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    The National Grains Authority (now National Food Authority) accepted an offer from Leon Soriano to sell palay grains up to a quota of 2,640 cavans. Soriano delivered 630 cavans but was not paid, with NFA claiming he was not a bona fide farmer. The courts found that Soriano was a bona fide farmer and that a contract of sale was formed when NFA accepted Soriano's offer by noting the quota in his records. While the goods were not fully inspected, acceptance referred to the agreement between the parties, not the specific goods delivered. Therefore, Soriano must be paid for the 630 cavans delivered under the contract.

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    The National Grains Authority (now National Food Authority) accepted an offer from Leon Soriano to sell palay grains up to a quota of 2,640 cavans. Soriano delivered 630 cavans but was not paid, with NFA claiming he was not a bona fide farmer. The courts found that Soriano was a bona fide farmer and that a contract of sale was formed when NFA accepted Soriano's offer by noting the quota in his records. While the goods were not fully inspected, acceptance referred to the agreement between the parties, not the specific goods delivered. Therefore, Soriano must be paid for the 630 cavans delivered under the contract.

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    95 views2 pages

    NGA v. IAC

    Uploaded by

    kook
    The National Grains Authority (now National Food Authority) accepted an offer from Leon Soriano to sell palay grains up to a quota of 2,640 cavans. Soriano delivered 630 cavans but was not paid, with NFA claiming he was not a bona fide farmer. The courts found that Soriano was a bona fide farmer and that a contract of sale was formed when NFA accepted Soriano's offer by noting the quota in his records. While the goods were not fully inspected, acceptance referred to the agreement between the parties, not the specific goods delivered. Therefore, Soriano must be paid for the 630 cavans delivered under the contract.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    SALES

    [G.R. No. 74470 March 8, 1989]


    NATIONAL GRAINS AUTHORITY and WILLLAM CABAL, petitioners
    vs.
    INTERMEDIATE APPELLATE COURT and LEON SORIANO, respondent

    FACTS:
    National Grains Authority (now National Food Authority, NFA for short) is a govt agency created under PD
    No. 4 which has an incidental function of buying palay grains from qualified farmers.
    On August 23, 1979, private respondent Leon Soriano offered to sell palay grains to the NFA, through
    William Cabal, the Provincial Manager of NFA stationed at Tuguegarao, Cagayan. He submitted the
    documents required by the NFA for pre-qualifying as a seller, namely:
    Farmer's Information Sheet accomplished by Soriano and certified by a Bureau of Agricultural
    Extension (BAEX) technician, Napoleon Callangan;
    Xerox copies of 4 tax declarations of the riceland leased to him and copies of the lease contract
    between him and Judge Concepcion Salud; and
    his Residence Tax Certificate
    Soriano's documents were processed and accordingly, he was given a quota of 2,640 cavans of palay. The
    quota represented the maximum number of cavans of palay that Soriano may sell to the NFA.
    Soriano delivered 630 cavans of palay. The palay were not rebagged, classified and weighed.
    When Soriano demanded payment, he was informed that its payment will be held in abeyance since Mr.
    Cabal was still investigating on an information he received:
    that Soriano was not a bona tide farmer; and
    the palay delivered by him was not produced from his farmland but was taken from the warehouse
    of a rice trader, Ben de Guzman.
    On August 28, 1979, Cabal wrote Soriano advising him to withdraw from the NFA warehouse the 630
    cavans Soriano delivered stating that NFA CANNOT legally accept the said delivery on the basis of the
    subsequent certification of the BAEX technician (Callangan) that Soriano is not a bona fide farmer.
    Instead of withdrawing the 630 cavans of palay, Soriano insisted that payment. He then filed a complaint
    for specific performance and/or collection of money with damages on November 2, 1979, against the NFA
    and Mr. Cabal, Provincial Manager of NFA with the CFI of Tuguegarao.
    Meanwhile, by agreement of the parties and upon order of the trial court, the 630 cavans of palay in
    question were withdrawn from the warehouse of NFA.

    TC: ordered BFA to pay Soriano the amount 47,250.00

    IAC: upheld the decision of TC

    In their petition, petitioners contend that:

    the 630 cavans of palay delivered by Soriano on August 23, 1979 was made only for purposes of
    having it offered for sale

    rebagging is the initial operative act signifying acceptance, and acceptance will be considered
    complete only after the preparation of the Warehouse Stock Receipt (WSR). When the 630 cavans
    of palay were brought by Soriano to the Carig warehouse of NFA they were only offered for sale.
    Since the same were NOT rebagged, classified and weighed in accordance with the palay
    procurement program of NFA, there was NO acceptance of the offer which, to petitioners' mind is
    a clear case of solicitation or an unaccepted offer to sell.

    FEBLE SANTIAGO
    SALES
    ISSUE: WON there was a contract of sale

    SC:
    There was a contract of sale. The requisites of a contract and of a sale are fully met.

    In the case at bar, Soriano initially offered to sell palay grains produced in his farmland to NFA. When the
    latter accepted the offer by noting in Soriano's Farmer's Information Sheet a quota of 2,640 cavans, there
    was already a meeting of the minds between the parties.
    The object of the contract, being the palay grains produced in Soriano's farmland and the NFA was to pay
    the same depending upon its quality. The fact that the exact number of cavans of palay to be delivered has
    not been determined does NOT affect the perfection of the contract (see Art. 1349).
    In this case, there was NO need for NFA and Soriano to enter into a new contract to determine the exact
    number of cavans of palay to be sold. Soriano can deliver so much of his produce as long as it does not
    exceed 2,640 cavans.
    The acceptance referred to which determines consent is the acceptance of the offer of one party by the
    other and not of the goods delivered as contended by petitioners.
    The reason why NFA initially refused acceptance of the 630 cavans of palay delivered by Soriano is that it
    (NFA) cannot legally accept the said delivery because Soriano is allegedly not a bona fide farmer. The trial
    court and the appellate court found that Soriano was a bona fide farmer and therefore, he was qualified to
    sell palay grains to NFA.

    FEBLE SANTIAGO

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