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Arco Pulp and Paper Co., lnc. vs. Lim

ARCO PULP AND PAPER CO., INC. and CANDIDA A. SANTOS, Petitioners, vs. DAN T. LIM, doing business under the name and style of QUALITY PAPERS & PLASTIC PRODUCTS ENTERPRISES, Respondents,

G.R. No. 206806 | 2014-06-25

Republic of the Philippines
SUPREME COURT
Manila
 
THIRD DIVISION
DECISION

LEONEN, J.:
 
Novation must be stated in clear and unequivocal terms to extinguish an obligation. It cannot be presumed and may be implied only if the old and new contracts are incompatible on every point. Before us is a petition for review on certiorari1 assailing the Court of Appeals’ decision2 in CA-G.R. CV No. 95709, which stemmed from a complaint3 filed in the Regional Trial Court of Valenzuela City, Branch 171, for collection of sum of money.
 
The facts are as follows:

Dan T. Lim works in the business of supplying scrap...