case, the plaintiffs complaint is for the recovery of damages for the alleged breach of contract. No partial payments will be accepted. CEB-39025 for lack of jurisdiction. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof. SPECIFIC PERFORMANCE . BRANCH ______ And even though this is not true in every state, by defaulting in all cases to the 30-day demand letter, you will avoid having to do as much jurisdiction-specific research before you begin. In it, you state what your dispute is and why you want to handle it in court. Respondent thus prayed, as fol1ows: WHEREFORE, premises considered, by reason of the above-mentioned breach of the subject dealer contract agreement made by the defendant, it is most respectfully prayed of the Honorable Court to order the said defendant to pay the following incidental and consequential damages to the plaintiff, to wit: a) TWO HUNDRED THOUSAND PESOS (PHP200,000.00) plus legal interest as incidental and consequential [sic] for violating Articles IV and XVI of the Remarkable Laundry Dealer Contract dated 08 September 2011. b) Thirty Thousand Pesos (₱30,000.00) as legal expenses. 8. vs. If one of the parties does not fulfill the terms, that party is in breach of the contract. CEB-39025 as an action for damages seeking to recover an amount below its jurisdictional limit. DEMAND FOR SPECIFIC PERFORMANCE We therefore demand hereby that you disclose the correct identity and the current mailing address (or the last known mailing address) for service of legal process upon the principal(s) responsible for: “wayne@mail.msen.com”, “James H. Daugherty” aka “jhdaugh@garnet.msen.com”, ENTITLED "AN ACT EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR THE PURPOSE BATAS PAMBANSA BLG. For attorney fees in an amount determined by the court to be reasonable as authorized by agreement and according to proof; 4. 14. Other than this letter, no additional demands will be made upon you to pay prior to suit being filed. de Atas. c) Thirty Thousand Pesos (₱30,000.00) as exemplary damages. State specific demands: The individual should not guess the amount they should pay. He may also seek rescission even after he has chosen fulfillment, if the latter should become impossible. According to respondent, said case is one whose subject matter is incapable of pecuniary estimation and that the damages prayed for therein are merely incidental thereto. When money isn't adequate to compensate a plaintiff for his loss, the plaintiff may seek specific performance. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been … Automatic charging shall become part of the billing on the services of the dealer outlet on cases where the minimum requirements on required kilos are not met. Respondent's complaint denominated On September 3, 2012, Remarkable Laundry and Dry Cleaning (respondent) filed a Complaint denominated as "Breach of Contract and Damages"6 against spouses Romeo and Ida Pajares (petitioners) before the RTC of Cebu City, which was docketed as Civil Case No. This is a pattern demand letter to request overdue cost. In fact, neither phrase appeared on or was used in the Complaint when, for purposes of clarity, respondent's counsels, who are presumed to be learned in law, could and should have used any of those phrases to indicate the proper designation of the Complaint. It [sic] further stated that they [sic] would just notify or advise the office when they are [sic] ready for the business again making the whole business endeavor totally dependent upon their [sic] whims and caprices. By writing a demand letter, you may get the same result — but without the stress of a lawsuit. 62, 68 (2002). Plaintiff Remarkable Laundry and Dry Cleaning Services, is a sole proprietorship business owned by Archemedes Solis with principal office address at PREDECO CMPD AS-Ostechi Bldg. 7. Otherwise, we will be constrained to file the necessary legal action against you to protect the interest of our client. 11. If you don’t require payment, state the precise task that should be carried out. If it is primarily for the recovery of a sum of money, the claim is considered capable of pecuniary estimation, and whether jurisdiction is in the municipal trial courts or in the courts of first instance would depend on the amount of the claim. a) TWO HUNDRED THOUSAND PESOS (PHP200,000.00) plus legal interest as incidental and consequential [damages] for violating Articles IV and XVI of the Remarkable Laundry Dealer Contract dated 08 SEP 2011; b) Thirty Thousand Pesos (₱30,000.00) as legal expenses; c) Thirty Thousand Pesos (₱30,000.00) as exemplary damages; d) Twenty Thousand Pesos (₱20,000.00) as cost of suit; e) Such other reliefs that the Honorable Court deems as just and equitable. In the letter, indicate a specific amount that the individual should pay. CV No. Ten [percent] (10%) interest charge per month will be collected on all unpaid obligations but should not be more than 45 days or an additional 10% on top of uncollected amount shall be imposed and shall earn additional 10% on the next succeeding months if it still remains unpaid. They asserted that in determining jurisdiction over the subject matter, the allegations in the Complaint and the principal relief in the prayer thereof must be considered; that since respondent merely prayed for the payment of damages in its Complaint and not a judgment on the claim of breach of contract, then jurisdiction should be determined based solely on the total amount of the claim or demand as alleged in the prayer; that while breach of contract may involve a claim for specific performance or rescission, neither relief was sought in respondent's Complaint; and, that respondent "chose to focus his [sic] primary relief on the payment of damages,"21 which is "the true, actual, and principal relief sought, and is not merely incidental to or a consequence of the alleged breach of contract. It held as follows: In determining the jurisdiction of an action whose subject is incapable of pecuniary estimation, the nature of the principal action or remedy sought must first be ascertained. In consideration [sic] for such renewal of franchise-dealership rights, the dealer outlet must have a minimum 200 kilos on a six-day or per week pick-up for the entire duration of the contract to FREE the dealer outlet from being charge [sic] Php200/week on falling below required minimum kilos per week of laundry materials. 