Sales Digests by 2A

LLB 2A 

1

LLB 2A 

TABLE OF CONTENTS  Adjul, Alyssa T.. T................................................................................................................................. 8 1. GAITE vs. FONACIER ............................................................................................................. 8 2. KER & CO., LTD. vs. LINGAD. LINGAD ................................................................................................. 9 . SC!"ID & OBERL#, INC. vs. R$L "ARTINE%................................................................... "ARTINE%................................................................... 1 '. FILIN(EST CREDIT COR). vs. CO*RT OF A))EALS......................................................... A))EALS ......................................................... 11 +. L*%ON BROKERAGE C vs. "ARITO"E B*ILDING C.. C. .................................................. 1  Ala-, S// Fa/0a Fa/0a "..................................................................................................................... "..................................................................................................................... 1+ . DIGNOS vs. CO*RT OF A))EALS........................................................................................ A))EALS ........................................................................................ 1+ . "ARTIN vs. RE#ES. RE#ES............................................................................................................... 1 8. "INDANAO ACADE"#, INC. vs. #A). #A) ................................................................................. 1 9. ESTO3*E vs. )A$I"*LA ..................................................................................................... ..................................................................................................... 18 1. SEG*RA (S. SEG*RA ........................................................................................................ 2  Alla0a, !ads4556a !ads4556a A.. A.................................................................................................................. 21 11. RE)*BLIC OF T!E )!ILI))INES (S. CO*RT OF A))EALS. A))EALS ........................................... 21 12. TO"AS T. TEODORO vs. T!E CO*RT OF A))EALS. A))EALS ....................................................... 22 1. #* TEK AND CO., (S. BASILIO GON%ALES. GON%ALES..................................................................... 2 1'. ONG $ANG C!*AN vs. 7ISE & CO. LTD........................................................................ LTD ........................................................................ 2' 1+. B*NGE COR). ET. AL.(S. ELENA CA"ENFORTE AND CO"......................................... CO". ........................................ 2+  A0lasa6, "4a00ad "4a00ad G4a0d I................................................................................................. I................................................................................................. 2 1. )ATERNO vs. SAL*D. SAL*D .......................................................................................................... 2 1. $OSE SANTA ANA, $R. (S. ROSA !ERNANDE%............................................................... !ERNANDE% ............................................................... 2 18. SIBAL vs. (ALDE%. (ALDE%.............................................................................................................. 28 19. L*IS )IC!EL (S. )R*DENCIO ALON%O. ALON%O......................................................................... 29 2. B*CTON (S. GABAR .......................................................................................................... ..........................................................................................................   A:u6, C;a<6a Ad5l565 Ad5l565 $............................................................................................................. $............................................................................................................. 1 21. RE)*BLIC OF T!E )!ILI))INES vs. LIC!A*CO, 5/ al................................................... al. .................................................. 1 22. DEL ROSARIO vs. SANTOS, ET AL.................................................................................... AL. ................................................................................... 2 2. TIB*RCIO L*TERO vs. SI*LIONG & CO.. CO. ......................................................................... ' 2'. KER & CO., LTD. (S $OSE B. LINGAD............................................................................... LINGAD ............................................................................... + Bau/s/a, R/=45ll F........................................................................................................................ F........................................................................................................................  2+. INC!A*STI AND CO. vs. ELLIS CRO"7ELL. CRO"7ELL ..................................................................  2. "A$ARABAS, 5/. al. vs. LEONARDO.................................................................................. LEONARDO .................................................................................. 8 2. "ITS*I B*SSAN KAIS!A vs. T!E "ANIlA E. R. AND L. C. .......................................... ..........................................9 9 2

LLB 2A 

28. E. C. "CC*LLO*G! vs. R. AENLLE & CO........................................................................ CO. ....................................................................... ' 29. %ACARIAS ROBLES vs. LI%ARRAGA !ER"ANOS. !ER"ANOS........................................................... '1 B5sa<5s, Alya66a "a<; C.............................................................................................................. C.............................................................................................................. ' . ASKA# vs. COSALAN.......................................................................................................... COSALAN .......................................................................................................... ' 1. 7ARNER, BARNES & CO., LI"ITED vs. SANTOS SANTOS............................................................ ............................................................ '' 2. )!ILI))INE NATIONAL BANK vs. GON%ALE%, GON%ALE%,.............................................................. .............................................................. '+ . T!E DIRECTOR OF LANDS vs. ABARCA .......................................................................... .......................................................................... ' '. DE LEON vs. SAL(ADOR .................................................................................................... .................................................................................................... ' B6a6>, I?64aja< L.. L...................................................................................................................... '8 +. BORRO"EO vs. BORRO"EO, 5/ al................................................................................... al. .................................................................................. '8 . CR*%ADO vs. B*STOS AND ESCALLER .......................................................................... .......................................................................... + . GARDNER vs. CO*RT OF A))EALS.................................................................................. A))EALS .................................................................................. +2 B6>=, R=@y R5 ).. )..................................................................................................................... + '. LEO)OLDO DE BELEN vs. COLLECTOR OF C*STO"S.................................................. C*STO"S.................................................. + '1. FRANCISCO IR*RETA GO#ENA vs. ILDEFONSO TA"B*NTING.................................. TA"B*NTING.................................. ++ '2. FILI)INAS COLLEGES, INC. vs. TI"BANG, 5/. al............................................................. al. ............................................................ + '. BARRETTO vs. SANTA "ARINA ........................................................................................ ........................................................................................ +9 Ca/ula6, $5665l $5;d5 T........................................................................................................... T...........................................................................................................  '+. OBANA (S. CO*RT OF A))EALS. A))EALS ......................................................................................  '. CA")ILLIO (S. CO*RT OF A))EALS............................................................................... A))EALS ............................................................................... 1 '. K5<< & =. L/d vs. Cll5=/<  6/5<6al <5v56u5.................................................................. <5v56u5 .................................................................. 2 Ca/0?a6>, $a665 A.. A....................................................................................................................  +. )EO)LES !O"ESITE & !O*SING COR). vs. CO*RT OF A))EALS............................ A))EALS ............................  +1. ANG vs. T!E CO*RT OF A))EALS. A))EALS .................................................................................... ' +2. C!R#SLER COR)ORATION vs. CO*RT OF A))EALS A))EALS..................................................... .....................................................  +. ARTE"IO KATIGBAK vs. CO*RT OF A))EALS A))EALS............................................................... ...............................................................  +'. $*LIAN BORRO"EO vs. $OSE FRANCO # FRANCO, 5/. al............................................. al ............................................. 8 Dal6, Ra;a !.. !............................................................................................................................ 9 ++. TAN LEONCO vs. GO IN3*I.............................................................................................. IN3*I .............................................................................................. 9 +. ASIATIC )ETROLE*" CO". vs. COLLECTOR OF INTERNAL RE(EN*E.................... RE(EN*E....................  +8. LEO3*INCO vs. )OSTAL SA(INGS BANK, 5/ al. al............................................................... .............................................................. 1 +9. FIDELIT# & DE)OSIT CO. vs. 7ILLIA" A. 7ILSON, 5/ al. al.............................................. ............................................. 2 D0s0>, "a/ld5v5
LLB 2A 

. 7ALTER EASTON vs. E. DIA% & C. C.................................................................................. ................................................................................. 9 '. OCE$O, )ERE% & CO., vs. T!E INTERNATIONAL BAN@ ................................................ 81 Duaul6, "a<a R6a ".............................................................................................................. ".............................................................................................................. 1' 8. NICOLAS SANC!E% vs. SE(ERINA RIGOS.................................................................... RIGOS .................................................................... 1' 8'. E*SEBIO S. "ILLAR vs. DOROTEO NADRES................................................................ NADRES ................................................................ 1+ 8+. $. F. 7RIG!T vs. LA CO")AIA DE TRAN(IAS........................................................... TRAN(IAS........................................................... 1 8. "E#ER & CO. vs. #ANCO................................................................................................. #ANCO................................................................................................. 1 8. LOT!AR F. ENGEL vs. "ARIANO (ELASCO AND CO................................................... CO. .................................................. 18 $*LKARNAIN,, N*R A. $*LKARNAIN A................................................................................................................ ............................................................................................................... 11 88. )ACIFIC CO""ERCIAL CO")AN# vs. ER"ITA "ARKET & COLD STORES, INC., ... 11 89.  (ILLONCO REALT# REALT# vs. BOR"A!ECO, BOR"A!ECO, INC., .............................................. ................................................................. ................... 11

9. (ELASCO vs. CO*RT OF A))EALS. A))EALS .................................................................................. 11' 91. S)O*SES DORO"AL, SR. AND SALAS vs. CO*RT OF A))EALS.................................. A))EALS ..................................11 11 92. ELIAS GALLAR vs. !ER"ENEGILDA !*SAIN, ET AL.. AL. ................................................. 118 Ka0la6, L5;l5 S.. S.......................................................................................................................... 119 '

LLB 2A 

9. G*%"AN vs. G*IEB.......................................................................................................... 119 9'. B*CTON vs. GABAR ......................................................................................................... 12 9+. CARBONELL vs. CO*RT OF A))EALS............................................................................. 121 9. T!E BOARD OF LI3*IDATORS vs. $OSE ROAS.......................................................... 122 9. SOSTENES CA")ILLO vs. )!ILI))INE NATIONAL BANK ........................................... 12 Lu0a?as, Ra05l "...................................................................................................................... 12' 98. E*LOGIO RODRIG*E%, SR. vs. SOFRONIO FRANCISCO............................................. 12' 99. "ANOTOK REALT#, INC., vs. CO*RT OF A))EALS a6d FELI)E CARILLO................12+ 1. BRA*LIO CASTILLO, ET AL. vs. SI")LICIA NAGTALON........................................... 12 11. "ARIA "A!IL*", 5/ al. vs. CO*RT OF A))EALS....................................................... 128 12. "ACONDRA# & CO., INC. vs. )RAEDES R. DE SANTOS........................................... 129 "5js, A<5s4 !........................................................................................................................... 1 1. LE(# !ER"ANOS, INC. vs. GER(ACIO........................................................................ 1 1'. IND*STRIAL FINANCE COR). vs. TOBIAS................................................................... 11 1+. RIDAD vs. FILI)INAS IN(EST"ENT............................................................................. 12 1. ESG*ERRA vs. CO*RT OF A))EALS............................................................................. 1 "5<=ad, N5<;;a C...................................................................................................................... 1+ 1. FILIN(EST CREDIT COR). vs. CO*RT OF A))EALS................................................... 1+ 18. IND*STRIAL FINANCE COR). vs. RA"IRE%............................................................... 1 19. SO*T!ERN "OTOR INC. vs. ANGELO "OSCOSO...................................................... 18 11. SER(ICE7IDE S)ECIALISTS INC. vs. INTER"EDIATE A))ELLATE CO*RT.......... 19 111. BAC!RAC! "OTOR CO., INC. vs. )ABLO A. "ILLAN.................................................. 1'1 "565 G......................................................................................................... 1'2 112. "ACONDRA# & CO. vs. BENITO & OCA")O, ............................................................... 1'2 11. )ASC*AL vs. *NI(ERSAL COR)., .................................................................................. 1'2

11'. %A#AS vs. L*NETA "OTORS......................................................................................... 1'' 11+. "ANILA TRADING & S*))L# CO. (S. RE#ES.............................................................. 1'+ "ual0, A06C4ad<5 A ............................................................................................................ 1' 11. IND*STRIAL FINANCE COR)ORATION vs. CASTOR TOBIAS.................................... 1' 11. Sus5s N6a/ vs. IAC a6d I6v5s/
LLB 2A 

12. )!ILI))INE LA7IN B*S, CO. vs. CO*RT OF A))EALS.............................................. 1+9 12'. INS*LAR LIFE ASS*RANCE CO")AN#, LTD. vs. #O*NG......................................... 1 12+. CORONEL vs. CO*RT OF A))EALS............................................................................... 12 )asa6/6>, Ray A6d<5- B............................................................................................................ 1 12. TO#OTA S!A7, INC. vs. CO*RT OF A))EALS............................................................. 1 12. ALFREDO vs. BORRAS.................................................................................................... 1 128. A"ELIA S. ROBERTS vs. "ARTIN B. )A)IO................................................................. 1 129. SANC!E% vs. "A)ALAD REALT# COR)....................................................................... 19 1. CAR"EN DEL )RADO vs. S)O*SES CABALLERO....................................................... 1 R50/6, Rsa65 )...................................................................................................................... 11 1. "O(IDO vs. )ASTOR ....................................................................................................... 11 1. DE LEON vs. ONG............................................................................................................ 12 18. S)S. BERNARDO B*ENA(ENT*RA AND CONSOLACION $OA3*IN 5/ al. vs. Cu65s S......................................................................................................... 1 1'1. )ACIFIC O#GEN & ACET#LENE CO. vs. CENTRAL BANK ......................................... 1 1'2. GAITE (S. FONACIER ..................................................................................................... 18 1'. SE(ENT! DA# AD(ENTIST vs. NORT!EASTERN "ISSION ..................................... 18 1''. CA(ITE DE(ELO)"ENT BANK vs. S)us5S LI"......................................................... 181 1'+. CRONICO vs. $.". T*ASON & CO., INC......................................................................... 182 Saud6, I $<. C.................................................................................................................. 18' 1'. ANG #* AS*NCION 5/ al. vs. CO*RT OF A))EALS..................................................... 18' 1'. ENRI3*E% DE LA CA(ADA vs. DIA%............................................................................ 18 1'8. R*)ERT SORIANO vs. BA*TISTA ................................................................................. 18 1'9. LO*RDES LI"SON vs. CO*RT OF A))EALS............................................................... 188 1+. ADELFA )RO)ERTIES INC. vs. CO*RT OF A))EALS..................................................189 Salaudd6, R5a B5/4 !.............................................................................................................. 19 1+1. E3*ATORIAL REALT# vs. "A#FAIR T!EATER .......................................................... 19 1+2. $"A !O*SE INC. vs. STA. "ONICA IND*STRIAL AND DE(T. COR). .......................191 1+. (AS3*E% vs. A#ALA COR)............................................................................................. 19 1+'. S)S GARCIA vs. CO*RT OF A))EALS........................................................................... 19' 1++. S)S SERRANO AND !ERRERA vs. CAG*IAT............................................................... 19+ Sal0, Sad@l A........................................................................................................................... 19 1+. LAFORTE%A, 5/ al., vs. "AC!*CA ................................................................................. 19 

LLB 2A 

1+. SAN "IG*EL )RO)ERTIES )!. vs. S)O*SES !*ANG............................................... 198 1+8. TO)ACIO vs. CO*RT OF A))EALS................................................................................ 199 1+9. ADELFA )RO)ERTIES, INC (S. CO*RT OF A))EALS ET AL..................................... 2 1. !EIRS OF CECILIO CLA*DEL vs. CO*RT OF A))EALS, !EIRS OF "ACARIO CLA*DEL 5/. al....................................................................................................................... 22 T5v5s, C45<, A?du


LLB 2A 

 AD$*L, AL#SSA T. 1. GAITE (S. FONACIER  G.R. N. L1182 2 SCRA 8

$uly 1, 191

Facts:

F6a=5< -as /45 -65< a6d< 4ld5<  11 <6 ld5 0656056/J da/5d S5/50?5< 29, 19+2, F6a=5< =6s//u/5d a6d a6/5d Ga/5 as 4s / =la0s. O6 "a<=4 19, 19+', Ga/5 6 /u<6 55=u/5d a >5656056/ =6v5y6> /45 d5v5l056/ a6d 5l/a/6  sad 066> =la0s 6/ /45 Lal5 <<5/6> / 40, 6 /45 sa05 <yal/y ?ass <vd5d ?y /45 D55d  Ass>6056/J.

