FIRST DIVISION [G.R. No. L-25771. March 29, 1982.] URBNO !" a#$ BONIF"IO !", %&'('(o#&r), *). DVO LUMB+R "OMN "OMN a#$ ONORBL+ MNS+S R++S, a) !/$0& o 'h& "o/r' o F(r)' I#)'a#c& o Da*ao, r&)%o#$&#'). Facts:
Ura#o !aca () a 3(c&#)&& o a 3o00(#0 co#c&))(o# 3oca'&$ (# Da*ao "('4, 'o0&'h&r ('h h(6 () Bo#(ac(o !aca �a0&$ (# 'h& 3o00(#0 /)(#&)) o %ro$/c(#0 '(6&r a#$ 3o0) or &%or' a#$or a#$or $o6&)' $o6&)'(c (c %/r%o) %/r%o)&). &). Da*ao Da*ao L/6&r L/6&r "o6%a#4 "o6%a#4 () a /)(#& /)(#&)) )) cor%or cor%ora'( a'(o# o# ('h ('h h(ch h(ch %3a(#'() ha$ /)(#&)) $&a3(#0) $&a3(#0) co*&r(#0 'h& )a3& a#$or &%or'a'(o# o 'h&(r 3o0). So6&'(6& (# 195, h&r&(# %ar'(&)-3('(0a#'), Ura#o !aca a#$ Bo#(ac(o !aca :%3a(#'(; a#$ Da*ao L/6&r "o6%a#4 :$&&#$a#'; &#'&r&$ (#'o a# a0r&&6&#' h&r&4 plaintiffs may secure, by way of advanc advances, es, either either cash or materials, materials, foodstu foodstuffs, ffs, and/or and/or equ equipme ipment nt from from the defendant defendant corporation corporation < that the payment of such account was to be made either in cash and/or by plaintiff's turning over all the logs that they produce in the aforesaid concession concession to the defendant , a#$ (# 'h& 3a''&r ca)&, 'h& c/rr&#' %r(c&), &('h&r &%or' or $o6&)'(c, o 'h& 3o0) a' 'h& '(6& o 'h&(r $&3(*&r4 a) 'o & co#)($&r&$< 'ha' h(3& 'h& aor&)a($ /)(#&)) r&3a'(o#)h(% &'&&# 'h& %ar'(&) a) subsisting, defendant made plaintiff Urbano Jaca eecute in its favor favor a chattel chattel mortgage mortgage,, a copy copy of which which instrum instrument. ent. however however, plaintif plaintiffs fs were were never never furnished /' 'ha' a) ar a) 'h&4 ca# r&co33&c' 'h& %r(6ar4 co#$('(o#) o )/ch cha''&3 6or'0a0& &r& 'ha' %3a(#'() o/3$ '/r# o*&r 'o $&&#$a#' cor%ora'(o# a33 'h& 3o0) 'h&4 6a4 %ro$/c& ro6 'h& aor&)a($ co#c&))(o# 'h& )a6& 'o & %r(c&$ &('h&r a) &%or' or $o6&)'(c a#$ 'h&(r *a3/& 'o & a%%3(&$ 4 $&&#$a#' 'o, a#$ & cr&$('&$ or, 'h& acco/#' o %3a(#'(=) (#$&'&$#&)), a#$ /r'h&r 'ha' (# ca)& o #&&$, %3a(#'() 6a4 )&c/r&, 4 a4 o a$*a#c&), &('h&r ca)h, oo$)'/), 6a'&r(a3) or &>/(%6&#'=), /#$&r a# ?o%&# cr&$(' acco/#'?< 'ha' /#$&r 'h& aor&6&#'(o#&$ ?o%&# cr&$(' acco/#'? r&3a'(o#)h(% &'&&# 'h& %3a(#'() a#$ $&&#$a#', or$&r) &r& )&c/r&$ 4 %3a(#'(), 4 a4 o a$*a#c&), ro6 'h& $&&#$a#', 'h() 'o & %a($ 4 'h&6 ('h %3a(#'()= %ro$/c'(o# ro6 'h&(r co#c&))(o#, 3(>/($a'(#0 'ho)& o3$ acco/#') a#$ @&&%(#0 a33 acco/#') c/rr&#'. 3a(#'() 6a$& r&%&a'&$ $&6a#$) o# $&&#$a#' or a or6a3 acco/#'(#0 o 'h&(r /)(#&)) r&3a'(o#)h(% ro6 195 'o /0/)' 19A /' D&&#$a#' "o6%a#4 a(3&$ a#$ r&/)&$. M/ch 'o 'h&(r )/r%r()&, %3a(#'() r&c&(*&$ 3&''&r) o $&6a#$ ro6 $&&#$a#' 'o %a4 'h&(r acco/#') h(ch a) accor$(#0 'o $&&#$a#' 3o#0 o*&r$/&. 3a(#'( (3&$ a co6%3a(#' or cco/#'(#0, R&'/r# o r(c& D(&r&#'(a3) a#$ Da6a0&) a0a(#)' Da*ao L/6&r. Th& 3o&r co/r' r&#$&r&$ C/$06&#' (# a*or o 'h& co6%a#4. 3a(#'() a%%&a3&$. &#$(#0 )/ch a%%&a3, Da*ao L/6&r (3&$ a 6o'(o# or &&c/'(o# %&#$(#0 a%%&a3 h(ch 'h& 3o&r co/r' 0ra#'&$. O#& o 'h& 0ro/#$) )'a'&$ (# 'h& or$&r o &&c/'(o# %&#$(#0 a%%&a3 or a33o(#0 )/ch &&c/'(o# a) %3a(#'() r&/)a3 r&/)a3 'o $&3(*&r 'h& 6or'0a0&$ cha''&3). !ssueE ON 'h& cha''&3 6or'0a0& () *a3($.
"eldE No. Da*ao L/6&r) %roo o (#'&r&)' (# 'h& %ro%&r'4 () 'h& $&&$ o cha''&3 6or'0a0& &&c/'&$ 4 Ura#o !aca (# a*or o 'h& co6%a#4. Th() $&&$ o cha''&3 6or'0a0& () *o($ &ca/)& (' %ro*($&) 'ha' 'h& )&c/r('4 )'a'&$ 'h&r&(# () or 'h& %a46&#' o a#4 a#$ a33 o3(0a'(o#) h&r&(# &or& co#'rac'&$ a#$ h(ch 6a4 h&r&a'&r & co#'rac'&$ 4 'h& Mor'0a0or (# a*or o 'h& Mor'0a0&&. )'(%/3a'(o# 'ha' 'h& )&c/r('4 () or 'h& %a46&#' o o3(0a'(o#) co#'rac'&$ &or& a#$ h(ch 6a4 h&r&a'&r & co#'rac'&$ 4 6or'0a0or () *o($.
I# 'h& ca)& o B&30(a# "a'ho3(c M())(o#ar(&) *). Ma0a33a#&) r&)) 'h() "o/r' h&3$E ? 6or'0a0& 'ha' co#'a(#) a )'(%/3a'(o# (# r&0ar$ 'o /'/r& a$*a#c&) (# 'h& cr&$(' (33 'a@& &&c' o#34 ro6 'h& $a'& 'h& )a6& ar& 6a$& a#$ #o' ro6 'h& $a'& o 'h& 6or'0a0&
