If some stipulation of any contract should admit of several meanings, it shall be understood as bearing that import which is most adequate to render it effectual. (1284)
Kung ang ilang mga kasunduan sa kontrata ay dapat umamin ng ilang kahulugan, ito ay dapat intindihin bilang responsibilidad na ang import na kung saan ay pinaka-sapat upang magbigay mabunga. (1284)
| CASE : L. O. HIBBERD, plaintiff-appellant, vs. ESTATE OF JAMES P. MCELROY, defendant-appellee. G.R. No. L-8170 August 27, 1913 (TRENT, J) |
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| FACTS | PETITIONER: ; Hibberd; Appellants,RESPONDENT; Mc Elroy; Appellee
statement of facts and the contract entered into on November 25, 1910, by and between the plaintiff and the deceased. The pertinent parts of these document are as follows: 1. that the assessment work mentioned in said claims has been performed and salary of the watchman therein mentioned has been paid; that the mining property mentioned in the contract was operated for the first year under the terms of the contract, and as a result of such operation the claimant, Mr. Hibberd, suffered a loss, and that it is impossible to operate the property at a profit; that after the expiration of the first year’s operation and after ceasing the further development of the property the claimant gave notice to the administrator requesting that they performed their share of the assessment work; but that the administrator refused to perform his share of the assessment work and that no part of the claim for his share of such assessment work has been paid. (Stipulation of facts.) 2. that the said L. O. Hibberd shall have the exclusive right to the possession of the said mining claims during the period of one year to commence from date of this instrument and shall have the sole and exclusive right to exploit the same and take all the profits of such exploitation unto himself as his own and exclusive individual property, and for that purpose shall have the right to make use of all the improvements now in and upon any of the above mentioned mining claims. (Contract.) 3.that if the said J.P. McElroy at the expiration of one year from the date of this instrument should not be in sufficiently good health to be himself upon said claims and assume co-management thereof with the said L. O. Hibberd, then the said L. O. Hibberd shall continue in the exclusive possession, occupation, management and exploitation of the said mining claims and their improvements and after paying all expenses of the exploitation shall pay one-half of the net proceeds monthly to the said J.P. McElroy. (Contract.) |
| ISSUE/S | Whether or not the plaintiff is bound to do all of the annual assessment work upon the mining claims mentioned in the contract necessary to secure patents therefor, |
| LAWS | Article 1373 If some stipulation of any contract should admit of several meaning, it shall be understood as bearing that import which is most adequate to render if effectual. |
| HOLDINGS | 1 The administrator should have renounced all interest in the property at the time demand was made upon him to contribute his share of the assessment work in order to have escaped the absolute obligation imposed upon him by the terms of the contract and the law to reimburse the plaintiff for the estate’s share of the expense incurred for the joint benefit of the coowner.2. This was clearly intended to be paid out of the proceeds of the operation of the property whether managed by the partners jointly or by Hibberd alone on account of McElroy’s inability to participate in the management by reason of illness or death.
3.In default of any proceeds of operation the language of the contract and the law imply a joint obligation to do the annual assessment work as coowners and managers or in the event of the disability or death of McElroy an obligation on his part or that of his administrator to contribute one-half of the expense which the plaintiff was bound to incur to protect his possession held for the joint benefit of himself and his cotenant in accordance with the terms of article 396, supra. |
Obligations and Contracts 