19. 27 ARTICLE 1381. 36 BF Corporation v. Werdenherg International Corporation, G.R. Under the provisions of Batas Pambansa Blg. Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. Likewise, Article 1170 of the Civil Code of the Philippines [provides] that: 'Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof are liable for damages. for rescission of contract. In ruling that respondent's Complaint is incapable of pecuniary estimation and that the RTC has jurisdiction, the CA comported itself with the following ratiocination: A case for breach of contract [sic] is a cause of action either for specific performance or rescission of contracts. Important tips to write a demand or collection letter are following; Determine the tone of letter first of all. Rescission may also refer to a remedy granted by law to the contracting parties and sometimes even to third persons in order to secure reparation of damages caused them by a valid contract; by means of restoration of things to their condition in which they were prior to the celebration of the contract.27, In a line of cases, this Court held that –, In determining whether an action is one the subject matter of which is not capable of pecuniary estimation this Court has adopted the criterion of first ascertaining the nature of the principal action or remedy sought. CEB-39025 falls within the jurisdiction of the RTC pursuant to Section 19 of Batas Pambansa Blg. Breach of contract may also be the cause of action in a complaint for damages filed pursuant to Article 1170 of the Civil Code. No. The DEALER OUTLET must have a minimum 200 kilos on a six-day or per week pick-up for the entire duration of the contract to free the dealer outlet from being charge[d] Php 200/week on falling below required minimum kilos per week of laundry materials. Defendant should have opted to comply with the Pre-termination clause in the subject contract other than its [sic] unilateral and whimsical cessation of operations. Specific performance is ''[t]he remedy of requiring exact performance of a contract in the specific form in which it was made, or according to the precise terms agreed upon. Records disclose that you have an outstanding obligation with our client in the amount of Php100,000.00 inclusive of interest and surcharges. Any violation of the above-mentioned provisions shall result in the immediate termination of this agreement, without prejudice to any of the RL Main Operators rights or remedies granted to it by law. On December 11, 2013, the CA rendered the assailed Decision setting aside the February 19, 2013 Order of the RTC and remanding the case to the court a quo for further proceedings. Some sample demand or collection letters are also given below that will help you in customizing a demand or collection letter according to your need. 6. Basics of Specific Performance In a real estate contract, parties may agree to a contract, such as for the sale of a home. 951 (2007). SPOUSES ROMEO PAJARES and IDA T. PAJARES, Petitioners the specific performance of a contract for the delivery of personal property, which is not unique (such as heirlooms, and so forth)" is a misstatement of a rule of law, and that whether the remedy of specific performance can be successfully invoked has no relation to the charac-ter of the property involved. CEBU CITY. CEB-39025 be reinstated, petitioners in their Petition and Reply20 espouse the original findings of the RTC that Civil Case No. In the words of Innes J, Farmers' Co-op Socy (Reg) v Berry 1912 AD 350: "Prima facie every party to a binding agreement who is ready to carry out his own obligation under it has a right to demand from the other party, so far as it is possible, a performance of his undertaking in terms of the contract . Our Sample Demand Letters are presented in a way that they can be used both by company heads or corporate lawyers. Otherwise, jurisdiction belongs to the Municipal Trial Court.40, The above jurisdictional amount had been increased to ₱200,000.00 on March 20, 1999 and further raised to ₱300,000.00 on February 22, 2004 pursuant to Section 5 of RA 7691.41, Then in Administrative Circular No. 1191. The demand letter seeks either of the objectives: 1.) 39 AN ACT EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS, AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR THE PURPOSE BATAS PAMBANSA BLG. These Demand Letter Samples include the following: Final Demand for Payment; Draft includes a summary of a debtor’s account and how the company repeatedly demanded payment to no avail. Sample Special Power of Attorney to Sell Parcel of Land. But even if writing a formal demand letter isn't legally necessary, there are two reasons why sending one makes sense: In as many as one-third of all disputes, your demand letter … The larger deal never came to fruition. 5. 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