F6a=5< d5=d5d / <5v@5 /45 au/4</y > =la0s 6 :u5s/6, a6d Ga/5 ass56/5d /45<5/ su?j5=/ / =54/s a6d 6/5<5s/s 6 d5v5l056/ a6d 5l/a/6  sad 066> =la0s, 6 =6sd566>  /45 a><55056/, a6d ?. T45 ?ala6=5  )+,. -ll ?5 ad <0 a6d u/  /45  /45  C. I6=., /s ass>6s, ad06s/
 745/45< < 6/ F6a=5< a6d 4s su<5/5s a<5 56//l5d / /a@5 ull adva6/a>5  /45 5<d > /45 ay056/. Held:

SC a><55d -/4 /45 =u4/ =u4/ / =05l Ga/5 / -a/ < /45 sal5  /45 <5 ?5<5 <5=5v6> ay056/  /45 ?ala6=5  )+,., ?5=aus5  /45< alu<5 / <565- /45 ?6d   /45 Fa< Eas/5<6 Su<5/y C0a6y < 5ls5 <5la=5 / -/4 a6 5:uval56/ >ua =0a6ys u6d5 6 D5=50?5< 8, 19++ su?s/a6/ally <5du=5d /45 s5=u</y   /45 v56d<s <>4/s as =<5d/< < /45 u6ad )+,., a s5=u</y /4a/ Ga/5 =6sd5<5d 5ss56/al a6d u6 -4=4 45 4ad 6ss/5d -456 45 55=u/5d /45 d55d  sal5  /45 <5 / F6a=5< E4?/ JAJ. T45 =as5 s:ua<5ly =05s u6d5< a4/ / 0a@5 us5  /45 5<d . . . 2 7456 45 d5s 6/ u<6s4 / /45 =<5d/< /45 >uaua4 v5s 65- 65s 5:ually sa/sa=/v56 / /45 =<5d/< a5ll55 Ga/5, u6l5ss 005da/5ly <565-5d < <5la=5d. 8

LLB 2A 

2. KER & CO., LTD. (S. LINGAD G.R. N. L281 A<l , 191 8 SCRA +2' Facts: CIR assessed the sum of P20,272.33 as the commercial broker‘s percentage ta,

su<=4a<>5, a6d =0<0s5 56al/y a>a6s/ K5< & C. T45<5 -as a <5:u5s/ 6 /45 a65d a =6/ <55<<5d / as /45 Ds/<?u/< a6d /45 la//5< s5==ally d5s>6a/5d as /45 C0a6y. T45 shipments !ould co"er products #for consumption in Cebu, $ohol, % 5y/5, Sa0a<, $l, N5><s &riental, and 'indanao ecept (the) pro"ince of *a"ao+. er - Co, as *istributor, !as

<5=lud5d <0 dss6> su=4 <du=/s 5ls5-45<5 /4a6 6 /45 a?v5 la=5s u6l5ss -<//56 =6s56/ -uld 5 6 /45 ds=<5/6  /45 C0a6y. Issue:

 745/45< < 6/ /45 <5la/6s4 K5< & C a6d *S Ru??5< -as /4a/  a v56d<v56d55 < <6=al?<@5
T45 <5la/6s4 ?5/-556 /450 s 65  ?<@55 < a>56=y. T4a/ /45 5//65< K5< & C., L/d. s, ?y =6/56/  *.S. Ru??5< I6/5<6a/6al s ?<65 u/ ?y /45 a=/s /4a/ 1. )5//65< =a6 dss5  /45 <du=/s  /45 C0a6y 6ly / =56056/ /45 <du=/s,  -4=4 <50a6 <5 sal5s du<6> /45 06/4 +. T45 <55s / @55 /45 =6s>65d >ds ully  6su<5d u6d5< 6su s/=@ -4=4 0ay ?5 =45=@5d ?y a6 au/4<;5d <5<5s56/a/v5   /45 <05< . *6 /5<06a/6 < =a6=5lla/6  /45 A><55056/, all >ds 45ld 6 =6s>6056/ s4all ?5 45ld ?y 5//65< < /45 a==u6/  /45
9

LLB 2A 

. SC!"ID & OBERL#, INC. (S. R$L "ARTINE% G.R. N. +198 1 SCRA '9

O=/?5< 18, 1988

Facts:

R$L "a C<a>5d 6 d55s5a s46>. I6 /45 =u565a/a >565
u<=4as5d 12 ?5654 a6 <<5v=a?l5 l65  =<5d/, Na>a/a s45d / /45 S=40d /45 >565565565565565565565 9 -5<5 6/ <5la=5d.

R$L su5d /45 d556da6/ 6 /45 -a< < <5s=ss6  /45 =6/5655s. S=40d s5s su=4 la?l/y av5<<6> /4a/ / -as 05<5ly /45 6d56/< 6 /45 sal5 ?5/-556 Na>a/a C., /45 5a6s/ 4dd56 d55=/s, S=40d 6/ 4av6> 5
1 7ON /45 s5=6d /a/6s / 0ay ?5 la?l5. Bu/ 6 /4s =as5, S=40d dd 6/ -a<
 A6 6d56/< s a 0ddl50a6 6 /45 sa05 =lass as =005<=al ?<@5565a>5d, < /45/a/6> =6//a/< ?5/-556 /45< a 6 4s -6 6a05 ?u/ 6 /45 6a05  /4s5 -4 50ly5d 40 45 s s/<=/ly a 0ddl50a6 a6d < s05 u<s5 /45 a>56/  ?/4 a 6 /45 =u6/ds a<5 / ?5 ?u>4/. T45 =45  5a/u<5  a =005<=al ?<@5< a6d a =005<=al 05<=4a6/ s /4a/ 6 55=/6> a sal5, /45y a<5 05<5ly 6/5<05da<5s < 0ddl5056, a6d a=/ 6 a =556/  ?/4 a enerators !ere purchased #through indent order.+ R/% admitted in its demand letter pre"iousl1 sent to C'I* that 2 of 4 generators #!ere purchased through 1our compan1, b1 indent order and three 536 b1 direct purchase.+ he

5vd56=5 als s4-s /4a/ R$L "ARTINE% ad d<5=/ly NAGATA CO, < /45 >565565a/a a6d R$L, ?y <=u<6> a6  /45 sa05 / Na>a/a < -4=4 /45 =0a6y <5=5v5d a =00ss6 <0 Na>a/a. 1

LLB 2A 

'. FILIN(EST CREDIT COR). (S. CO*RT OF A))EALS G.R. N. 82+8 18 SCRA 188

S5/50?5< 29, 1989

Facts:

!5<56 <va/5 <5s6d56/sH sus5s $s5 Sy Ba6> a6d Ilu06ada Ta6 -5<5 56>a>5d 6 /45 sal5  >  )++,.. T45y al5d < 6a6=al asss/a6=5 <0 45<56 5//65< Fl6v5s/ C<5d/ C<<55d / 5/56d 6a6=al ad 6 /45 =5<55d / l5as5 <0 /45 5//65< /45 <=@ = <0 $uly +, 1981, aya?l5 as ll-s )1,. P ua / /45 2' 06/4ly <56/als. I6 add/6, / >uaa>5 v5< /- a<=5ls  la6d 6 av<  /45 5//65<. T45 <=@ =a>5. T45 sus5s l5d a =0la6/ ?5<5 /45 RTC. T45 RTC <56d5<5d a d5=s6 6 av<  <va/5 <5s6d56/. T45 5//65< 5l5va/5d /45 =as5 / CA -4=4 a<05d /45 d5=s6 6 //. !56=5, /4s 5//6. Issue:

1. 745/45< < 6/ /45 6a/u<5  /45 =6/
Held:

1. #5s. T45 6/56/  /45 a<55056/ 4as ?556 =</=;5d as a l5as5 6ly 6 6a05. S5ll5 =6d/6al sal5s  /45< >ds, ?u/ -4 d 6/ -s4 56ly  / 0a@5 a ?a<>a6 6 /4a/ <0, < 65 <5as6 < a6/45<, 4av5 <5:u56/ly <5s/<5d / /45 d5v=5  0a@6> =6/4u/ /45 /5<0 s ad, //l5 s4all /45<5u6 v5s/ 6 /45 l5ss55. I/ s ?vus /4a/ su=4 /a<55d a0u6/ <5sul/s, ?y /45 /5<0s  ?a<>a6, 6 /45 / <505d5s 1 5a=/ ulll056/  ?y /45 u<=4as5<  /45 ?l>a/6 2 =a6=5l /45 sal5 <  <5=ls5 /45 0a>5 6 /45 11

LLB 2A 

u<=4as5d <54 /45 s5/u, /45 v56d<,  ?y <5/a66> -65us5  ?56> /45 l5ss<, <5/a6s, l@5-s5 /45 <>4/ / <5ss5ss /45 sa05, -/4u/ >6> /4<u>4 /45 <=5ss  <5=lsu<5, 6 /45 5v56/ /45  v56d55l5ss55 d5aul/s 6 /45 ay056/  /45 6s/all056/s. T45<5 a<s5s /45<5<5 6 655d / =6s//u/5 a =4a//5l 0a>5 v5< /45 0va?l5 sld. "<5 0 /45 <5 /45 =6/5/s / @55 all /45 6s/all056/s=u0<56/als al<5ady ad.

12

LLB 2A 

+. L*%ON BROKERAGE CO (S. "ARITO"E B*ILDING CO. G.R. N. L2+88+ ' SCRA 9 Facts:

$a6ua
I6 "a6la, "y5
contract called a #*eed of Conditional ale+ !ith 'aritime $uilding. '1ers sold the land for 

)10ll6. T45y a><55d 6 /45 0a665<  ay056/ 6s/all056/, 6/al ay056/ u6 55=u/6  =6/ < a 06> 6a6=al <?l50s. "y5
us5 a6d ==ua/6 a0u6/6> / )1@ 5< 06/4.

I6 /45 05a6/05, Lu;6 B<@55 -as l5as6> /45 <5, /45 contract bet!een 'aritime and %u8on !as etended for 9 more 1ears. urns out, 'aritime‘s

sus56s6  /s ay056/s / "y55s 0ad5 ?y /45 Cu5. F! "y5
Lu;6 B<@55 =0a6y. T4s 6d506=a/6 s < /45 a-a5s ?y /45 CIR S=45dl5< =la0s /4a/ a/5< F! "y5 ay056/s / "y5<55056/. TC
1. !as /45<5 ?556 a ?<5a=4  =6/
Held:

 #5s. Falu<5 / ay 06/4ly 6s/all056/s =6s//u/5 a ?<5a=4  =6/d a/4. T45 l5//5< / "y5 < a6 all5>5d <0s5  /45 d5ad F! "y5a/6 F! "y5a/6  "y5<55d / assu05 <5s6s?l/y / d5?/s  F! "y5s  F! "y5 la?l/y. By /45  ?ala6=5  ay056/ 6 /45 D55d  C6d/6al Sal5, "a</05 -as a//50/6> / ?ua6s/ F! "y5 -656;5d  ?y /4s Cu /45 -5<  <0s
LLB 2A 

=as5  alu<5  /45 /45< a4/s a<5 5<5ssly <vd5d <, as 6 /4s =as5. D5=s6 a<05d.

