GR L 15895; (November, 1920) (Digest)
G.R. No. L-15895, November 29, 1920
RAFAEL ENRIQUEZ, as administrator of the estate of the late Joaquin Ma. Herrer, plaintiff-appellant, vs. SUN LIFE ASSURANCE COMPANY OF CANADA, defendant-appellee.
FACTS:
On September 24, 1917, Joaquin Ma. Herrer applied for a life annuity with Sun Life Assurance Company of Canada, paying P6,000 two days later. He received a provisional receipt stating the application was subject to medical examination and approval by the company’s head office. The application was sent to Montreal, Canada, where the head office cabled acceptance to its Manila office on November 26, 1917. A policy was issued on December 4, 1917. On December 18, 1917, Herrer’s attorney wrote to withdraw the application. The Manila office replied the next day, stating the policy had been issued and notifying Herrer of the prior acceptance. This reply was received on December 21, 1917, but Herrer had died on December 20, 1917. The key factual dispute was whether Herrer received notice of acceptance on November 26, 1917. Evidence showed that a notification letter was prepared and signed in the Manila office but there was no proof it was actually mailed or received by Herrer.
ISSUE:
Whether a contract of life annuity was perfected between Herrer and Sun Life, given the lack of proof that the acceptance of his application was communicated to him.
RULING:
No, the contract was not perfected. The Supreme Court applied Article 1262 of the Civil Code, which provides that an acceptance by letter does not bind the offeror until it comes to his knowledge. Since the Insurance Act (Act No. 2427) was silent on the rules for acceptance, the Civil Code supplied the deficiency under Article 16 thereof. The Court found no satisfactory proof that the letter of acceptance was ever received by Herrer. The mere preparation and signing of the letter, without evidence of mailing or delivery, did not constitute effective communication of acceptance. Thus, there was no meeting of minds, and the contract was not consummated. The Court reversed the trial court’s judgment and ordered Sun Life to return the P6,000 to Herrer’s estate, with legal interest from November 20, 1918.