Ong Jang Chuan v.

Wise

FACTS:

 This is an appeal from the judgment of the Court of First Instance in Manila condemning
defendant (Wise & Co.) to pay plaintiff (Ong Jang Chuan) P 1, 237.50 with interests and
damages for breach of contract.
 Wise & Co. and Ong Jang Chuan entered into a contract wherein it was stated that the
former sold 1000 sacks of flour, “Mano” brand, at the net price of P11.05 per barrel, the
expenses of transportation to be borne by purchaser (Ong Jang Chuan). 500 sacks to be
delivered in September and 500 in October. Payment be made within 30 days from the date
of the delivery.
 Wise & Co. failed to deliver the sacks of flour.
 In the trial court, it has been established by a preponderance of evidence that the
reason for the nonfulfillment of the contract was that the “Mano” brand of flour which was
bound to be delivered had to come from Australia, and at the time of the execution of the
contract, Wise & Co. did not have the sufficient stock of the said brand of flour.
 It was also found that at that time, Australia prohibited the exportation of flour because
of the scarcity of grain in such country due to a war between Great Britain(which Australia is
an integral part thereto) and Germany.
 In this appeal, it is urged that the trial court erred that the contract was an agreement
to sell and not a perfected sale.

ISSUE:

WON the contract was a perfected sale

HELD:
 The flour mentioned in the contract was not "physically segregated from all other
articles." In fact, the defendant did not have in its possession in Manila, at the time the
contract was entered into, the 1,000 sacks of flour which it agreed to deliver in September
and October.
 Under the rule laid down in the case of Yu Tek & Co., and the cases cited in that opinion,
it is clear that the sale here in question was not a perfected one.