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A and B Entered into a Contract for a to Manufacture

Question 6

Multiple Choice

A and B entered into a contract for A to manufacture boxes to be used by B for his export business. B paid the amount of ₱2M, but A failed to manufacture the boxes despite repeated follow-up of the immediate production of the boxes. B filed a complaint for reimbursement of the ₱2M.


A) The action will not prosper because of lack of demand by B for A to fulfill his obligation.
B) The action will prosper because the follow-up is the equivalent of demand to comply.
C) The action will prosper because in reciprocal obligations rescission is implied in case of non-performance.
D) The action will prosper, otherwise, A will enrich himself at the expense of B.

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