Party who first violated contract CANNOT be determined; both bear damages

In Fong v. Dueñas (G.R. NO. 185592, June 15, 2015), the Supreme Court cannot precisely determine who between the parties first violated the agreement. Hence, they applied the second part of Article 1192 which states: “if it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished, and each shall bear his own damages.”

No damages shall be awarded to any party in accordance with the rule under Article 1192 of the Civil Code that in case of mutual breach and the first infractor of the contract cannot exactly be determined, each party shall bear his own damages.