Professional Documents
Culture Documents
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notwithstanding the fact that it may have become impossible for the
debtor to use the money loaned for the particular purpose that was
intended (Milan vs. Rio y Olabarrieta, 45 Phil. 718). There is hence
no ground for declaring the amortizations due on the principal loan
since October, 1952 as extinguished due to fortuitous event or to
grant plaintiff a reasonable time to pay the due amortizations.
Land Registration Act; Original certificate of title does not
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parcels of land, among which, was the parcel which Ponce de Leon
and Soriano mortgaged to the PNB. The application stated that the
properties offered for security for the RFC loan are encumbered to
the PNB, Bacolod, and to Cu Unjieng Bros. The properties offered
for security to the RFC were inspected by the appraisers of the
latter, who submitted the following appraisals:
P480,228.00
P 12,000.00
P 67,101.00
P 14,000.00
Total ......................
P573,329.00
(Exh. '6-aRFC')
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P78,800.00
P 5,790.00
P15,000.00
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P10,000.00
P 6,000.00
"The Sheriff sold the land covered by original certificate of Title No.
8094 in the name of Francisco Soriano, married to Tomasa
Rodriguez, on June 15, 1954 and the deed of sale, dated April 19,
1955 was executed by the sheriff in favor of the purchaser thereof,
the RFC, including all the other properties sold (Exhibit '15-RFC,'
also '54-Soriano').
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the amount for which the RFC acquired the whole lot in the sheriff's
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1952 from Ponce de Leon as shown by the check marked Exhibit 'X3' and third-party plaintiff Rev. Eugenio Soriano received P100.00
on March 3, 1952 as shown by the check exhibit 'X-1' and P50.00 on
March 13, 1952 as shown by exhibit 'X-4'. There is therefore no
ground for declaring the mortgage contract and promissory note
invalid for lack of consideration insofar as Francisco Soriano and his
4
children are concerned."
The facts thus relied upon by His Honor, the Trial Judge,
are borne out by the record, and We are fully in accord with
the conclusions drawn therefrom.
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demand
(a) Where it is expressed to be payable on demand, or at sight or on
presentation; or
(b) In which no time for payment is expressed.
Where an instrument is issued, accepted, or indorsed when overdue,
it is, as regards the person so issuing, accepting, or indorsing it, payable
on demand.
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_______________
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52 O.G. 2031.
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Italics ours.
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not only the guardian but the oldest two of the children as
well personally appeared and expressed their conformity to
the proposed sale. This ratification validated the agreement
as effectively as if the minors or their guardian ad litem had
signed it. Escoto vs. Arcilla, 89 Phil. 199.
Contracts entered into by minors nearing majority who
pretend they are of age are valid.But plaintiff contends
that the need of cession executed by him jointly with Luz
Hermosa adjudicating to the latter the property in question
in order to facilitate its sale to the defendant is null and void
lor the reason that at the time it was executed by him on
November 18, 1947 he was still a minor and so the cession
did not have any legal effect. We fail to see how this
contention can be sustained it appearing that at the time be
and his aunt Luz executed said deed of cession, he was
almost of age, or was already 20 years, 11 months and 3
days old. As this Court said in the case of Mercado vs.
Espiritu, 37 Phil. 215: "The courts have laid down the rule
that the sale of real estate, effected by minors who have
already passed the ages of puberty and adolescence and are
near the adult age when they pretend to have already
reached their majority, while in fact they have not, is valid,
and they cannot be permitted afterwards to excuse
themselves from compliance with the obligations assumed
by them or to seek their annulment." Hermosa vs. Zobel, 104
Phil. 769.
Estoppel applied to contracts of minors nearing the age of
majority.Moreover, after he and his aunt Luz had
executed the aforesaid deed of cession, they filed a joint
petition with the probate court wherein they explained the
reason why the cession had to be made in favor of Luz
Hermosa and requested that said deed be approved. And
after considering the reasons advanced by them, the court
approved the cession in the following wise: "It having been
shown that for the best interest of the estate the deed
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Hence, until the contract of Ong Shu with Soto is set aside
by a competent court (assuming that the fraud is
established to its satisfaction), the validity of appellant's
claim to the property in question can not be disputed, and
his right of the possession thereof should be respected. Chua
Hai vs. Kapunan, Jr., 104 Phil. 110.