1'

LLB 2A 

 ALA7I, SITTI FATI"A ". . DIGNOS (S. CO*RT OF A))EALS G.R. N. L+92 1+8 SCRA +

F5?
Facts:

I6 $uly 19+, 45<56 5//656s a6d Isa?5la Lu0u6>sd d5 D>6s sus5s D>6s sld /45< a<=5l  la6d 6 O6, LauPLau / 45<56 <va/5 <5s6d56/  A6/6 $a?l < /45 su0  )28, aya?l5 < /- 6s/all056/s, -/4 a6 assu0/6   6d5?/5d65ss -/4 /45 F6s sld /45 sa05 a<=5l  la6d < )+, / d556da6/s Lu=a6 Ca?>as a6d $v/a L. d5 Ca?>as sus5s Ca?>as -4 -5<5 /456 *S =/;56s, a6d 55=u/5d 6 /45< av< a6 A?slu/5 D55d  Sal5 duly  <5>s/5<5d 6 /45 O=5  /45 R5>s/5<  D55ds. *6 ds=v5us/ 19+ d5=la<6> /45 26d sal5 / /45 sus5s Ca?>as 6ull a6d vd a? 6/ a6d /45 1s/ sal5 / $a?l 6/ <5s=6d5d. T45 CFI  C5?u als  )1, / /45 sus5s D>6s a6d / <50?uas a <5as6a?l5 a0u6/ =<<5s6d6> /45 556s5s 6 /45 =6s/6s -5<5 als as. B/4 $a?l a6d /45 sus5s D>6s a5al5d / /45 Cu /45 556s5s  /45 sus5s Ca?>as < ?uld6> a 56=5. T45 sus5s D>6s =6/5s/5d /4a/ /45 =6/
 745/45< < 6/ /45 =6/
Held:

T45 Su<505 Cu s/a/5d /4a/ all /45 5l5056/s  a vald =6/6s 4ad 6 <>4/ / s5ll /45 la6d 6 :u5s/6 ?5=aus5 a6 a=/ual d5lv56s 65v5< 6/5d $a?l ?y 6/a<al a=/ /4a/ /45y -5<5 <5s=6d6> /45 =6/ /4a/ $a?l <5 4s <>4/s / /45 la6d 6 :u5s/6.

1+

LLB 2A 

. "ARTIN (S. RE#ES G.R. N. L''2

$uly 28, 19+2

Facts:

R5s6d56/ )5d< R5vlla a6d "a<a R5y5s ?/a65d <0 /45 La )<5vsa>5d /45 <5ua <5ay056/  /45 d5?/ 6 6s/all056/s -/4 6/5<5s/ a/ 12 5< =56/ 5< a66u0. I/ /u<65d u/ la/5< /4a/ "6/5 d5 )5dad y Caja d5 A4<<s 4ad ?/a65d a jud>056/ a>a6s/ )5d< R5vlla < /45 su0  )'+, a6d 4ad l5v5d 55=u/6 /45<5< u6 /45 <5s, all5>6> 66ay056/  /s =<5d/ ?y /45 0a> / all- <5s6d56/s / <5u<=4as5 /45 <565d ?y  "a<a R5y5s s>6y6> 45< ass56/. Issue:

 745/45< < 6/ /45 <5s6d56/s <54/ / <5u<=4as5M

Held:

N. T45 Cu /45 <5
<5usal  A//y. )5/5 A. R5vlla -4 -as a=/6> 6 ?54al  a5ll55 Ca6u/ "a /4a/ /45 la//5<s <>4/ -5<5 al<5ady =5d5d / a5ll55 Ca6u/ "a 65. 75 6d /4a/ /45 la6/ "a<a R5y5s, a==0a65d / 65 "a<=5la "/a d5 "al6s dd 0a@5 a6 5< / <5d550 /45 <54/s  /45 la6/s 6 v5-  /45 <5usal / accept an1 amount less than P9,000.+

1

LLB 2A 

8. "INDANAO ACADE"#, INC. (S. #A) G.R. N. L181 1 SCRA 19

F5?
Facts:

By d55d 56//l5d J"u/ual A><55056/J, 55=u/5d 6 "ay 1, 19', Rs56da A. d5 Nu:u a6d 45< s6 S/5< D6s, $<. sld /4<55 a<=5ls  <5sd56/al la6d 6 O<:u5/a, "sa0s O==d56/al, a6d a6/45< a<=5l 6 O;a0s C/y 6 av<  Ild56s D. #a. I6=lud5d 6 /45 sal5  -5<5 =5s s/ua/5d 6 sad la6ds as -5ll as la?><5>a/5 <=5 s/a/5d 6 /45 d55d -as )1,., / ?5 ad a== / /45 /5<0s a6d =6d/6s s5=5d 6 /45 =6/65d /45 6s/4 45< u6=l5 a6d sus5d a//<65y6a=/, R5s//u/ A?u/6. T45s5 /4<55  Rs56da a6d 45< /- =4ld<56 a?v5 6a05d  a<5 <55<<5d / 6 /45 d55d as /45 -655d /45< 6a05s / !a5s. Issue:

 745/45< < 6/ /45 "6da6a A=ad50y =a6 <50?u
Held:

 #5s. T45 a5lla6/ =la0s <50?u5dly  6/<du=5d 6 /45 s=4ls, =6ss/6>  a 65- ?uld6> - )8., ?5sd5s la?056/  /45 /<al =us a6d ><u6ds d5s=<?5d 6 /45 0u/ual a><55056/ />5/45< -/4 all /45 5<0a656/ 0<v5056/s /45<56.J I /45 d556da6/ =6s/, as 45 all5>5s, 45 =a66/ <5=v5< /s valu5 ?5=aus5 /45 =6s/  /45 a=/6 < a66ul056/, /4us <56d5<6> 40 a ?uld5< 6 ?ad a/4 -4 s d565d ?y la- a6y <>4/  <50?u4/ 6 ?y 40, 45 s 6/ 56//l5d / <50?u056/ d5s 6/ a-a5d s < /45 d556da6/ / <5s/<5 / /45 "6da6a  A=ad50y, I6=. all /45 ?@s, la?<55056/ a6d s5=5d 6 /45 I6v56/4/ 6 ?y /45 d556da6/ s u/sd5 /45 s=5  /45 jud>056/ a6d 0ay ?5 <5/a65d ?y 40.

1

LLB 2A 

9. ESTO3*E (S. )A$I"*LA  G.R. N. L2''19

$uly 1+, 198

Facts:

L/ N. 82  /45 Cadas/6ally -65d ?y /45 la/5 sus5s, Rs56d )5<5; a6d F4/ a6d a  1  A:u/a6a a6d Au< 2 -5s/5<6 al <5d50/6 6 a =la0 /4a/ s45 s a = -65<  L/ N. 82, < 4av6> u<=4as5d 1  a6 a<5a  ' s:ua<5 05/54/ /45 1 su/45as/5<6 <5>a/5d, 456=5 /45<5 5s/5d 6 =-654/ /45 a<5sad 4/  l5>al <5d50/6 =a6 ?5 55<=s5d < /a@56 adva6/a>5 . Es/:u5Hs s/a6d s /4a/ /45 d55d 6 45< av<  -as 65 /45 d5s=</6 6 /45 d55d /s5l, < /45 <5as6 /4a/ /45 v56d<, ?56> a 05<5 =-65<, 4ad 6 <>4/ / s5ll a6y d56/5  / /45 s5ll6> =-65< s 6/ @6-6 u6/l au5s /4a/ /45 sal5 6 45< av<, al/4u>4 d5s=<?6> a d56/5 a<5a, s4uld ?5 =6s/ =6v5y5d 6ly /45 u6dvd5d 1 6/5<5s/ 6 L/ 82 -65d a/ /45 /05 ?y /45 v56d<, C<s6a )5<5; (da. d5 A:u/a6a.  745<5<5, -456 /45 65/ day sad v56d< a=:u<5d /45 2 6/5<5s/  45< /- /45< =-65u5s, -456 C<s6a sld /45 <5s/  /45 <5 a6 u6dvd5d2 /4a/ a5lla6/, as =-65<, -as 56//l5d / <5d550, u 0ay 55<=s5 /45 <>4/   <5d50/6 6 =as5 /45 s4a<5s  all /45 /45< =-65<ssly 5=5ssv5 /45 <5d50/65< s4all ay 6ly a <5as6a?l5 65. S4uld /- < 0<5 =-654/  <5d50/6, /45y  0ay 6ly d s 6 < -65d 6 =006. Issue:

 745/45< < 6/ <>4/  <5d50/6 =a6 ?5 55<=s5d ?y Es/:u5M

Held:

NO. A5lla6/ Es/:u5 ?5=a05 /45 a=/ual -65<  /45 Su/4 5as/5<6 /44/ y5a4/ / <5d550 /45 <5
LLB 2A 

=l5a /4a/ /45 s5ll5<, C<s6a )5<5; (da. d5 A:u/a6a =uld 6/ 4av5 sld /4s a 6 /45 d55d  sal5 / jus/y su=4 65<56=5. T4a/ /45 s5ll5< =uld 4av5 valdly sld 45< 65/4 =-65 s5lls < al56a/5s a6d d5lv5
19

LLB 2A 

1. SEG*RA (S. SEG*RA  G.R. N. L292

S5/50?5< 19, 1988

Facts:

T45 la6d 6 :u5s/6 =6ss/s  ', s:ua<5 05/56ally <5>s/5<5d u6d5< O<>6al C5s// a<u6d / dvd6> /45 <5 /450s5lv5s. T4s =6/<v5 /45 u< ?</45 d5d -/4u/ ssu5 -4 a<5 6vlv5d 6 /4s =0la6/ < <5=v55s. T45 =6l=/ ?5>a6 -456 6 A<l , 19'1, /4<55  /45s5 665 >a/6> /45 56/<5 <5s/5<5d 005da/5ly, ?u/ 6ly 6 19', < v5 y5a
 745/45< < 6/ /45 la6/ =a6 aly <5s=</6 6 a=:u<6> /45 la6d.

Held:

I/ s 6/5d /4a/ -456 A0jd s5=u<5d /45 <5>s/ /45 d55d  sal5 55=u/5d 6 4s av< ?y /45 a4/s 0>4/ 55056/  /45 ss?l/y /4a/ a 4/ 6/ ?5l6> / 40 a6d /45 =00/056/ /4a/ 45 -uld ?5 4ld6> su=4 a5< =a<<5d /45 sad 56=u0?s/a6s/ /45 a5lla6/s 45<56. A6d as /45 =5 6 /45 sad 45a6s/ /450 /45 5<d  <5s=</6. T45 <5=s/5<5d 6 /45 6a05  "<5 6 19+ ll-6> 45< u<=4as5 -/4u/ a=@6-l5d>5056/   /45 =454/s, /45 1y5a< <5s=</v5 5<d -uld 4av5 s/aa6 a>a6 6 F5?4 /45 d5<56/ s/a 6/ / us5d, 5<<65usly, -as 19'1, da/5  /45 5/
2

LLB 2A 

 ALLA"A, !AIDIS!EENA A. 11. RE)*BLIC OF T!E )!ILI))INES (S. CO*RT OF A))EALS G.R. N. 128+1 1+ SCRA '8

O=/?5< 2, 1999

Facts:

)<va/5 <5s6d56/ (=56/5 #ua6>= s /45 -65<  a u6/ 6 a =6d06u0 ?uld6> 6 L5>as S/<55/, "a@a/ C/y, as 5vd56=5d ?y C56al T<al Cus/s/5<  D55ds  "a@a/ / =0056/ 6 /45 5//6 a6d /45<5a/5< s5/ /45 =as5 < 6/al 45a<6>. Issue:

 745/45< < 6/ 6 a <=55d6> < /45 ssua6=5  a6 -65v5 su=4 6/=5 -uld <56d5< /45 <=55d6>s vd. Held:

T45 d5=s6  /45 Cu /4a/ /45 la- d5s 6/ 0s5 su=4 6/=5 <5:u<5056/ 6 <=55d6>s < /45 ssua6=5  a 65-  -65s/us45d <0 u< s 6 =adas/s/6al la6d <5>s/s -4=4 <5:u<5 /4a/ /45 Sl=/< G565 /45 /05l65ss  /45 a5al l5d  ?y /45 >v5<6056/, /45 da/5  4s <5=5/  /45 d5=s6s /45<56 a6d 6/ /4a/  /45 D<5=/<   La6ds <  4s /45< <5<5s56/a/v5s. T45 ssu5 a6d /45 al=a?l5 la-s 6 /4s5 =as5s a<5 d5<56/.

21

LLB 2A 

12. TO"AS T. TEODORO (S. T!E CO*RT OF A))EALS G.R. N. 1'99 1 SCRA 2

S5/50?5< 1, 22

Facts:

)A"I D5v5l056/ C<s/5<5d -/4 /45 "66> R5= 066> =la0s =la0s / a a<=5l a<=5l  la6d la6d =6ss =6ss/6 /6>>  18+.8 18+.811 11 45=/a 45=/a<5s <5s,, l=a/5 l=a/5d d a/ Sa6 "a/5 "a/5,, N<;a N<;a>a< >a> L5as5 L5as5 C6/ =la0s / <5s6d56/ <5s6d56/ C6/656/al C5056/ C<@a0al>a6, N<;a>a =la0s  <5s6d56/.

