Case Digest on Obligations and Contracts: Breach of Agreement - Ricardo Honrado v. GMA Network Films, Inc. G.R. No. 204702
Ricardo Honrado v. GMA Network Films, Inc. G.R. No. 204702, January 14, 2015 Facts: GMA Films entered a “TV Rights Agreement” with petitioner Honrado under which Honrado, as licensor, granted GMA for a fee of P60.5 million the exclusive right to telecast 36 films for three years. Paragraph 3 of the Agreement provides that all betacam copies of the films should pass through broadcast quality test conducted by GMA-7, while Paragraph 4 provides that in the event of the disapproval of the MTRCB, GMA will either replace the rejected film with another title mutually acceptable to both parties or deduct or refund a proportionate reduction from the total price. Subsequently, GMA sued Honrado to collect P1.6 million representing the fee it paid for “Evangeline Katorse” and a portion of the fee paid for “Bubot.” Respondent alleged that it rejected the “Evangeline Katorse” because its running time was too short for telecast and Honrado only remitted P900k to the owner of “Bubot”, keepin...