1) The Problem in Plain Terms

A seller accepted your payment for goods, but the goods were not delivered (or only partially delivered). You want your money back. In Philippine law, the usual framing is:

You paid a price (there is a sale, or at least a contract to sell/obligation to deliver).
The seller has an obligation to deliver the determinate or generic thing.
Non-delivery is a breach (default/delay or outright refusal).
The buyer’s remedies generally include rescission/cancellation, refund/restitution, and possibly damages, depending on proof and forum.

In practice, most refund disputes for undelivered goods are won or lost on (a) evidence of payment and promised delivery; (b) proof of non-delivery; (c) proper demand; and (d) choosing the right venue (small claims vs. a regular civil action vs. administrative complaint).

2) Legal Foundations (Philippine Context)

A. Contract and Obligations (Civil Code principles)

When money is paid in exchange for goods, a binding obligation exists. Key ideas:

Obligation to give/deliver: The seller must deliver the item as agreed (what, where, when, how). If delivery date/time is stated, failing to deliver on time is generally delay (mora).
Demand matters: As a rule, a debtor is in delay only after demand, unless demand is excused (e.g., time is of the essence, date is fixed, demand would be useless, or the obligation states no demand is needed).
Remedies for breach:
- Specific performance (deliver the goods) or
- Rescission/cancellation (treat the contract as undone), with refund/restitution of what you paid, plus damages in proper cases.
Restitution: Once rescission is chosen/justified, the usual consequence is returning what each party received—buyer gets the refund, seller gets back anything delivered (if any).

B. Sales concepts (typical in goods disputes)

In a sale, delivery is a central seller obligation. Non-delivery is a substantial breach, especially where the main purpose is to receive the goods.

C. Consumer protection (common scenarios)

If the transaction is a consumer purchase (individual buyer; goods for personal use), additional consumer norms often apply:

Clear information about price, delivery, and refunds is expected.
Misrepresentations can support claims beyond simple breach (e.g., deceptive sales acts), though proving deception may require more detail.

If the seller is online or a marketplace merchant, you may also have platform-level remedies and documentary traces that strengthen your case (order confirmations, tracking, chat logs).

3) What Counts as “Undelivered Goods”?

Undelivered can mean:

Total non-delivery: Nothing arrived.
Partial delivery: Some items missing.
Wrong item delivered: For refund purposes, this can be treated as “non-delivery of the thing agreed” if it defeats the contract’s object.
Delivery promised but repeatedly delayed: Repeated failure beyond a reasonable period (especially after demand) can justify cancellation/refund.
“Delivered” in tracking but not received: This becomes an evidence dispute; you’ll need proof of non-receipt and to challenge the delivery proof.

4) Demand for Refund: How to Make It Legally Useful

A refund demand is both a practical and legal step. It:

Puts the seller in default (when applicable),
Defines what you want (refund vs. delivery),
Creates a paper trail for court,
Supports claims for interest/damages in some cases.

A. Core contents of a strong demand

Include:

Your identity and transaction reference (order number, invoice, chat link).
Date and amount paid, including payment channel details.
Description of goods and the promised delivery date/window.
Statement of non-delivery (or partial/wrong delivery).
A clear choice of remedy:
- Either “Deliver within X days” or
- “Cancel and refund within X days.”
Where/how to refund (bank/GCash details).
A deadline (commonly 3–7 days for straightforward refunds, longer if complex).
Notice of escalation: “If not resolved, I will file a case under the small claims procedure and seek allowable costs and interest.”

B. Proof of demand

Use a method you can prove:

Email with complete headers,
Courier with delivery proof,
Registered mail,
Messaging app where identity is established (screenshots + exported chat),
Platform dispute center logs.

C. Typical mistakes

Vague demands (“Please refund ASAP” with no amount/deadline).
No proof demand was received.
Switching remedies inconsistently (first insisting on delivery, later claiming cancellation) without clarifying you are now electing rescission.

5) Interest, Damages, and What You Can Realistically Recover

A. Refund (principal)

This is the main relief: return of the amount paid for undelivered goods.

