Engineering and Machinery Corp vs CAGR 52267January 24, 1996

Facts:1) Engineering is engaged in fabrication and installation of central aircon. It installed the

aircon in the building of Panciano Almeda in 1961.2) After 9 years, it instituted a case against Engineering claiming that it did not comply with

the agreed plans and specifications.3) Engineering claims that the action already prescribed as it is a contract of sale,4) Almeda claims that it is a contract for a piece of work, prescriptible in 10 years.5) RTC and CA ruled in favor of Almeda.

Issue: Is the installation a contract of sale or a contract for a piece of work?

Held:It is a contract for a piece of work.Engineering did not sell aircon from off the shelf, fabrication and installation was unique that it followed particular plans. Warranty is only for four years. But it appears in that the complaint is one of breach of contract. Breach of Contract for piece of work prescribes in ten years. The complaint has not prescribed.