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MARIANO S. TUASON, Plaintiff-Appellant, vs. CRISANTO Marquez for the rescission of the contract.

His complaint is on
MARQUEZ, Defendant-Appellee. account of misrepresentation and fraud perpetrated by Marques in
G.R. No. L-20659 November 3, 1923 selling an electric light plant with a franchise when Marquez had
MALCOLM, J.: already given up his right to the franchise.

Facts: CFI rendered judgment for Marquez. Hence, this appeal.


On March 18, 1921, Crisanto Marquez, owner of the electric
plant in Lucena, Tayabas called Sucesores del Lucena Electric Issue:
(Lucena Electric Company) sold the electric light plant to Antonio WON the contract should be rescinded due to fraud
Tucson for PhP 14,000.00. A contract was executed before a notary
public. In the agreement, Tuason was to pay Marquez in two Held: No.
instalment; PhP 2,400.00 within the sixty days and PhP 12,000.00
within the year. The first installment was complied by Tucson but the The Court emphasized that the contract in making mention
second installment was not paid. of the property of the electric light company, merely renewed a
previous inventory of the property. Hence, the franchise was not the
Tuason was in possession of the plant from March 20, 1921 to determining cause of the purchase. The franchise was then in force
July 19, 1922 (16 months) under the management of Consolidated and the party should have ascertain its status by applying at the
Electric Company until it was sold to Gregorio Marquez by reason of office of the Public Utility Commissioner. The nondisclosure does not
judgment in the case of Levy Hermanos v. The Philippine Electric affect the formation of the contract or operate to discharge parties
Light Company. from their agreement, using the maxim caveat emptor. Moreover, it
was also ruled that Tuason was estopped by latches due to his delay
Fact of the case also provided that a franchise was given to in asserting his right and assenting to the existing conditions at bar.
Lucena Electric Company for 35 years when Crisanto Marquez Tucson operated the electric light plant for about sixteen months
purchased the plant in 1913-1914. However, the company did not without question; he made the first payment on the contract without
function effectively evidenced on the constant complaint from the protest; he bestirred himself to secure what damages he could from
municipal authorities of Lucena. This led Crisanto to announce his the defendant only after the venture had proved disastrous and only
intention to give-up the franchise. On March 29, 1921, prior to the after the property had passed into the hands of a third party.
purchase contract, the Public Utility Commissioner cancelled the
franchise of the company. Notes:

Tuason and his outfit were permitted to operate the company maxim caveat-"let the buyer beware.; the buyer assumes the risk
pursuant to a special license until a new franchise is obtained. that a product may fail to meet expectations or have defects; the
Subsequently, the Commissioner granted a new franchise with principle that the buyer alone is responsible for checking the quality
conditions, which amounted to a renovation of the entire plant. It and suitability of goods before a purchase is made.
was then that Tucson decided to file a complaint against Crisanto

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