Court action is necessary to annul voidable contract.
Plaintiff's claim that the sale is inexistent or void ab initio
cannot be sustained, it appearing that out of its
consideration of P370,000.00 plaintiff applied the amount of
P93,928.56 to pay its pre-war indebtedness to the
Agricultural and Industrial Bank and distributed the
balance of P276,071.44 among its stockholders. This is a
clear indication that the sale, even if vitiated, is merely
voidable and as such cannot have reversible effects unless
proper action is brought for its annulment. As this court has
aptly said:
"Had the plaintiff desired to set aside the contracts of conveyance
made by his father, he should have instituted a special action for
that purpose. (Arts. 1300 to 1314, Civil Code.) He can not have said
documents annulled in a subsidiary action. x x x . One who desires
to recover lands as the owner from another upon the theory that the
deeds held by the other are null and void, must first ask that such
alleged fraudulent deeds be set aside." (Llacer vs. Muos de Bustillo
and Achaval, 12 Phil. 328, 334).
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evidence
bearing
on
collateral
agreements
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is
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10. Performance
Delay in the performance of reciprocal obligations.The fact
that the petitioner itself purchased various spare parts both
for the sawmill and the landing barges in order to complete
them is a clear admission on its part of its failure to deliver
the sawmill and the barges complete. The obligation of the
party of the first part to deliver the lumber in exchange for
the equipment was to accrue or become due "thirty days
after the installation of the sawmill." But the delay in said
installation is not attributable to the party of the first part,
but to the party of the second part, which had not complied
with its obligation to deliver the equipment and machinery
"in good running condition." The responsibility for the
resulting delay in the delivery of the lumber may not,
therefore, be laid at the door of the party of the first part but
at that of the party of the second part, which had failed to
live up to its obligation. This attempted modification of the
contract, by allowing the party of the second part to accept
surplus materials instead of the lumber was, to a great
extent, the cause
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375
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(Brams vs. New York Life Ins. Co., 299 Pa. 11, 148 Atl. 855;
Jolley vs. Jefferson Standard Life Ins. Co., 95 Wash. 683,
294 Pac. 585.) De la Cruz vs. Capital Ins. & Surety Co., Inc.,
17 SCRA 559.
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tract for the parties, but only to make the instrument speak
their genuine intentionCosio vs. Palileo, 17 SCRA 196.
ATTY.MARIA LUISA MENDOZA and JOJO MA.LACSON.
Notes.(a) Inadequacy of price as ground for annulling
execution sale.A judicial sale under foreclosure is not to be
set aside for mere inadequacy of price unless the inadequacy
is so great as to shock the conscience, or unless there are
other circumstances making the sale unjust (Warner,
Barnes & Co. vs. Santos, 14 Phil. 446; National Bank vs.
Gonzalez, 45 Phil. 693; Navarro vs. Navarro, 76 Phil. 122;
Bank of the Philippine Islands vs. Green, 52 Phil. 491).
Furthermore, in order to annul a judicial sale, conducted
regularly and confirmed by the court, upon ground of lesion
through inadequacy of price, it must appear from the record
that a higher price could be obtained for the property or that
there was fraud in the sale (La Urbana vs. Belando, 54 Phil.
930; Guerrero vs. Guerrero, 57 Phil. 442).
But while inadequacy of price alone does not justify the
setting aside of a judicial sale, yet when such inadequacy is
very great and there are slight circumstances tending to
show that interested parties were misled or by accident or
mistake were prevented from attending the sale, or
preventing it, it may be set aside (Iturralde vs. Velasquez, 41
Phil. 886).
In Del Rosario vs. Villegas, 49 Phil. 634, it was held that
where a provincial sheriff, guided by a letter of the
attorneys for the judgment creditor and by data furnished
by certain merchants in order to fix prices for the execution
of a judgment, not subject to execution but also arrogated to
himself powers which belonged only to the court, his acts
were illegal and void; and therefore the sale of the two
parcels of land in question, based upon sums resulting from
arbitrary and illegal estimate of prices, is also null and void.
See also De Leon vs. Salvador, L-30871, Dec. 28, 1970,
reported in this volume.
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