Su?s5:u56/ly, /45 T5d<s l5d -/4 /45 /456 "6s/<u6d  66d5v5l056/  065 066> l5as5 l5as5 =6/a/6s u6d5< /45 la-. Issue:

 745/45< < < 6/ /45<5 -as 5/<6s= 
Held:

E/<6s=  aa/6 -4=4 s =00//5d u/sd5  /45 /<al  /45 =as5, -45<5?y /45 u6su==5ssul a ully 4s =as5, ?y a a /<al < <0 <5s56/6> 4s 56/<5 =as5 / /45 =u 6/ / /45 jud>056/ /s5l ?u/ / /45 0a665< 6 -4=4 / s <=u<5d. <=u<5d. T45 v5<<d6> =6sd55d s /4a/ /45  l/>a6/ <5v56/5d a a 4s day 6 =u
22

LLB 2A 

1. #* TEK AND CO., (S. BASILIO GON%ALES G.R. N. L99+ 29 )4l. 8'

F5?
Facts:

 A =6/5s a=@6-l5d>5s /45 <5=5/  )4,  <0 #u T5@ & C., a6d /4a/ 6 =6sd5a/5s 40s5l / d5lv5< / /45 la//5<  =uls  su>a<  /45  / /45 <5sul/  la<;a/6, -/46  06/4s. T45<5 s a s/ula/6 <vd6> < <5s=ss6 -/4 )41,2 56al/y 6 =as5  alu<5 / d5lv5<. N su>a< -as d5lv5<5d, s la6/  l5d a =as5  < /45 jud>056/  )4, lus )41,2. )4, -as a-a
a 745/45< =0la6=5 =0la6=5  /45 /45 ?l>a/6 / d5lv5< d5lv5< d556ds d556ds u6 /45 <du=/6 6 d556da6/Hs la6/a/6. ?745/45< /45<5 s a 5<5=/5d Sal5. Held:

a T45<5 s 6/ /45 sl>4/5s/ 6/0a/6 6/0a/6 6 /45 =6/a< -as / ?5 all /45 5ss56/al =6d/6s   /45< =6/    -<//56 =6/ 6=< 6/ /45 =6/, u6l5ss /45<5 4as  ?556  s4-6> /4a/ a aa6, 6 Ev5la6d vs. Eas/5<6 "66> C. 1' )4l. R5., +9 a =6/4/ / 6/5<s5 as a d556s5 / <5=v556/ u6 /45 la6/s 50ly056/ <5du6d6> / /45  ?565/  /45 d556da6/ =0a6y. T45 =6/<55056/ a><55056/ a <0s5  sal5 a6d 6/ a sal5. A/ /45<5 -as 6 5<5=/5d sal5, / s =l5a< /4a/ a d5aul/5d 6 4s 56>a>5056/, /45 la6/ s 56//l5d / <5=v5< /45 ), -4=4 / adva6=5d / /45 d556da6/, a6d /4s 056/ a5al5d a5al5d <0 0us/ 0us/ /45<5<5 /45<5<5 ?5 a<05d. a<05d.

2

LLB 2A 

1'. ONG $ANG C!*AN (S. 7ISE & CO. LTD G.R. N. L19  )4l. 9

$a6ua
Facts:

T4s s a6 a5al <0 a jud>056/  /45 Cu /45 d556da6/ / ay /45 la6/ /45 su0  )1,2.+, />5/45< -/4 6/5<5s/ a6d =s/s, as da0a>5s < a ?<5a=4  =6/ /45 06/4s  S5/50?5< a6d O=/?5< 4ad / =05 <0 Aus/v5<6056/  Aus/
 745/45< < < 6/ /45<5 -as a 5<5=/5d 5<5=/5d sal5.

Held:

T45 T45 jud> jud>05 056/ 6/ a5 a5al al5d 5d <0 <0 s a a<0 <05d 5d,, -/4 -/4 =s/s =s/s a>a a>a6s 6s// /45 /45 a5 a5ll lla6 a6/. /. T45 T45 u6d5 6>  /45 d556da6/ d556da6/ -as / s5ll / /45 la6/ la6/ 1, sa=@s  J"a6J J"a6J lu< a/ )11.+ )11.+ 5< ?a<<5l, + sa=@s / ?5 d5lv5<5d 6 S5/50?5< a6d + 6 O=/?5<. T45<5 -as 6 d5lv56a/5 /45 a<5>a/5d <0 all /45< a<55d / d5lv5< 6 S5/50?5< a6d O=/?5<. I/ s /45<5<5 =l5a< /4a/ u6d5< /45
2'

LLB 2A 

1+. B*NGE COR). ET. AL.(S. ELENA CA"ENFORTE AND CO". G.R. N. L''' '8 O. Ga;. 

 Au>us/ 29, 19+2

Facts:

 A =6/5 C<56=5s -45<5?y /45 <05< sld / /45 la//5< + l6> /6s  05<=4a6/a?l5 )4l65 =5 5< s4 / /45 /5<0s a6d =6d/6s  /45 =6/ /45 06/4  Nv50?5< < D5=50?5< 19', / Sa6 F<55d u6 a6d /4a/ ?5=aus5  /45 alu<5  /45 v56d< / ulll /s =6/<55d u6 -/46 /45 5<d s/ula/5d, /45 v56d55 4as su5<5d da0a>5s. da0a>5s. (saya6 <du=/ =6/56d5d /4a/ 6 =6/65d ?y (=56/5 K4, /45 0a6a>5< a6d =6/<ll6> s/=@4ld5< 6 (saya6 <du=/ Ta=l?a6, ?u/ 45 -as 6/ au/4<;5d / s>6 a =6/65d /45 =6/5s ?y   (saya6 )<du=/ )<du=/ / Bu6>5 C<. C<. Issue:

 745/45< < 6/ /45<5 -as a 5<5=/5d 5<5=/5d =6/5 C<
Held:

 75 a<5  /45 66 /4a/ /45 l-5< =ua /45 / 6 /45 =6/ /4a/ /45 =6/ 0<?a?l5 < /45 a5ll55s / s5ll =5 /45 <5sul/  /4s =as5 =6sd5<6> /4a/ la6/s a5ll55s dd 6/ a5al <0 /45 d5=s6. JI/ 4as ?556 45ld /4a/ a5ll55, -4 s 6/ a5lla6/, 0ay als ass>6 5<<056/ 6 /45< ><u6ds, ?u/ 45 0ay 6/ d s  4s u<s5 s / 4av5 /45 jud>056/ 0d5d < <5v5a6s/ a5lla6/s.

2+

LLB 2A 

 A"ILASAN, "O!A""AD G!A"IDI I. 1. )ATERNO (S. SAL*D G.R. N. L1+2 9 SCRA 81

S5/50?5< , 19

FACTS:

D556da6/ =la0s / ?5 /45 -65<  /45 la6d -4=4 la6/s s55@ / <5=v5< 4av6> ?556 6 adv5 <5>s/5<5d / 6 4s 6a05 R5>s/us/6 )a/5<6, a=:u<5d a/ a6 au=/6 sal5 =56> / Es/5?a6 d5 (lla. T45s5 6=lud5s /45 la6d 6 :u5s/6 -4=4 =6/a65d + 45=/a<5s. I6 192, all /45s5 la6ds -5<5 adjud=a/5d / C6=5=6 )a/5<6 (da. d5 )adlla, dau>4/5<  /45 la/5 "a06 "l A>us/6 )a/5<6 as 45< s4a<5 6 /45 5s/a/5. I6 /4a/ y5a<, /45 l5as5  /45 la6ds / /45 D5 (llas -as 6/ <565-5d a6d s /45< ss5ss6 -as <5/u<65d / /45 )a/5<6s. I6 19', C6=5=6 )a/5<6 d5d l5av6> all /45 la6ds s45 -65d 6 Ba/a6>as, 6=lud6> /45 65 6 :u5s/6, / la6/s as 45< 45>5< )a<=5l  .+28+ 45=/a<5s  -4=4 / -as <>6ally a a
 745/45< < 6/ /45 + 45=/a<5s  la6d s -65d ?y /45 d556da6/

HELD:

T45 Su<505 Cu d556da6/ -65<  /45 a<=5l  la6d =la05d 6 4s =u6/5<=la0. T45 5vd56=5 s4-s /4a/ la6/ <5d5=5ss< 66/5<5s/ C6=5=6 )a/5<6 (da. d5 (lla s5=u<5d 6 1928 O<>6al C56ally a=:u<5d ?y /45 )a/5<6s 6 1912. T4s -as l5as5d / Es/5?a6 (lla a6d )a d5 (lla <0 191 / 192+ sus/v56 / /45 D5 (llas, a6d u6 /45 d5a/4  C6=5=6 )a/5<6 (da. d5 )adlla, / -as /s/5<5d 6 /45 6a05  /45 )a/5<6s 6 1928 a6d / -as 6ly 6 Nv50?5< 19, 19+2, da/5  d556da6/ a6s-5<, /4a/ 45 su>4/ /s <5=6v5ya6=5 / 40, /4a/ //l5  ?5=a05 6d55as?l5 u6d5< S5=/6 8, A=/ N. '9, as a056d5d ?y A=/ N. .

2

LLB 2A 

1. $OSE SANTA ANA, $R. (S. ROSA !ERNANDE% G.R. N. L19' 18 SCRA 9

D5=50?5< 1, 19

FACTS:

Sus5s $s5 Sa6/a A6a, $<. a6d Lu sld a la6d 6 Bula=a6 / <5s6d56/ Rsa !5<6a6d5; < 11, 5ss lu0 su0. T45<5 -5<5 /- /45< <5vus sal5s / d5<56/ v56d55s  /45< <55 / /45 a6> /4a/ !5<6a6d5; s ==uy6> 6 5=5ss  1 s:ua<5 05/5<  /45 la6d sld. !5<6a6d5; =la0s /4a/ /45 5=5ss a<5a s a4/. ISSUE:

 745/45< < 6/ /45 5=5ss a<5a ==u5d ?y !5<6a6d5; s a
HELD:

T45 sal5 6vlv5s a d56/5 a6d d56/5d /a/5d /45  v56d<5a/5< < s0all5< /4a6 -4a/ s <5=/5d 6 /45 d55d. T 4ld /45 ?uy5< / 6 0<5 /4a6 /45 a<5a <5=/5d 6 /45 d55d, / 0us/ ?5 0ad5 =l5a< /45<56 /4a/ /45 sal5 -as 0ad5 ?y u6/  05asu<5 a/ a d56/5 <=5 < 5a=4 u6/. T45 sal5 6 /4s =as5 6ly 6vlv5s /45 d56/5 ?u6da<5s ?u/ 6ly a<0a/5 la6d a<5as. As su=4, A /45 sal5  lu0 su0 0us/ ?5 =6sd5<5d.

2

LLB 2A 

18. SIBAL (S. (ALDE% G.R. N. L228 + )4l. +12

 Au>us/ ', 192

FACTS:

)la6/ all5>5d /4a/ /45 d556da6/ (/ala6 "a0a-al, d5u/y s45<  /45 )<v6=5   Taa, a//a=45d a6d sld / /45 d556da6/ E0la6 $. (ald5; /45 su>a<=a65 la6/5d ?y /45 la6/ a6d 4s /56a6/s 6 s5v56 a<=5ls  la6ds. )la6/ 5<5d / <5d550 sad su>a<=a65 a6d /56d5<5d / /45 d556da6/ (ald5; /45 a0u6/ su=56/ / =v5< /45 <=5 ad ?y /45 la//5<, /45 6/5<5s/ /45<56 a/5< /45 u<=4as5, a6d /45 6/5<5s/ =<<5s6d6> /45<5/. !-5v5<, (ald5; <5us5d / a==5/ /45 065y a6d / <5/u<6 /45 su>a<=a65 / /45 la6/. "5a6-4l5, d556da6/ a<>u5d /4a/ /45 su>a< =a65 -as 5
 745/45< < 6/ u/u<5 =<s / ?5 4a
HELD:

 #5s. A vald sal5 0ay ?5 0ad5  a /46>, -4=4 /4u>4 6/ y5/ a=/ually 6 5s/56=5, s <5as6a?ly =5 al<5ady 6 5s/56=5 a6d /456 ?5l6>6> / /45 v56d<, a6d /456 //l5 -ll v5s/ 6 /45  ?uy5< /45 0056/ /45 /46> =05s 6/ 5s/56=5. E05 vs. )a=@55, 21 A0. S/. R5,   A 0a6 0ay s5ll <5
28

LLB 2A 

19. L*IS )IC!EL (S. )R*DENCIO ALON%O G.R. N. L92 111 SCRA '1

$a6ua
FACTS:

) /45 da/5  sal5, /45 la6d -as s/ll l5as5d / 65 Ra06 Sua, a6d / -as a<55056/  /45 sal5 /4a/ /45 su0  ,+. -as / ?5 ad ?y v56d< / Ra06 Sua as / <5l5as5 /45 la6d. T45 RTC d5=d5d 6 av<  /45 v56d<, du5 / /45 a=/ /4a/ /45 d55d  sal5 /4a/ -as 55=u/5d -as 6vald, du5 / /s sus5d vla/6  R.A. N. ', 6 -4=4 /45y 5:ua/5d /45 d55d  sal5 55=u/5d ?y /45 a
 745/45< < 6/ /45 d55d  sal5 s vald

HELD:

 #5s, /45 RTC 5<<5d 6 =6s/ /45 d55d  sal5 as a =6/u/y / 05<5ly  =6/a /45 =6/ <5=5v5d /45 =6sd56 /45 vald/y   /45 =6/d a/4 a6d =6sd55056/  /45 l-5< =u
29

LLB 2A 

2. B*CTON (S. GABAR  G.R. N. L+9 ++ SCRA '99

$a6ua
FACTS:

N=a64/ a la6d <0  (lla<6 6 6s/all056/ ?ass. $s56a /456 56/5<5d 6/ a v5<55056/ -/4 N=a6<55d. S45 ad /45 6/al a0u6/ 5vd56=5d ?y a <5=5/. Bu=/6 /456 /@ ss5ss6  /45 la6d a6d 0ad5 /45<56 0<v5056/s. 7456 a d55d  sal5 -as 55=u/5d 6 av<  Ga?a< < /45 la6d, Bu=/6 su>4/ / ?/a6 a s5a /4a/ /45 a=/6 < s5== 5<<0a6=5 -as ?as5d 6 /45 <5=5/  /45 6/al ay056/ -4=4 -as 55=u/5d 22 y5a, /4us 4ad al<5ady <5s=<?5d 1 y5a<55056/ P  Au5s /4a/ as -654/  a=/6 dd 6/ <5s=<?5. ISSUE:

 745/45< < 6/ Bu=/6Hs <>4/  a=/6 / =05l Ga?a< / 55=u/5 a <0al d55d   =6v5ya6=5 6 /45< av<, 4as <5s=<?5d. HELD:

