Case Digest: Tiu Suico vs Simeon Habana, G.R. No. L-21106

Tiu Suico vs Simeon Habana, G.R. No. L-21106, February 21, 1924

Subject: Obligations and Contracts

FACTS

Habana engaged Suico to construct a building for him. In the process of the construction, many written alterations were agreed upon and really made, but it was proved that essentially, the plans followed were the original plans. It must be stated that in the contract, a specific amount for the construction was agreed upon. Later, when the building was finished, the contractor wanted to abandon the original price on the ground that the alterations in the building had caused an abandonment or a novation of the old contract. The contractor therefore wanted to be paid, not on the basis of the contract, but on the basis of quantum meruit. The owner did not consent to this. 

ISSUE

Whether or not there was novation.

RULING

No, there was no novation here.

Under Art. 1724 of the New Civil Code, the contractor cannot demand an increase in the price unless the change in the plans and specifications was authorized in writing and the additional price to be paid was also determined in writing by both parties.

In this case, the old contract was not abandoned since, after all, the original plans were followed. Therefore, without the consent of the owner, the contractor cannot treat the old contract as abandoned. The contractor, without the consent of the owner, cannot recover on the basis of quantum meruit (on the work done). Rather, the contract price will form the basis for payment, plus the cost of the alterations.