Mindex Resources Development v. Morillo
G.R. No. 138123 March 12, 2002 [Panganiban, J.] Facts: Petitioner agrees verbally to lease a 6x6 cargo truck owned by the respondent Ephraim Morillo for use in MINDEX' mining operations. Unkown to Morillo the said truck was burned by unindentified persons while parked unattended after it suffered mechanical trouble. The truck was totally burned and only its engine was partially burned. Upon learning of the incident Morillo offered to sell the truck to petitioner, but the latter refused. Instead it replaced the trucks tires and had it towed for repair and overhauling. Morillo sent a proposal to Mindex that for the payment of the cost of the truck in four (4) installments plus unpaid rentals but due to the tight finances, petitioner instead made a counteroffer to pay the rent, repair and overhaul the truck and return it to Morillo. With the parties unable to come to an agreement, Morillo pulled out the truck from Mindex' repair shop and had it repaired somewhere else. ...