N. T45 <5al a6d ul/0a/5 ?ass  5//656;5 /45 sal5 0ad5 a6d /4a/ as Bu=/6 a<5 6 ss5ss6  /45 la6d, /45 a=/6 s 0<5s=</?l5.



LLB 2A 

 A3*INO, C%ARINA ADELENE $. 21. RE)*BLIC OF T!E )!ILI))INES (S. LIC!A*CO, ET AL. G.R. N. L21' ' SCRA +

 Au>us/ 18, 192

FACTS:

T45 R5u?l=  /45 )4l65s, ?y au/4</y  R5u?l= A=/ N. 1', <5<5s56/5d ?y  /45 La6d T56u<5 Ad06s/as6a6 a =0la6/ a>a6s/ /45 d556da6/s < /45 5<<a/6  /45 la6ds  /45 J!a=56da El )as6a6. I6 /45 =0la6/ / -as all5>5d, a06> /45< /46>s, /4a/ /45 =6/6uus a>4 /45 u<=4as5  sad <5v5<6056/. D556da6/s, 6 /45< a056d5d 0/6 / ds0ss, su>4/ /45 ds0ssal  /45 =0la6/, all5>6> /4a/ /45 4a=56da -as 6 l6>5< a =-65 /45 s5v5
/ s s/ula/5d, a06> /45< /46>s, /4a/ J/45 la6/ s4all 4av5 /45 /6 / ?uy /45 sad  <=5 as 6 /4s 5<<a/6 =as5J. ISSUE:

 745/45< < 6/ /45 sal5  <5

HELD:

 #5s. 745<5 / -as 5<5ssly s/ula/5d /4a/ 6 /45 5v56/ /4a/ /45 d5<56=5 6 a<5a s s/ll su?j5=/  jud=al d5/5<06a/6 s adjus/5d a6d< adjud=a/5d 6 av<  d556da6/ = -65 <=5 as 6 /4s 5<<a/6 =as5J, sad s/ula/6 4as /45 <=5   la- ?5/-556 /45 =6/ a
1

LLB 2A 

22. DEL ROSARIO (S. SANTOS, ET AL. G.R. N. L'892 18 SCRA '

S5/50?5< , 1981

FACTS:

O6 $a6uaa6s/ /45 sus5s A6d<5s F Sa6/s a6d Au<5s all5>5dly < alu<5  /45 la//5< / 55=u/5 /45 D55d  C6<0a/6  Sal5  a6 u6dvd5d 2, s:ua<5 05/5s/ //l5s -/4 /45< =<<5s6d6> la6d a<5as a<5 TCT 2+8  ,2+ s:.0. TCT 2+81  19, 9 s:.0. a6d TCT 1+8  ',+ s:.0. I6 a 0/6 / ds0ss, d556da6/s l5ad5d, 6/5< ala, /45 d556s5s  la=@  ju<sd=/6  /45 =u5dly ?5=aus5 /45 d55d  sal5 -as da/5d S5/50?5< 28, 19' a6d sus5dly us45d. I/ s all5>5d /4a/ /45 d55d  sal5 -as 6ly a6 a==00da/6 ><55056/ -4=4 -as 65v5< 6/56d5d 6< 05a6/ / ?5 5d ?5<5 a 6/a5d /4a/ /45 =la0 6 -4=4 /45 a=/6 < su/ s u6d5d s u656<=5a?l5 u6d5< /45 s/a/u/5  
 745/45< < 6/ /45 sal5 s vald as / /45 =aus5 < ?j5=/  /45 =6/
2

LLB 2A 

HELD:

Su<505 Cu /45 la=@  a6y //l5 / /45 l/ ?y a5lla6/s a/ /45 /05  55=u/6  /45 d55d  sal5 6 av<   a5ll55 as /45<5 =a6 ?5 a sal5  a6 55=/5d /46> 6 a==s 4av6> a /56/al 5s/56=5 0ay ?5 /45 ?j5=/  /45 =6/ -ll =05 6/ 5s/56=5. T45 sal5  a va6 45 < 55=/a6=y s vd. T45 =as5 a/ ?a< s 6/ a =as5  a va6 45 < 55=/a6=y -4=4 s vd u6d5< /45 la-. T45 55=/a6/ <>4/ =a05 6/ 5s/56=5 < 0a/5<al;5d < /45 a5lla6/s a=/ually d5<v5d //l5s <0 L/ 1 -4=4 su?s5:u56/ly ?5=a05 /45 ?j5=/  su?dvs6. Fu5d als5 6/a<;a/6  /45 d55d  sal5 s  6 =6s5:u56=5. F< a sal5  <5al <54 /4a/ / ?5 6 -</6>. I/ 655d 6/ ?5 6/a<;5d. Bu/ /45 v56d55 0ay  aval  /45 <>4/ u6d5< As/5<5d 6 /45 R5>s/56u6565ss  /45 d55d  sal5 a<5 6/ <5ally 6 ssu5 6 /4s =as5.  As / /45 a5lla6/sH all5>a/6 /4a/ /45 a5ll55Hs =la0 s ?a<<5d ?y <5s=</6, /45  /45 /<al =u


LLB 2A 

2. TIB*RCIO L*TERO (S. SI*LIONG & CO. G.R. N. 112+ +' )!IL 22

$a6ua
FACTS:

O6 $u65 , 1919, /45 la6/ T?u<= Lu/5< a6d /45 d556da6/ Sul6> & C. 56/5<5d 6/ a =6/us/ 21, 1919, /45 sa05 ads, a6d /45< 556s5s /45 a0u6/  )',.1+. !av6> d5lv5<5d  =uls a6d + =a/5s   0us=vad su>a<, /45 //al valu5  -4=4 s ),'+.+8, 45 4ad s/ll a ?ala6=5  )1,199.8 / ay, a6d 12 =uls a6d '' =a/5s  su>a< / d5lv5<. *6d5< =6/ds, a6d /45< 556s5s /45 //al su0  ),82. !av6> d5lv5<5d 19 =uls a6d  =a/5s  0us=vad su>a<, /45 ull valu5 -45<5 s ),822.'', 45 4ad s/ll a ?ala6=5  ),1.+' / ay, a6d '9 =uls a6d 2' =a/5s  su>a< / d5lv5<. I6 a== / /45 =u<<56/ 0a<@5/ <=5, < /45 u6d5lv5<5d d5<56=5. I/ s =6/56d5d ?y /45 la6/a5lla6/ /4a/ /45 d556da6/ 4av6> adva6=5d 065y / /45 la6/ u6 ?/4 =6/v56 as a la6 aya?l5 6 su>a<, -4=4, a== / /45 la-, 0us/ ?5 =0u/5d 6 /45 ?ass  /45 0a<@5/ <=5 a/ /45 /05  d5lv5a< 6 /45 <5s5=/v5 da/5s  d5lv5
1 745/45< < 6/ /45 =6/ & C. a<5 < usu<us la6s  065y aya?l5 6 su>a< 2 745/45< < 6/ /45 la6/ 0us/ ay / /45 d556da6/ < /45 su>a< -4=4 /45 <05< al5d / d5lv5< 6 a==
T45 sal5  su>a< / ?5 d5lv5<5d a/ a u/u<5 d56/5 /05 a6d < a 5d <=5, a aal 5v56 /4u>4 sad <=5 s4uld <v5 / ?5 0u=4 l5ss /4a6 /45 0a<@5/ <=5 6 /45 da/5  d5lv5 su/ a>a6s/ /45 v56d< 005da/5ly u6 /45 la//5a< sld, a6d /4a/ 45 all-s s y5a4/ / ?<6> su=4 a=/6 6 a==u6/  la=45s, 6as0u=4 as su=4 a=/6s, a<s6> <0 a -<//56 =6/5s sus/a65d 6 a==u6/  /45 v56d5s =6ss/6> 6 /45 d5<56=5 ?5/-556 /45 <=5 s/ula/5d a6d /45 0a<@5/ <=5  /45 >ds a/ /45 /05 d5lv5
LLB 2A 

2'. KER & CO., LTD. (S $OSE B. LINGAD G.R. N. L281 8 SCRA +2'

 A<l , 191

FACTS:

)5//65< -as ass5ss5d ?y /456 C00ss65<  I6/5<6al R5v56u5 D06> /45 su0  

P20,272.33 as the commercial broker‘s percentage, ta, surcharge, and compromise pe 6al/y 

< /45 5<d <0 $uly 1, 19'9 / D5=50?5< 1, 19+.

T45<5 -as a <5:u5s/ 6 /45 a
 745/45< < 6/ /45 <5la/6s4 /4us =<5a/5d s 65  v56d< a6d v56d55 =6/56=y. HELD:

T45 d=ul/y 6 ds/6>us46> ?5/-556 /45 =6/56=y / s5ll 4as l5d / /45 5s/a?ls4056/  <55056/ / /<55d <=5, a6d 6/ 05<5ly  as a6 a>56/ -4 0us/ a==u6/ < /45 <=55ds  a <5sal5, /45 /56=y / s5ll s /45 d5lv556/, 6/ as 4s <54/ / =6/<l sal5s,  /45 <=5, a6d /5<0s, demand and recei"e the proceeds less the agent‘s commission upon sales made.

SC /456 56=y. Na/6al I6/5<6al R5v56u5 Cd5 d565d =005<=al ?<@5< as all 5 a?u/ sal5s < u<=4as5  05<=4a6ds5 < /45< 5 <s5d ?uy55/45< a6d als 6=lud5s =00ss6 05<=4a6/s su=4 as K5< 6 /4s =as5. T45 05<5 ds=la05< 6 a =6/ds < <5sal5  /45 >ds =6s>65d s 5
+

LLB 2A 

BA*TISTA, RITC!ELL F . 2+. INC!A*STI AND CO. (S. ELLIS CRO"7ELL G.R. N. L+8' 2 )4l '+

O=/?5< 1, 1911

FACTS:

I6=4aus/ s 56>a>5d 6 /45 ?us65ss  ?uy6> a6d s5ll6> a/ -4l5sal5 450. I/ s =us/0a 450 s d5s>6a/5d a06> 05<=4a6/s b1 the !ord #prensa=e+.

I6 all sal5s  450 ?y /45 la6/ <0, /45 <=5 s :u/5d / /45 ?uy5< a/ s 0u=4 5< =ul, 6 056/6 ?56> 0ad5  ?al6> ?u/ -/4 /45 /a=/ u6d5, u6l5ss /45<-s5 5<5ssly a><55d, /4a/ /45 450 -ll ?5 d5lv5<5d 6 ?al5s a6d /4a/, a== / /45 =us/0 <5val6> a06> 450 05<=4a6/s a6d d5al55, s / ?5 0ad5 a>a6s/ /45 ?uy5r under the denomination of #prensa=e+. his charge is made in the same 0a665< 6 all =as5s, 5v56 -456 /45 5 -as 5<<05d ?y /45 la6/ < ?y /s <6=al l6> ?5<5 /45 =6/ <=5 5<5ssly a><55d u6 < all 450 sld ?y /45 la6/ <0, ?u/ 4as 6/, u6/l =05ll5d / d s, ad /45 sad /a u6 su0s <5=5v5d <0 /45 u<=4as5<  su=4 450 under the denomination of #prensa=e+.

Su?s5:u56/ly, /45 d556da6/ a=/6> 6 4s =al =aa=/y as Cll5=/<  I6/5<6al R5v56u5  /45 )4l65 Isla6ds, 0ad5 d50a6d 6 -</6> u6 la6/ <0 < /45 ay056/ as /a 6 su0s  065y =ll5=/5d <0 u<=4as5
T45 la6/ <0 ad / /45 d556da6/ u6d5< </5s/ /4a/ /45 /a < /45 =ll5=/5d 065y u6d5< /45 d5606a/6 of #prensa=e+ is illegal upon the ground that said charge does 6/ =6s//u/5 a a <=5  /45 450, ?u/ s a =4a<>5 0ad5 < /45 s5 /45 450. I/ s /45 =6/56/6  /45 d556da6/ /4a/ /45 sad =4a<>5 0ad5 u6d5< /45 d5606a/6 of #prensa=e+ is in truth and in fact a part of the gross "alue of the hemp sold and of its actual

s5ll6> <=5. ISSUE:

 745/45< < 6/ /45 ?al5d 450 =6s//u/5 a =6/
HELD:

T45 ds/6=/6 ?5/-556 a =6/ / / a=:u<5 /, < a /46> -4=4 -uld 4av5 5s/5d a6d ?556 /45 su?j5=/  sal5 / s05 /45< 5v56. I/ s =l5a< /4a/ 6 /45 =as5 a/ ?a< /45 450 -as 6 5s/56=5 6 ?al5d <0 ?5<5 /45 a><55056/s   sal5 -5<5 0ad5, <, a/ l5as/, -uld 4av5 ?556 6 5s/56=5 5v56  665  /45 6dvdual sal5s 

LLB 2A 

45<5 6 :u5s/6 4ad ?556 =6su00a/5d. I/ -uld 4av5 ?556 ?al5d, 65v5 / /45 a><55d s/a/5056/  a=/s, / s =us/0a, a6d  -4=4 a/ /45 /05 a<5 6/ 0ad5 < 6s45d, / s 5ss56/ally a =6/<55056/. 745<5 la?< s 50ly5d 6 /45 0a/5<als  /45 s5ll5< 45 =a66/ 0a6/a6 a6 a=/6 < -<@ a6d la?<. I /45 a5 < 0d=a/6  / s 0ad5 a/ /45 d556da6/s <5:u5s/, / s a =6/4 / 0ay ?5 56/<5ly 0ad5 a/5<, a6d 6 =6s5:u56=5 , /45 d556da6/s 565ds / -4=4 /45 s/a/u/5  ds a<5 / ?5 0a6ua=/u<5d 5s5=ally < /45 u<=4as5< a6d u6 4s s5=al 565 -as 5<<05d < /45 >565 d65 ?y la6/ -4=4 -as a <5sul/  a6y 5=ula< -   /45 a565