B. Interest

Courts may award interest depending on circumstances, especially where the obligation is a sum of money and there is default. The rate and start date can depend on jurisprudential rules and whether the obligation is loan-like or damages-like. In many refund disputes, interest is argued from demand or from filing of the case, but outcomes vary with facts and court discretion.

C. Damages

Actual damages: Proven out-of-pocket losses (e.g., extra shipping you paid, bank transfer fees, replacement purchase at higher price—though that last one can be contested unless clearly linked).
Moral damages: Generally not automatic in contract breaches; may require bad faith, fraud, or circumstances recognized by law.
Exemplary damages: Usually require showing the defendant acted in a wanton, fraudulent, reckless, oppressive manner.
Attorney’s fees: In small claims, attorney appearance is generally restricted; recovery of attorney’s fees is not typically the focus and depends on rules and court discretion. More often, you pursue what the rules allow (filing fees and costs as applicable).

Practical note: Small claims is designed for simple money claims; you normally aim for principal + allowable costs/interest, and keep the theory straightforward (refund due to breach).

6) Choosing the Right Forum

A. Small Claims (when it fits)

Small claims is ideal when:

You want money (refund), and
The case is simple, document-based, and
The amount falls within the current small claims ceiling (this ceiling has been increased over time by Supreme Court rules; you must ensure your claim fits the latest limit applicable at filing).

Small claims is generally:

Faster than ordinary civil cases,
Less formal,
Lawyer participation is limited,
Focused on settlement and streamlined trial.

Important limitation: If your main goal is to force delivery of the item (specific performance), small claims is not the best fit. If you want money back, it usually is.

B. Regular civil action (when needed)

Consider a regular civil action if:

You need complex relief (e.g., extensive damages, injunction, specific performance),
Multiple complex issues require full trial procedures,
The claim does not fit small claims rules/ceilings.

C. Administrative/consumer complaint options

Depending on the seller and product, administrative remedies may exist (consumer complaint channels, industry regulators). These can pressure settlement but may not be as direct as a court judgment for collection. Often, buyers pursue both platform remedies and then small claims if unresolved.

7) Small Claims in the Philippines: How Refund Cases Are Typically Framed

A. Nature of the claim

A refund demand for undelivered goods is commonly pleaded as a sum of money due to:

Breach of contract of sale / failure to deliver, resulting in rescission and restitution, or
Unjust enrichment / return of money received without the promised consideration (often pleaded alternatively).

Small claims judges usually prefer clean framing:

“I paid ₱X. Goods were not delivered. I demanded refund. No refund. Therefore defendant owes ₱X plus allowable costs/interest.”

B. Who are the parties?

Plaintiff: buyer/payor.
Defendant: the seller/merchant.
- If the seller is a business, sue the correct legal entity (sole proprietor vs. corporation) and/or the owner if appropriate under business registration details.
- For marketplace sellers, identify the seller’s real name/business details as shown in receipts, platform records, and payment accounts.

C. Venue (where to file)

Small claims are filed in the proper trial court (typically Metropolitan Trial Court/Municipal Trial Court in Cities/Municipal Trial Court depending on locality), based on rules on venue:

Generally, where the defendant resides or where the transaction/obligation is to be performed, subject to applicable procedural rules and any valid venue stipulations (though consumer contexts often scrutinize unfair venue clauses).

D. No lawyers (generally)

Small claims is designed for litigants to appear personally. There are limited exceptions for representation (e.g., juridical entities through authorized representatives). The court expects parties to present documents and testimony succinctly.

E. Filing fees and costs

You pay filing fees (which vary by claim amount). You can request reimbursement of allowable costs if you win.

F. Settlement focus

Small claims calendars often begin with efforts to settle. A settlement can be put into a compromise agreement and approved by the court, becoming enforceable.

