Marlene Dauden-Hernaez vs Hon Walfrido de los Angeles, et.al., GR No. L-27010, April 30, 1969
Subject: Obligations and Contracts
FACTS
Marlene
Dauden-Hernaez, a movie actress, sued a movie company (the Hollywood Far East
Productions, Inc.) and its President and General Manager (Ramon Valenzuela), to
recover P14,700 representing a balance allegedly due her for her services as a
star in two movies, and to recover damages. The contract was an ORAL one. The
lower court dismissed the case on the ground that under Art. 1358 of the Civil
Code, since the contract price exceeded P500, the same should have been
evidenced by a written instrument.
ISSUE
Whether
or not the dismissal proper.
RULING
No,
the dismissal was not proper.
Under
Art. 1356 of NCC, all contracts are valid, regardless of form. There are only
two exceptions - first, when the contractual form is needed for validity as in
the case of a donation of real property which needs a public instrument;
secondly, when form is needed for enforceability under the Statute of Frauds.
The contract for her services falls under neither exception. The contracts
covered by Art. 1358 (such as her contract) are binding and enforceable by
action or suit despite the absence of any writing because said article nowhere
provides that the absence of written form will make the agreement invalid or
unenforceable.
In the
matter of form, the contractual system of our Civil Code still follows that of
the Spanish Civil Code of 1889 and of the "Ordenamiento de Alcala" of
upholding the spirit and intent of the parties over formalities; hence,
generally, oral contracts are valid and enforceable.
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