LLB 2A 

2. "A$ARABAS, ET. AL. (S. LEONARDO G.R. N. ''8 11 )4l 22

S5/50?5< 12, 198

FACTS:

T45 la6/ 4ad <56d5<5d s5v5<65ss / a6 6a6/ dau>4/5<   /45 d556da6/ ?y v<55056/ 56/5<5d 6/ -/4 /45 6- d5=5as5d a<56/s  /45 d556da6/, -4, / us5 /45 la6>ua>5  /45 =0la6/, J <0s5d / l?5 /45 0a6/56a6=5  45 all /45 /05 /4a/ /45 s5v5<65ss.J I/ s 0a6/a65d 6 /45 d50u<<5< /4a/ /45 ?l>a/6 =6/a/6 4as ?556 5/6>us45d 6 a=/ a6d 6 la-, a6d /45 la6/ =a66/ /45<5<5, ?<6> su/ < =0la6=5 45<5-/4. T45 d50u<<5< -as v5<<u6d /4a/ a<5sad a><55056/ =6s//u/5d a =6/4 /45 <=5 -as / ?5 05asu<5d  ?y /45 =s/  /45 0a6/56a6=5  /45 la6/. T4s 4as ?556 ass>65d as 5<<< ?y /45 a5lla6/ 6 4s ?<5. ISSUE:

 745/45< < 6/ a =6/4 6 s5=5d < 5d <=5 -as s/ula/5d HELD:

 #5s. I/ s 6/ 65=5ssa /45 =6/ a /4a/ 6 /s /u<6 5s /45 <=5, 6as0u=4 as /s =s/ d5/5<065s /45 <=5 a== / /45 a><55056/  /45 a4/ ?5 a :u5s/6 as / /45 a=/ual =s/  /45 la6/Hs 0a6/56a6=5, ?u/ /4s s a 0a//5<  a=/ -4=4 6 su=4 a =as5 -uld 4av5 / ?5 <v56. B5 / as / 0ay, -4a/5v5< 0>4/ ?5 /45 =s/  sad su?ss/56=5, / -uld =6s//u/5 /45 <=5 < /45 s5 d5s>6a/5d ?y /45 aula/6> /45 a0u6/ /45<5. T45<5<5, /45 a5lla6/s all5>a/6 s u6u6d5d, a6d /45  /45 d50u<<5< 0us/ ?5 a<05d.

8

LLB 2A 

2. "ITS*I B*SSAN KAIS!A (S. T!E "ANILA E. R. AND L. CO. G.R. N. L1+ 9 )4l 2'

F5?
FACTS:

)<< / D5=50?5< 2, 191', /45 la6/ =<5 :ua6//5s  =al / /45 d556da6/, /45 "a6la El5=/<= Ral<ad a6d L>4/ C0a6y. D5lv5<5s u6d5< /4s =6/ <0 $aa6. T45 ?as= <=5 5d 6 /45 =6/ /6, ?u/ / -as s/ula/5d /4a/ /45 <=5 -as su?j5=/ / 0d=a/6 J6 <sla/u<5, ?y A=/ N. 2'2, ass5d D5=50?5< 2, 191', a6d 0s5d a s5== /a  65 s5 5< 05/<= /6 6 =al. S4 /45 06/4s <0 "a<=4 / O=/?5<, 6=lusv5,  /45 y5a< 191+, /45 la6/ =0a6y ?<u>4/ / "a6la <0 $aa6 la<>5 :ua6//5s  =al a0u6/6> 6 all / 11,8'.+ 05/<= /6s < d5lv54 /45 Bu<5au  Cus/0s, a/ /45 ><5>a/5 su0  )11,8'.+. T45 la6/ /456 d50a6d5d <50?u /s =la0 u6 /45 <vs6 <0 A=/ N. 2''+. T45 d556da6/ <5us5d / a==5d5 / /4s d50a6d, a6d /45 <5s56/ a=/6 -as 6s//u/5d ?y /45 la6/ / <5=v5< /45 a0u6/ s ad u/ ?y /. F<0 jud>056/ 56/5<5d 6 av<  /45 la6/ /45 d556da6/ 4as a5al5d. ISSUE:

 745/45< < 6/ /45 a<55d as / a 5d <=5 -456 a =6/
 #5s. T45 s/ula/6 05a6s /4a/ /45 <=5 =uld ?5 0ad5 =5 /6. T4s <vs6 4as 5=lusv5 <55<56=5 / /45 :ual/y   /45 =al d5lv5<5d, a6d 4as 6 /45< u<s5 /4a6 / suly a 05a6s  as=5 /45 valu5   /45 =al ?y d5/5<066> /s u/l/y =0?us/6.

9

LLB 2A 

28. E. C. "CC*LLO*G! (S. R. AENLLE & CO. G.R. N. 1  )4l 28+

F5?
FACTS:

T45 la6/ a6d d556da6/ 56/5<5d 6/ a6 a><55056/ Au>us/ 2, 191, < /45 u<=4as5  ?y /45 la6/ a6d sal5 ?y /45 d556da6/  =5a<5//5 a=/ /45 /s/5<5d, /45 s/=@  /?a== 6 l5a a6d 0a6ua=/u<5, 0a=465 5ls5 ?5l6>6> / /45 sad a=/ <0al d5lv5 /45 sa05 -ll als ?5 5d a/ 1 5< =56/ ?5l- /s 6v=5 <=5. T45 valu5  /45 /?a==, ?/4 6 l5a a6d 6 <=5ss  0a6ua=/u<5, ?5s, la?5ls, -aa<5//5s, a6d a5< 0u/45=5s < =>a<5//5s -ll ?5 5d a/ /45 6v=5 <=5. T45 valu5  /?a== 0ad5 u 6/ =>aa
 745/45< < 6/ u6d5< /45 /5<0s  /45 a><55056/, /45 <=5  /45 <5
 #5s. T45 a<55d u6. T45 a5ll55 a><55d / ?uy, a06> /45< /46>s, all  /45 l5a /?a== 6 /45 a=/ sld. T45 <=5 < 5a=4 a<55d / ay /45<5< /45 a0u6/ 6a05d 6 /45 6v=5s /456 6 5s/56=5. T45 <=5 =uld ?5 0ad5 =5us/ 2 /45 =6/6> / /45 a=/a/6 -as a?slu/5 a6d dd 6/ d556d a/ all u6 /45 :ual/y  /45 /?a== < /s valu5. T45 a5ll55 dd 6/, 6 /4s =6/4/ / <5j5=/ /45 /?a==  / -5<5 6/  a s5== =<. !5 dd 6/ ?uy /?a==  a a4/ all /45 /?a== -4=4 /45 a5lla6/ -65d a6d a><55d / ay < / -4a/ /45 d556da6/ 4ad ad < /.

'

LLB 2A 

29. %ACARIAS ROBLES (S. LI%ARRAGA !ER"ANOS G.R. N. L21 + )4l 8

$uly 1, 192

FACTS:

I/ a5a5d <>6ally / /45 sus5s %a=a<as R?l5s a6d A6as/a=a d5 la Ra0a, a<56/s  /45 <5s56/ la6/, %a=a<as R?l5s. *6 /45 d5a/4  %a=a<as R?l5s S<., 4s -d- A6as/a=a d5 la Ra0a -as a6/5d ad06s/666> a/ /45 56d  /45 0ll6> s5as6 6 "ay, 191+, a6d /5<06a/6> a/ /45 56d  /45 0ll6> s5as6 6 "ay, 192. I/ -as s/ula/5d /4a/ a6y 5<0a656/ 0<v5056/s 65=5ssa4/ / 6d506/y a/ /45 56d  /45 /5<0. As /45 la=5 -as 6 a 6> /45 <5a !5<0a6s -as -5ll a-a<5  /45 6a/u<5 a6d 5/56/  /45s5 0<v5056/s.  7456 /45 la6/Hs 0/45< d5d, d556da6/ =a05 <-a<55d / ay 40 /45 valu5  all ?5//5<056/s /4a/ 45 4ad 0ad5 6 /45 la6d a6d u5d / 40 5<55d / /4s. O6 /45 56su6> 6s/4/s as l5ss55, 5=5/ 6 6> /45 da/5 -456 /45 l5as5 s4uld 56d 6< s a6y/46> sad =6=5<66> /45 0<v5056/s -4=4 /45 la6/ 4ad la=5d. A/ /45 sa05 /05 /45 <0s5  /45 d556da6/ / =056sa/5 < 40 < /45 0<v5056/s -as -a6/6>. A==ly, /45 <5<5s56/a/v5  /45 d556da6/ 5la65d /4a/ /4s -as u665=5ssa ?5/-556 /45 a<55056/ -/4 <5s5=/ / =056sa/6> /45 la6/ < 0<v5056/s a6d /45< /46>s -as 65v5< 6 a=/ 0ad5. ISSUE:

 745/45< < 6/ /45 s/ula/6 < a<55056/ as / /45 <=5 -as a sus56sv5 =6d/6 < /45 56<=5a?l/y  /45 =6/
N. I6 /4s =665=/6 / s =la05d /4a/ /45 /  /45 <v56 v5<55056/ s /4a/, 6 =as5 /45 a<55 u6 /45 <=5, a/5< a6 a<55056/ -uld 6/ ?5 ?6d6> 6 /45< -<55056/ as / /45 <=5 -as a sus56sv5 =6d/6 6 /45 =6/<55056/ 6 /45 <=5 5=5/ as / /45 =aa/6  /45 d556da6/ 4as 65v5< ?5=05 55=/v5. 75 a<5  /45 66 /4a/ /45 s/ula/6 -/4 <5s5=/ / /45 aa/5d /s5l / <0/5 '1

LLB 2A 

/45 ad a/4. As /45 d556da6/ as =6/5 6/5d u/, /4a/ a6 u6jus/ 56<=4056/  /45 d556da6/ -uld <5sul/ <0 all-6> / / a<<a/5 /45 0va?l5s -/4u/ =056sa/6> /45 la6/ /45<5.

'2

LLB 2A 

BESARES, AL#ANNA "ARI% C. . ASKA# (S. COSALAN GR N. 219' S5/50?5< 1+, 192' ' )4l. 19 FACTS:

 As@ay, a6 ll/5<</5 ?5/-556  a6d 8 y5a5, <5sd6> 6 /45 0u6=al ds/<=/  Tu?lay, )<v6=5  B56>u5/, -4 a/ va<us /05s 4as ?556 /45 -65<  066> <55  As@ay, a6d 0u6=al <5sd56/  Tu?lay, -4 l@5-s5 4as ?556 6/5<5s/5d al6> -/4 4s u6=l5 6 066> 56/5<<s5s.  A?u/ 19, As@ay ?/a65d //l5 / /45 )5/ K5l "65u5/. O6 Nv50?5< 2, 191',  -5 a<5 / a==5/ d556da6/s E4?/ 1, As@ay sld /4s =la0 / Csala6. N65 y5au5/ / 4av5 /45 sal5  /45 )5/ K5l "655s <0 /45 d556da6/ 6 /45 a0u6/  )1,+. Fll-6> /45 <5s56/a/6  va<us l5ad6>s 6=lud6> /45 a6s-5<  /45 d556da6/, a6d ll-6> /<al  ?5<5 $ud>5  F056/ -as <56d5<5d ds0ss6> /45 =0la6/ a6d a?slv6> /45 d556da6/ <0 /45 sa05, -/4 =s/s a>a6s/ /45 la6/. O6 ?56> 6<05d  /45  jud>056/  /45 /<al =u<u6ds T45 
 745/45< < 6/ /45 d55d  sal5 =a6 ?5 =a6=5ll5d ?as5d 6 /45 la6/Hs =la0

HELD:

N, 6 u< jud>056/ 45 4as al5d / 5s/a?ls4 4s =la0. F5d a6d <v5d. O65 a=/ 5s/s 6 la6/s av<, a6d /4s s /45 a>5 a6d >6<5a/5< 6/5ll>56=5. A6/45< a=/ s /45 6ad5:ua=y  /45 =6sd5 / /45 =6v5ya6=5, =6ss/5d  )1 a6d /45< valua?l5 =6sd5 / /45 >5s/s 65 v5< /45 /45<. Bu/ /45 a=/ /4a/ /45 ?a<>a6 -as a 4a056/ =6=5<66> /45 /<u6d < /45 =a6=5lla/6  a =6/
'

LLB 2A 

1. 7ARNER, BARNES & CO., LI"ITED (S. SANTOS G.R. N. L'92 Nv50?5< 1, 199 1' )4l. '' FACTS:

)la6/ ?<u>4/ a6 a=/6 < /45 u<s5  <5=ls6> a 0a>5. La/5< /45 =aus5 -as  ?<u>4/ 6 < /<al, a6d a/5< 45a<6> /45 5vd56=5 addu=5d du<6> /45 /<al, /45 l-5< =u056/ 6 av<  /45 la6/. T45 jud>056/  /45 l-5< =u056/ /4a/ a6 55=u/6 0>4/ ssu5 a>a6s/ /45 <5056/ 6/ 4av6> ?556 ad, jud>5  sad =u /45 s45< / s5ll /45 <5a>5. T45 0a>5d <5<u6d /4a/ /45<5 -as a6/45< 5a6. I/ -ll ?5 6/=5d /4a/ /45 d556da6/ a5a<5d a6d ?j5=/5d / /45 =6<0a/6  /45 sal5 5l5v56 days a/5< /45 sal5 4ad  ?556 =6su00a/5d, a6d s a< as /45 <5= /45 56d56=y  /45 =aus5 6 /45 l-5< =u /45 ?j5=/6 0ad5 ?y /45 d556da6/, /45 l-5< =u
 745/45< < 6/ /45 ?j5=/6  /45 d556da6/ / /45 =6<0a/6  /45 sal5 =6s//u/5d a su=56/ =aus5 < <5us6> / =6<0 su=4 sal5. HELD:

