Lirag Textile, Inc. and Felix K. Lirag vs Court of Appeals and Cristan Alcantara, GR No. L-30736, July 11, 1975
Subject: Obligations and Contracts
FACTS
There is an express agreement
between petitioner Lirag Textile Mills, Inc. and private respondent Cristan
Alcantara as to the period of the latter's employment in the former's firm,
that definite period starting from Alcantara's employment up to the time
Alcantara may voluntarily resign or when petitioner Lirag Textile Mills may
remove Alcantara for a valid cause or causes.
Lirag Textile Mills, Inc.
terminated Alcantara without valid cause.
ISSUE
Whether or not Lirag Textile,
Inc. committed a breach of contract which made it liable to Alcantara for
damages.
RULING
Yes, Lirag Textile, Inc. committed a breach of
contract which made it liable to Alcantara for damages
Under the law (Art 1193), obligations for whose
fulfillment a day certain has been fixed, shall be demandable only when that
day comes. Obligations with a resolutory period take effect at once, but
terminate upon arrival of the day certain. A day certain is understood to be
that which must necessarily come, although it may not be known when. If the
uncertainty consists in whether the day will come or not, the obligation is
conditional, and it shall be regulated by the rules of Art 1192.
In this case, Lirag Textile Mills, Inc. thereby
committed a breach of contract which made it liable to Alcantara for damages.
In an action by Alcantara for damages, RA 1052 as amended (the Termination Pay
Law when there is no time fixed for employment) will not apply because there is
an express agreement as to the period of Alcantara’s employment which is up to
the time Alcantara may voluntarily resign, or when the employer removes
Alcantary for a valid cause. Thus, the employment has a period subject only to
the resolutory condition of resignation or removal for cause. The findings of
the court states otherwise, the employer terminated Alcantara’s employment
without valid cause hence valid ground for breach of contract making it liable
for damages.
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