Question: I have a sales purchase agreement contract signed by my client, but she has not fulfilled her part of the contract for months. Is there any remedy by law to compel her to honor the contract, or a law to make her pay for damages that were incurred because of her non-performance of the contract? Does breach of contract have criminal liability in the Philippines?
Answer:
Assessing the Breach: Initially, it's important to evaluate the terms of the contract and the nature and extent of the breach. Is the breach material, meaning has it substantially violated the essential terms of the contract?
Communication and Negotiation: If a breach is identified, try to communicate with the other party and attempt to negotiate a resolution before seeking legal remedies. This might include a renegotiation of the terms or a compromise agreement.
Demand Letter: You may send a formal demand letter to the defaulting party, stating the obligations and specifying the breach, as well as the remedies sought.
Civil Remedies: In the event that negotiation fails, civil remedies are available under the Civil Code of the Philippines. This may include specific performance, rescission, or claims for damages. Specific performance compels the party to fulfill her obligations, while rescission can nullify the contract, and damages may compensate for the losses incurred.
Arbitration or Mediation: If the contract includes a clause for arbitration or mediation, these alternative dispute resolution mechanisms can be pursued.
Filing a Civil Case: If other methods fail, a civil case may be filed in court. It's advisable to consult a lawyer who specializes in contract law to assess the situation and represent your interests.
Criminal Liability: Generally, breach of contract in the Philippines is a civil matter. Criminal liability typically does not arise from a mere breach of a private contract. However, if there's fraudulent or malicious intent involved, other criminal laws might apply.
Statute of Limitations: Note that civil actions for breach of contract have a prescriptive period, so it's essential to act promptly.
In conclusion, there are several legal remedies to address a breach of a sales purchase agreement in the Philippines, ranging from negotiation and demand letters to civil litigation. The route taken will depend on the circumstances of the breach, the terms of the contract, and the desired outcome. Consulting a legal professional can help in deciding the best course of action. Breach of contract itself generally does not carry criminal liability, but related criminal conduct may be actionable under other laws.