Republic of the PhilippinesSupreme CourtManilaSECOND DIVISIONTAN SHUY,Petitioner,- versus -SPOUSESGUILLERMOMAULAWIN and PARINGCARIO-MAULAWIN,Respondents.G.R. No. 190375Present:CARPIO, J., Chairperson,BRION,PEREZ,SERENO, andREYES, JJ.Promulgated:February 8, 2012x - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - xD E C I S I O NSERENO, J.:
Before the Court is a Petition for Review on Certiorarifiled under Rule 45 of theRules of Court, assailing the 31 July 2009 Decision and 13 November 2009 Resolutionof the Court of Appeals (CA).FactsPetitioner Tan Shuy is engaged in the business of buying copra and corn in the FourthDistrict of Quezon Province. According to Vicente Tan (Vicente), son of petitioner,whenever they would buy copra or corn from crop sellers, they would prepare and issueapesadain their favor. A pesadais a document containing details of the transaction,including the date of sale, the weight of the crop delivered, the trucking cost, and the netprice of the crop. He then explained that when a pesadacontained the annotation pd onthe total amount of the purchase price, it meant that the crop delivered had alreadybeen paid for by petitioner.Guillermo Maulawin (Guillermo), respondent in this case, is a farmer-businessman engaged in the buying and selling of copra and corn. On 10 July 1997,Tan Shuy extended a loan to Guillermo in the amount of 420,000. In consideration₱thereof, Guillermo obligated himself to pay the loan and to sell lucad or copra topetitioner. Below is a reproduction of the contract:No 2567Lopez, Quezon July 10, 1997Tinanggap ko kay G. TAN SHUY ang halagang . (P420,000.00)
salaping Filipino. Inaako ko na isusulit sa kanya ang akingLUCAD at babayaran ko ang nasabing halaga. Kung hindi akomakasulit ng LUCAD o makabayad bago sumapit ang ., 19 maaariniya akong ibigay sa may kapangyarihan. Kung ang pagsisingilanay makakarating sa Juzgado ay sinasagutan ko ang lahat ngkaniyang gugol.P................[Sgd. by respondent].LagdaMost of the transactions involving Tan Shuy and Guillermo were coursed throughElena Tan, daughter of petitioner. She served as cashier in the business of Tan Shuy,who primarily prepared and issued the pesada. In case of her absence, Vicente wouldissue the pesada. He also helped his father in buying copra and granting loans tocustomers (copra sellers). According to Vicente, part of their agreement with Guillermowas that they would put the annotation sulongon the pesadawhen partial payment forthe loan was made.Petitioner alleged that despite repeated demands, Guillermo remitted only23,000 in August 1998 and 5,500 in October 1998, or a total of 28,500.₱₱₱Heclaimed that respondent had an outstanding balance of 391,500. Thus, convinced that₱Guillermo no longer had the intention to pay the loan, petitioner brought the controversy
to the Lupon Tagapamayapa. When no settlement was reached, petitioner filed aComplaint before the Regional Trial Court (RTC).