G.R. No. L‑3388
November 22, 1906

PARTIES Plaintiff‑appellee: Tatsusaburo Yegawa; Defendants‑appellants: George Green et al.

—

FACTS
1. Contract with the Government On 16 Mar 1904 the defendants entered into a contract with the United States Army’s constructing quartermaster to erect 65 frame buildings at Fort William McKinley, Manila.
2. Sub‑contract with Plaintiff On 20 Apr 1904 the defendants contracted the plaintiff to construct 16 of those buildings for ₱1,450 each, supplying all necessary materials and requiring completion within 8 months.
3. Defendants’ Breach The defendants failed to deliver the required materials (specifically, transportation of material), causing the plaintiff to be unable to finish the work within the stipulated period.
4. Work Completed Evidence showed the plaintiff had completed 61 % of the work on the 16 buildings when work was halted.
5. Payments Received The plaintiff had been paid ₱12,228 by the defendants; the contract price for full performance was ₱23,200.

—

ISSUE
Whether the defendants’ failure to supply the contractual materials excuses the plaintiff from his performance obligation and entitles him to recover the unpaid portion of the contract price.

—

RULING
The Court of First Instance correctly found that the defendants’ breach (non‑delivery of material) materially prevented the plaintiff from completing his part of the contract. Under the principles of contract law, a party whose performance is rendered impossible by the other’s breach is entitled to recover the value of the work actually performed.

Calculation: 61 % of ₱23,200 = ₱14,152.
Amount already received = ₱12,228.
Balance due to plaintiff = ₱14,152 ₱12,228 = ₱1,924.

The lower court’s judgment awarding the plaintiff ₱1,924 plus costs is affirmed. No special damages were proven; thus the award is limited to the unpaid contractual amount.

Disposition: Judgment affirmed; costs awarded; case remanded for entry of judgment and further procedural actions.