G.R. No. 96202. April 13, 1999.
ROSELLA D. CANQUE, petitioner, vs. THE COURT OF APPEALS and SOCOR CONSTRUCTION CORPORATION, respondents.

FACTS

Petitioner Rosella D. Canque, doing business as RDC Construction, entered into two contracts with private respondent Socor Construction Corporation for the supply and laying of bituminous materials for her government road projects. The contracts stipulated payment based on the actual weight in metric tons delivered and accepted by the Ministry of Public Works and Highways (MPWH). Private respondent billed petitioner for P299,717.75 as the outstanding balance. Petitioner refused payment, contending that private respondent failed to submit the required delivery receipts showing MPWH acceptance as a condition precedent for payment.
The Regional Trial Court ruled in favor of private respondent, ordering petitioner to pay the principal sum with 12% annual interest. The Court of Appeals affirmed the decision, giving credence to private respondent’s Book of Collectible Accounts as an exception to the hearsay rule for entries made in the regular course of business. Petitioner appealed, arguing the book was inadmissible and that the required delivery receipts were not presented.

ISSUE

Whether the Court of Appeals erred in affirming the trial court’s decision ordering petitioner to pay the claimed amount based on the evidence presented, particularly the Book of Collectible Accounts, despite the alleged non-fulfillment of the contractual condition for payment.

RULING

The Supreme Court denied the petition and affirmed the appellate court’s decision. The legal logic is twofold. First, on admissibility, the Book of Collectible Accounts was properly admitted under Rule 130, Section 43 (formerly Section 37) of the Rules of Court as an exception to the hearsay rule for entries made in the regular course of business. The bookkeeper who made the entries testified, and while she lacked personal knowledge of every transaction, the law does not require the entrant to have such knowledge if the entries were made under a duty and based on reports of employees with a duty to report. The entries were thus prima facie evidence of the facts stated.
Second, on the merits, petitioner’s obligation to pay was deemed complied with under Article 1235 of the Civil Code. Petitioner had accepted previous billings and made partial payments totaling about P1.4 million without demanding the delivery receipts or protesting the performance. Her silence and acceptance of benefits constituted a waiver of the contractual condition. Furthermore, petitioner had collected the full project costs from the government, and requiring strict presentation of receipts under these circumstances would result in unjust enrichment at the expense of private respondent who had substantially performed its obligations.