GR L 3572; (August, 1907) (Digest)
G.R. No. L‑3572
Facts:
– On 23 August 1904 the plaintiff (S.G. Larson) rented the steam launch Henry from the defendant (H. Brodek) for ₱450 per month, with ₱250 earmarked for repairs and an option to purchase the launch for ₱5,000.
– The parties later discovered that the ₱250 repair allowance had been inadvertently deducted from the monthly rent. They corrected this error by executing a second contract before a notary public on 24 August 1904.
– In the corrected contract, the purchase price clause originally read “₱5,000, Philippine currency.” The defendant, under his direction and in his presence, altered the wording by erasing “Philippine” and writing “United States,” effectively changing the stipulated price. The alteration was noted in the margin over the notary’s initials.
– The plaintiff alleged that the alteration was a post‑execution forgery and that he had never authorized it, while the defendant and the notary claimed the change had been made before signing.
– The plaintiff relied on the option, leased the launch to the Army quartermaster for nine months, and sought enforcement of the original purchase price.
Issue:
Whether the alteration of the purchase‑price clause in the corrected contract was made prior to its execution with the plaintiff’s consent, thereby determining the enforceable price of the option, or whether the alteration was a subsequent forgery rendering the original price of ₱5,000 enforceable.
Ruling:
The Supreme Court affirmed the trial court’s judgment, finding that the evidence did not establish the plaintiff’s consent to the alteration and that the contested change was a subsequent forgery. Accordingly, the original price of ₱5,000 as stipulated in the contract stands, and the lower court’s decision is upheld with costs.