8) Evidence: What Wins Refund Cases

Refund-for-non-delivery disputes are evidence-driven. Strong proof often includes:

Proof of payment
- Bank transfer receipt, e-wallet transaction record, card charge, remittance slip.
Proof of the agreement
- Invoice, order confirmation, checkout page, messages agreeing on item/price/delivery date.
Proof of promised delivery
- Seller’s confirmation, estimated delivery window, tracking number issuance.
Proof of non-delivery
- Courier tracking showing no delivery,
- If tracking says delivered: affidavit/statement, CCTV logs, building guard logs, proof you were elsewhere, neighbor statements, complaint ticket with courier, etc.
Proof of demand
- Demand letter, email, messages with date/time stamps.
Seller identity
- Business name, addresses, IDs, screenshots of profile, receipts showing registered details.

Tip: Organize evidence chronologically; small claims judges appreciate clear timelines.

9) Common Defenses Sellers Raise (and How They’re Handled)

“We shipped it; courier lost it.”
- If the seller chose/controlled shipping, they may still be responsible to deliver or refund, depending on contract terms and risk allocation. Evidence of actual delivery to the buyer matters.
“Tracking says delivered.”
- You must rebut with credible non-receipt evidence and inconsistencies (wrong address, no proof-of-delivery signature/photo, delivery time impossible, etc.).
“Refund policy says no refunds.”
- Policies cannot defeat basic obligations when consideration fails (no delivery). Courts look at the substance: payment with no delivery generally supports restitution.
“Buyer gave wrong address / unreachable.”
- Seller must show they attempted delivery properly and that failure is attributable to buyer’s fault.
“It’s delayed; please wait.”
- Delay can be excusable only with credible reason and communication; but prolonged delay after demand can justify rescission/refund.
“Not the correct defendant.”
- This is why identifying the legal entity and authorized reps is crucial.

10) Drafting the Small Claims Statement of Claim (Substance)

A typical structure:

Parties: names, addresses, contact.
Facts (timeline):
1. Order/transaction date
2. Payment amount and method
3. Delivery promise
4. Non-delivery
5. Demand and non-compliance
Cause: Defendant received ₱X but failed to deliver; plaintiff rescinds and seeks refund.
Prayer: Order defendant to pay ₱X plus allowable interest/costs.
Attachments: numbered exhibits.

Keep it simple, consistent, and supported by documents.

11) Enforcement After Winning: Getting Paid

A judgment is only the start if the seller still refuses.

If you win and the defendant does not pay voluntarily, you may need execution:

The court can issue a writ of execution.
Sheriff processes may involve locating assets, bank accounts, receivables, or garnishment, depending on what is legally permissible and discoverable.
Practical enforcement depends heavily on whether the defendant is identifiable, reachable, and has attachable assets.

This is why it helps to sue a defendant with a real-world presence (registered business, known address) and to gather identity details early.

12) Special Scenarios

A. Cash on delivery (COD) but paid to courier

If payment was made to a courier, determine who actually received the funds. Your claim might involve:

The seller (if the courier remits to seller), and/or
The platform/courier depending on contractual arrangements.

B. Partial delivery

You can demand refund of:

The value of the undelivered items (if separable), or
Full rescission/refund if partial delivery defeats the purpose of the purchase.

C. Customized goods / pre-orders

Sellers often argue longer timelines. Your case strengthens if:

There was a definite promised date,
You made demands after missed deadlines,
The seller cannot show progress or good-faith performance.

D. Digital goods and services

Small claims can apply if the relief is a sum of money due, but issues may involve proof of access/delivery rather than physical shipment.

13) Practical Timeline Strategy (Buyer-Friendly)

Collect documents immediately: receipts, chats, order details.
One clear written demand: refund (or deliver within a short window, then refund).
Platform/courier dispute (if applicable): create a ticket; preserve outcomes.
File small claims if still unpaid: attach clean evidence and a timeline.
Prepare for settlement day: know your minimum acceptable terms (full principal, fixed date, mode of payment).
If judgment is won and unpaid: move for execution.

14) Key Takeaways

For undelivered goods, the legal heart of the case is simple: payment made + delivery promised + non-delivery + demand + no refund.
The strongest cases are document-heavy, with clear proof of payment, non-delivery, and demand.
Small claims is the practical court route when you want a refund and the amount fits the applicable ceiling and rules.
Your odds improve dramatically when you can identify the seller correctly, show a clean timeline, and avoid overcomplicating damages theories.