Cited Laws
TL;DR — Ruling
WHEREFORE, foregoing premises considered, this court declares that: 1). with respect to the subject Contract to Print, petitioner is deemed to be an unpaid seller within the definition of Article 1525 of the New Civil Code; 2). anent to the 210,000 copies of Developing Reading Power (DRP) series and 91,000 copies of Pagpapaunlad ng Kasanayan sa Pag-babasa (PKP) series, petitioner, by virtue of Article 1526: a.
WHEREFORE, foregoing premises considered, this court declares that: 1). with respect to the subject Contract to Print, petitioner is deemed to be an unpaid seller within the definition of Article 1525 of the New Civil Code; 2). anent to the 210,000 copies of Developing Reading Power (DRP) series and 91,000 copies of Pagpapaunlad ng Kasanayan sa Pag-babasa (PKP) series, petitioner, by virtue of Article 1526: a. has a lien on the textbooks or right to retain them for the cost of printing and other costs while it is in possession of said textbooks; b. has a right to resale of these textbooks; c. has a right to rescind the contract to print. 3). by virtue of Article 1533, and considering that respondent has been in default for an unreasonable time, petitioner, as an unpaid seller having the right of lien and to resell the goods, petitioner shall not thereafter be liable to respondent, upon the contract of sale for any profit made for such resale, but may recover from the respondent damages for any loss occasioned by the breach of the contract of sale; 4). by virtue of the first sale doctrine, respondent, upon default of payment has parted with all right to control the sale of it, including and more especially copyright over the subject textbooks. Petitioner, upon obtaining the copies by operation of law, may now sell them again without authority from respondent. And considering that the textbooks have been stored in China, and that these textbooks were written for Philippine consumption, the right to resale of these textbooks shall carry with it the necessary right to import the same; and 5). finding the documents to be in order, the court declares the following document as legally binding: a. Cover Note from the China Council for the Promotion of International Trade/China Chamber of International Commerce (Annex "H" of the Petition); b. the Authority to Enter into Contracts to Market and Sell the textbooks subject of this case issued by Fujian to MITC (Annex "I" of the Petition); c. the authentication issued by the China Council for the Promotion of International Trade/China Chamber of International Commerce certifying that the seal of Fujian on the Authority to Enter into Contracts to Market and Sell the textbooks is genuine (Annex "J" of the Petition); d. the authentication issued by the Consulate General of the Philippines in Xiamen, China certifying that the signature and seal of Wang Yahong appearing on the authentication issued by the China Council for the Promotion of International Trade / China Chamber of International Commerce are genuine (Annex "K" of the Petition). No pronouncement as to costs. SO ORDERED.