T45 ?ass  /45 ?j5=/6  /45 d556da6/ 6 /45 l-5< =u056/ d5?/< u/  4s <5l>56/ d5lay 6 a6 a//50/ / </5=/ 4s <>4/s 6 /45 a056/ d5?/<. I6 /45 <5s56/ =as5 /45 d556da6/ 0ad5 6 a//50/ / d556d 4s <>4/s u6/l s05 days a/5< jud>056/, 55=u/6, a6d sal5. T45 Su<505 Cus -uld 6/ ?5 s5/ asd5 u6 /45 ><u6d /4a/ /45 s45< dd 6/ <5=5v5 as 0u=4 065y as 45 0>4/ 4av5 <5=5v5d, <vd6> all  /45 <=55d6>s -5<5 vald a6d <5>ula<, u6l5ss /45 sal5 -as 0ad5 < a su0 ><ssly  6ad5:ua/5 6 =0a<s6 -/4 /45 <5al valu5  /45 <5
''

LLB 2A 

2. )!ILI))INE NATIONAL BANK (S. GON%ALE%, Nv50?5< 2, 1921 '+ )4l. 9 FACTS:

Nv50?5< 2, 1921, )4l65 Na/6al Ba6@ =0056=5d a su/ a>a6s/ "a6u5l E<65s/ G6;al5s / <5=ls5 a <5al 0a>5 0ad5 / s5=u<5 a <0ssa6s/ /45 sa05 d556da6/, 6 -4=4 /45 <>6al -as <5<du=5d, / <5=ls5 a s5=6d 0a>5 < )1+, u6 /45 sa05 la6d d5s=<?5d 6 /45 <>6al =0la6/. T45 ?a6@ l5d < d5aul/ a6d /45 =ua>5s / sa/sy /45 a0u6/  /45 jud>056/. O6 Au>us/ 28, 1922, /45 //al  /45 jud>056/ 6 /45  /45 6/5<5s/, -as )1,1.+9, a6d 6 /45 s5=6d 0a>5, 6 /45 sa05 da/5, / -as )1,++. F5? /45 sal5.  A<l +, 192, /45 d556da6/ G6;al5s, /4<u>4 4s /456 a//<65y, l5d a 0/6 < <5=6sd5v6> /45 a<5sad d556da6/ a ><5a/5< 66> as 5<<< /4a/ J/45 /<al =u asd5, -/4u/ >d =aus5 4av6> ?556 s4-6, /45 <<  /45 jud=al sal5, a6d  /45 <5sal5  /45 la6d 6 :u5s/6. ISSUE:

 745/45< < 6/ /45 /<al =u asd5 /45 d5=s6.

HELD:

I/ -ll ?5 6/5d /4a/ 6 /45  /45 sal5, -as s5/ asd5 u6 /45 sl5 ><u6d  6ad5:ua=y  =6sd5<u6d s5=5d s J/4a/ <u6ds a<5 s5==ally s5/ 5d as / -4y /45 sal5 s4uld ?5 s5/ asd5, a6d /4a/ 6 /45 ?dy  /45 0/6, / s 6/ =la05d /4a/ /45 la6d -as sld < a6 6ad5:ua/5 =6sd5 0ad5 6< a6y 5vd56=5 <5s56/5d, /4a/, 6 /45 5v56/ /45 <5us/ 28, 1922, /45 a0u6/  /45 ?a6@s jud>056/ -as )1,1.+9. I/ als a5a45s/ ?dd5<. I6 /45< -<55d / /45 sal5  /45 <5
LLB 2A 

. T!E DIRECTOR OF LANDS (S. ABARCA  G.R. N. L8+81 1 )4l. 

D5=50?5< 18, 19'

Facts:

T45 l/ 6- 6 :u5s/6 -as /45 su?j5=/  l/>a/6 ?5/-556 Da/u Buala6 a6d 4s = =la0a6/s, 6 /45 65 4a6d, a6d C<a= L;ada, 6 /45 /45<. $ua6 A. Sa<56as a6d D06> Ba6;a -5<5 /45 a//<65ys < Da/u Buala6 a6d 4s ==la0a6/s 6 /4a/ su/, -45<56 a  jud>056/ -as <56d5<5d d5=la<6> Da/u Buala6 a6d 4s ==la0a6/s /45 -65a/6. Su?s5:u56/ly, a =6/<v5?s a6d /45< a//<65ys as / /45 a0u6/  55s du5 /45 la//5<, -45<5u6 /45 a//<65ys /@ ss5ss6  /45 <54/ ?y /45 Ba>?s a>a6s/ /45< <05< a//<65ys < /45 <5=v5056/ -as <56d5<5d  /45 a//<65ys / <5/u<6 /45 <5 /45 Ba>?s / ay /45< <05< a//<65ys /45 su0  ), as 55s. As a <5sul/  /4s jud>056/ Da/u Buala6 a6d 4s = =la0a6/s ad Sa<56as a6d Ba6;a /45 su0  )+,12.1. T45y als ad / /45 0u6=al /<5asu<5<  Dava 6 /45 6a05  Sa<56as a6d Ba6;a, < /a5s a6d 56al/5s du5 6 /45 <5?s assu05d /4a/, ?y /45s5 ay056/s -4=4 a0u6/5d 6 all / ),12, /45  jud>056/ <56d5<5d a>a6s/ /450 < ), />5/45< -/4 6/5<5s/s du5 /45<56, -as ully  sa/s5d. Cla06> /4a/ /45 su0 ad / /45 0u6=al /<5asu<5<  Dava s4uld 6/ ?5 =<5d/5d 6 /45 a0u6/  /45 jud>056/ ?/a65d ?y /450, Sa<56as a6d Ba6;a =aus5d /45 =l5<@  /45 =u056/. By <5as6  /45 -</  55=u/6 s ssu5d, /45 s45< l5v5d 6 /45 <5a6;a < /45 su0  )8.2+. *6 /45 alu<5  /45 Ba>?s / <5d550 /45 <56> /4a/ /45y -5<5 /45 a?slu/5 -65
 745/45< < 6/ /45 su0 ad ?y /45 Ba>?s / /45 0u6=al /<5asu<5< s4uld ?5 =<5d/5d. Held:

 #5s, / s4uld ?5 =<5d/5d. I6 a<65ss a6d 5:u/y, -4=4 a/5< all a<5 /45 /056/ ?/a65d ?y Sa<56as a6d Ba6;a 6 =vl =as5 N. . Su=4 /a5s a6d 56al/5s a==65d ?y Da/u Buala6 a6d 4s = =la0a6/s a>a6s/ /45 jud>056/ ?5l-, / /45 55=/ /4a/ /45 l-5< =u /45 <54/ / ?5 <5>s/5<5d / a l56 6 av<  Sa<56as a6d Ba6;a < )8.2+ -/4 6/5<5s/s, 0us/ ?5 sus/a65d.

'

LLB 2A 

'. DE LEON (S. SAL(ADOR  G.R. N. L81  SCRA +

D5=50?5< 28, 19

FACTS:

 A jud>056/ < )+,.a=/ual, 05s a6d a -</   55=u/6 -as ?/a65d ?y E6<:u5 d5 L56 a>a6s/ <va/5 <5s6d56/ Eus5? B5<6a?5 6 Cvl Cas5 N. C189  B5 F5<6a6d A. C45s/ ?dd5< < /45 //al su0  ),19'.. T45 s45< 55=u/5d /45 =<<5s6d6> =5s/5<5d 6 F5?s/5<  d55ds. O6 F5? <55<<5d / $ud>5 C v5< B65d / B5 S5 /45<56 d556da6/s, a us a>a6s/ /45 <5 a s45<Hs d55d  sal5 a/ /45 5<u6ds  la=45s a6d la=@  ju<sd=/6  $ud>5 Salvads 56d6> 6 /45 5 C
 745/45< < 6/ B5 Salvad< 4as 5=lusv5 ju<sd=/6 / s5/ asd5 < all5>5d <<5>ula</5s /45 55=u/6 sal5 0ad5 ?y $ud>5 C
I/ s a/56/ /4a/ su=4 5=lusv5 ju<sd=/6 -as v5s/5d 6 $ud>5 C a=:u<5d ju<sd=/6 v5< Cas5 N. C189 a6d <56d5<5d jud>056/ /4a/ 4ad ?5=05 6al a6d 55=u/056/, / /45 5=lus6  all /45< =056/ 4av6>  ?556 =a<<5d u/ ?y /45 s45< -/4 /45 l5vy a6d sal5  /45 jud>056/ d5?/056/ d5?/< =uld 6/ 6 /45 >us5  a 65- a6d s5a5 Salvads, / s5/ /450 asd5 a6d /   a 65- 55=u/6 sal5  6s/5ad  s55@6> su=4 <5l5 ?y <5< 0/6 a6d al=a/6 <0 $ud>5 Cs a6d /45 <5a v. d5l Rsa<,  /4s Cu056/s < d5=<55s  a =u -5< / >4/ ?y 6ju6=/6,J 6/6> u/ /4a/J /45 va<us ?056/s < d5=<55s ?y 6ju6=/6s -uld ?vusly l5ad / =6us6 a6d 0>4/ s5<usly  46d5< /45 ad06s/
'

LLB 2A 

BINANG, IBNO!A$AR L. +. BORRO"EO (S. BORRO"EO, ET AL. G.R. N. L18'98 +2 O. Ga;. 192

"a<=4 , 19

FACTS:

 (/ B<<05, a -d-5< a6d 5<0a656/ <5sd56/  /45 C/y  C5?u, d5d 6 "a<=4 1, 19+2, a/ /45 a>5  88 y5a 5/56sv5 <55 d=u056/ as /45 las/ -ll l5/ ?y sad d5=5as5d, d5vs6> all 4s <56a/6> $u6:u5s N. 91R. T45 d=u056/ -as da/5d "ay 1, 19', d5dly s>65d, a6d /4u0? 0a<@5d ?y sad d5=5as5d, 6 /45 <5s56=5  D<. C<65l G. Ga6d6=, Eus5? Ca?lu6a a6d Fl?5 -/65ss5s. O6 $u65 1', 19+2, /45 <?a/5 =u ><u6ds 1 /4a/ /45 <0al/5s <5:u<5d ?y la- 4ad 6/ ?556 =0l5d -/4 2 /4a/ /45 /5s/a/< -as 056/ally 6=aa?l5  0a@6> a -ll a/ /45 /05  /s 55=u/6  /4a/ /45 -ll -as <=u<5d ?y u6du5 a6d 0<5< 6lu56=5, 6 /45 a6a/u<5  /45 /5s/a/< -as <=u<5d ?y  65d / ?5 4s -ll a/ /45 /05 45 a5d 4s s>6a/u<5 /45<5/. O6 "ay 28, 19, /45 Cu /45 <?a/5  /45 -ll a6d d5=la<6> /s5l -/4u/ ju<sd=/6 / ass u6 /45 :u5s/6  -65 <?a/5, a6d /45 s/
 745/45< < 6/ /45 5vd56=5  <5=
I/ 0us/ ?5 =6=5d5d /4a/ 6 /4s ju<sd=/6, /45 su?s=<?6> -/65ss5s / a =6/5s/5d -ll a<5 <5>a s/a6d6> 6 /4s ju<sd=/6 / a==<5a/ -5>4/ / /45 6d6>s  a=/ 0ad5 ?y /45 /<al =uv56 u6du5 -5>4/ /, < '8

LLB 2A 

0s=6s/ /4a/ /45 /<al jud>5 4ad ull  a6d -as =6s5:u56/ly 6 a ?5//5< s/6 /4a6 /45 <5v5-6> =u5 -4 5665d /45 a5al5d d5=s6 -as 6/ /45 sa05 jud>5 ?5<5 -40 /45 5vd56=5  /45 a6> <0 /45 =a<5ully -<//56 d5=s6 u6d5< <5v5-, / -as 6ly a/5< a /4<u>4 s/udy  /45 <5= -/65ss5s d 6/ a5a< / ?5 -4lly ds6/5<5s/5d 5 -/65ss5s -as >v56 a<u6d 5>4/  y5a5d 55=u/6  /45 :u5s/65d -ll, s/ll -5 ?5l5v5 /4a/ /45 /65d ?y /45 /5s/a/< a6d ?y /450. S/5< s/ll -uld / ?5 < /450 / say s05/46> 6 56 =6/
'9

LLB 2A 

. CR*%ADO (S. B*STOS AND ESCALLER  G.R. N. L12'' ' )!IL 1

F5?
FACTS:

 A>a/ C 6 )a0a6>a, 45 4ad a j? 6 =u4 / sua ?u/ 45 -as u6a?l5 / >v5 /45 <5:u<5d ?6d, a6 6ds56sa?l5 =6d/6 < 4s a6/056/. S6=5 C>5d /45 la//5< / s0ula/5 a 0a>5 d55d  a =5a>5 -as a <6/ a6d  a <5/56d5d =6/ u6 ?/4 =6/ a<55d u6 /45 /46> sld. Bu/ / s als u6d56a?l5 /4a/ /45 sad =6/5 /45 la6d as a s5=u</y < /45 a/4ul ds=4a<>5  /45 du/5s  4s =5. Sa6/a> C4/ a6 a=/6 < <5=v54/ /4/ a<s6> <0 /45 sad s0ula/5d d55d  sal5  /45 la6d 6 :u5s/6. ISSUE:

 745/45< < 6/ /45 sad d55d  sal5 -as s0ula/5d, 6/ -/4 /45 6/56/ / d5 / a5a< /4a/ A>a/ C4/s  / C / /45 sad la6d 6 =6/5s/ s vald a6d -/4u/ d55=/ HELD:

*6d5< /45 la-, /45 =6/ a6d s =6su00a/5d ?y /45 <5=<=al d5lv5 sld ?56> =6v5y5d / /45 v56d55, <0 -4=4 0056/ /45 <>4/  a=/6 d5<v5d <0 /4s <>4/ 0ay ?5 55<=s5d. T45 <5= /45 =6/4/ / /45 a/6 / d5lv5< / a<s5. !-5v5<, 45 s4all 6/ a=:u<5 a <54/ /45<5/ u6/l / 4as ?556 d5lv5<5d / 40 B5sd5s /45 alu<5 / ay /45 u<=4as5 <=5, 65/45< /45 v56d55 6< 4s 45, =6/6u5d / ss5ss /45 sad la6d sus5dly sld / A>a/ C ?5<5 /45 sal5  S5/50?5< 18+ / S5/50?5< 1891, /45 da/5  =0la6/ ?y Sa6/a> C
+

LLB 2A 

C6s5:u56/ly, a/ /45 d5a/4  A>a/, 45 =uld 6/ 4av5 / as 4s su==5ss< a6y ><5a/5< <>4/ /4a6 a 54/ / 5a=/ ulll056/  a =6/s/5< /. T4s ulll056/  a <>4/ as al<5ady <5s=<?5d s6=5, u6d5< /45 la-, <5s=</6 /-a / / =u
+1

LLB 2A 

. GARDNER (S. CO*RT OF A))EALS G.R. N. L+99+2 11 SCRA +8+

 Au>us/ 1, 198'

FACTS:

T45 =as5 6vlv5s s5v5<55056/ -/4 R5s6d56/ sus5s, /45 Sa6/sHs / su?dvd5 2 a<=5ls  la6d a6d 55=u/5d a6 a?slu/5 d55d  sal5 6 av<  /45 la//5<. T45 <5al /a>5 v5< /45 l/. T456 (5<<ya 55=u/5d a d55d  /4u/ /45 su==5ssv5 /s/5<5d < /45 </5=/6  /45 Sa6/sHs =6sd5<6> /45 065ys /4a/ /45 la//5<  -uld ?5 adva6=6>. !56=5, /45 Ga5s a>a6s/ /45 + /a>55s. T45 RTC /45 /
 745/45< < 6/ /45 ad0ss6s 0ad5 ?y Sa6/s 6 /45 l5ad6>s a<5 ad0ss?l5

HELD:

NO, /45 /5s/06y  A<s/ Sa6/s s a/ va<a6=5 -/4 /45 all5>a/6s 6 4s A6s-5<. As a >5655d 6 a a a<5 d5505d ad0ss6s  /4a/ a u6 /, ?u/ /4s s 6/ a6 a?slu/5 a6d 6l5?l5 / 55=/s / <v5, ?u/ / s 6/ 5vd56=5. 1. Sa6/s 40s5l, 6 56 Cua6s/ 4s -6 6/5<5s/, 4s /5s/06y s d5s5  -5>4/ a6d =<5d56=5. B/4 /45 T<al Cus /45<56. Sa6/s l@5-s5 ad0//5d a>a6s/ 4s -6 6/5<5s/ /4a/ /45 5//65<55056/ a6d /45 Sul5056/al A><55056/ 5<5ss /4a/ /45 /<55056/ ?5/-556 /45 a
LLB 2A 

BONGCO, ROCK# RE ). '. LEO)OLDO DE BELEN (S. COLLECTOR OF C*STO"S ' )4l. 2'1 Facts:

T0/5 T56; -as a duly a==<5d/5d =us/0s ?<@5< 6 /45 C/y  "a6la, a6d 6 =665=/6 -/4 4s ?us65ss as su=4 ?<@5<, 5 05<=4a6ds5 a<<v6> a/ /45 655s, 4s =us/054u/ /45 =/y. O6 < a?u/ A<l , 1921, T56; <=u<5d a 5<0/ <0 /45 I6sula< Cll5=/< < /45 -/4d < sad lu< -as 6/ <du=5d ?y T56; a/ /45 /05 45 <=u<5d /45 d5lv55/ ss5ss6  /45 lu< 45 ?l>a/5d 40s5l, u6 4s ?6d as a =us/0s ?<@5<, / 4av5 /45 ?ll  lad6>  6 du5 /05. Sad ?ll  lad6>, 4-5v5<, -as 65v5< <du=5d ?y T56; < 4s <6=al, C4ua S=, -/4 /45 <5sul/ /4a/ /45 =ll5=/<  =us/0s =aus5d a6 a=/6  <5l5v6 /  ?5 ?5>u6 6 /45 6a05  /45 Gv5<6056/ 6 $u65 1, 1921, / <5=v5< /45 lu< -4=4 4ad ?556 d5lv5<5d as a<5sad, < 6 =as5 /45 lu< /s5l =uld 6/ ?5 s5=u<5d, / <5=v5< jud>056/ < /45 valu5 /45<5 6 /45 a0u6/  )',81.2. a6 a//a=4056/ -as su5d u/ ?y /45 la6/  a>a6s/ /45 <5<u6d /4a/ 45 -as a?u/  6 a d=u056/  / >6<5d /45 =la0  B5l56 / /45 -65a6s/ /45 Cll5=/<  Cus/0s a6d /45 s45< < /45 <5=v5 /45 =aus5 /45 /<al jud>5 u6d /4a/ /45 d=u056/ <55<<5d / E4?/ A -as 5vd56/ly a =//us / /45 /
 745/45< < 6/ /4a/ /45 d=u056/ <55<<5d / E4?/ A -as 5vd56/ly a =//us / /45 /
 #5s. I/ s su=56/ / <55< / /45 /5s/06y  65 G5 / /45 =as5 N. 211, 6s//u/5d ?y  /45 Gv5<6056/ a6d /45 Cll5=/<  Cus/0s a>a6s/ C4ua S= a6d T0/5 T56;. T4s  -/65ss s/a/5s /4a/ 6 a =6v5 v5< T56;, 5s/a?ls4 6 u< +

LLB 2A 

66 a s/<6> <5su0/6 /4a/ /45 / /45 /al <=5ss d<5=/5d a>a6s/ T56;. N< s /4s <5su0/6 v5<=05 ?y /45 d=u056/s C / C, u< / ?5 <5=5/s < 065y adva6=5d ?y B5l56 / T56; du<6> /45 y5a5 -as <>4/ 6 56/5 /45 sus=6 /4a/ /45s5 <5=5/s 0>4/ 4av5 ?556 0a6ua=/u<5d / 055/ /45 s/ua/6, -/4u/ <5<5s56/6> ?6a d5 d5?/s  T56; / B5l56. A/ a6y
+'

LLB 2A 

'1. FRANCISCO IR*RETA GO#ENA (S. ILDEFONSO TA"B*NTING G.R. N. L 9+ 1 )4l. '9

Nv50?5< 18, 192

Facts:

T45 la6/s <6=al -65d a / /45<56 @6-6 as N. 2 Call5 Sa6 $s5, E<0/a, "a6la. T4s / /45 la6/, s/a/5d / /45 d556da6/ /4a/ /4s l/ -as < sal5 a6d, 6 6<0a/6 <5=5v5d <0 /45 la6/, /4a/ / 05asu<5d 2 05/5/a/6s ?5/-556 /450s5lv5s =6=5<66> /45 sal5. O6 "a<=4 12, 191, /45 d556da6/ s>65d /45 ll-6> d=u056/ O6 /4s da/5 I 4av5 ?u>4/ <0 D6 F65d. "a6la, "a<=4 12, 191. S>65d Ta0?u6/6>. T45 la6/ s>65d a s0la< d=u056/. 74a/ /45 65>/a/6s ?5/-556 /45 a66>  /45 /45s5 d=u056/s d5s 6/ a5a<. T45<5 s 6 5vd56=5 -4a/5v5< 6 /45 <5=<55056/ 6 <5>a65d < /45 55=u/6  /45 6s/ 6 /45 =5  /45 6/a /45 <=5, ,2, a6d /456 <5us5d / s>6 / ?5=aus5 /45 l/ dd 6/ =6/a6 /45 a<5a -4=4 /45 la6/, /4<u>4 /45 ?<@5<, 4ad <5<5s56/5d /4a/ / =6/a65d. !5 5<5ss5d 4s -ll6>65ss / s>6 /  a <4/ u6d5< a as /45 ?j5=/  /45 =6/ 0ad5 su?j5=/ / a6y =6d/6 -4a/5v5<. Issue:

 745/45< < 6/ /45<5 -as a 5<5=/ =6/
Held:

Evd56/ly 6/46> s la=@6> < /45 5s/56=5  a 5<5=/ =6/ a, a6d /45 /45< / ay /45<5<5 a <=5 =5 <5<5s56/6> /. A 6 ?/4  /450,   /45y 4av5 a><55d u6 /45 /46> -4=4 s /45 ?j5=/  /45 =6/ / a a4/ / <5=<=ally d50a6d /45 5<<0a6=5  /45 =6/4/ -uld a== a -4=4 4as 6 5s/56=5 =a6 <du=5 6 55=/. B5=aus5 / s 05<5ly a <va/5 d=u056/ -4=4 =6/50la/5s /45 su?s5:u56/ 55=u/6  a u?l= 6s/
LLB 2A 

6/ ll- /4a/ / s 6/ 56<=5a?l5 as / 6- s/a6ds. JC6/a/, a <=5 =5  /45 06ds -/4 <5s5=/ / /45 ?j5=/  /45 =6/a/
+

LLB 2A 

'2. FILI)INAS COLLEGES, INC. (S. TI"BANG, ET. AL. G.R. N. L12812 +2 OFF. GA%. 2'

S5/50?5< 29, 19+9

Facts:

T4s s a6 a5al /a@56 <0 a6  /45 S45<s =5 a s=4l ?uld6> sld a/ u?l= au=/6 6ull a6d vd u6l5ss -/46 1+ days <0 6/=5  sad  a6d "a<=5l6 T0?a6>, s4all ay /, a5ll55 "a<a G54 /45 S45<  "a6la /45 su0  )+,+. /4a/ /45 sus5s T0?a6> 4ad ?d < /45 ?uld6> a/ /45 S45<s sal5 ? d5=la<6> /45 /45< a5ll55 Fl6as Cll5>5s, I6=. -65<  2',+,28+,9' u6dvd5d 6/5<5s/ 6 L/ N. 2a =v5<5d ?y =5 sld 6 /45 au=/6 sal5 s s/ua/5d a6d =  /45 sal5 6 u?l= au=/6  /45 sad u6dvd5d 6/5<5s/  /45 Fl6as Cll5>5s, I6=., 6 l/ N. 2a a<5056/65d / sa/sy /45 u6ad 056/ 6 av<  a5ll55 Blas a6d a>a6s/ Fl6as Cll5>5s, I6=. 6 /45 a0u6/  )8,2. 06us /45 su0  )+,+. 056/65d 6 a a?v5. T45 056/  /45 Cu, /45 Fl6as Cll5>5s, I6=., a6d "a<a G55s, I6=. 4av6> al5d / ay < d5s/ /45 su0  )2,8+9.' -/46 /45 /05 <5s=<?5d, /45 sus5s T0?a6>, 6 =0la6=5  -/4 /45 jud>056/  /45 Cu ?u/ / =05l Fl6as Cll5>5s, I6=., < /45 ay056/  /45 su0  )2,8+9,'. T45 0/6 4av6> ?556 >056/  )8,2. <5<5s56/6> /45 u6ad 5s, I6=. Ov5< /45 ?j5=/  /45 T0?a6>s, /45 =u -</  55=u/6 -as ssu5d 6 $a6ua  /45 0/6 < 55=u/6, Blas /4<u>4 =u6s5l, s56/ a l5//5< / /45 S45<   "a6la advs6> 40  45< <55<56/al =la0 < l56 6 /45 4us5 / sa/sy /45 u6ad ?ala6=5  /45 u<=4as5 <=5 /45<5 u6d5< A ?556 0ad5 6 /45 4us5 6 v 6 u?l= au=/6 6 av<  /45 sus5s T0?a6>, as /45 4>45s/ ?dd55s, I6=. -5<5 als au=/65d < )2'+. 6 av<  /45 sus5s T0?a6>. As a <5sul/  /45s5 a=/ua/6, /4<55 0/6 -5<5 su?s5:u56/ly l5d ?5<5 /45 l-5< =u sus5s <5s56/5d /45< s/6 / 5a=4 a6d all  /45s5 0/6s. Issue:

 745/45< < 6/ /45 a5lla6/s as -65<  /45 la6d 0ay s55@ <5=v5
N. T45 Cu5056/, 65v5056/ =<5d/, /45 55=u/6 =<5d/<, as su==5ssul ?dd5<, 0us/ ay 6 =as4 /45 a0u6/  4s ?d as a =6d/6 <5=5d56/ / /45 ssua6=5 / 40  /45 =55d /4a/ a5ll55 +

LLB 2A 

Blas s 56//l5d / /45 ay056/  /45 u6ad ?ala6=5  /45 u<=4as5 <=5  /45 s=4l  ?uld6>. Blas s a=/ually a l56 6 /45 s=4l ?uld6> a<5 =6=5<65d. T45  /45 T0?a6> sus5s, as su==5ssul ?dd5 a5ll55 Fl6as Cll5>5s, I6=. a, /4s Cu sus5s / ay / /45 S45< < / "a6la G5056/, a6  sus5s 6/ 550/ <0 55=u/6 < /45 sa/sa=/6  /45 sad a0u6/.

+8

LLB 2A 

'. BARRETTO (S. SANTA "ARINA  G.R. N. 828 2 )4l. 2 Facts:

La I6sula< =>a< a6d =>a<5//5 a=/ )2,, < '1  /45 -4l5. O6 "a<=4 1', 191, /45 la6/s a//<65ys -</5 /45 d556da6/s l=al <5<5s56/a/v5 a l5//5< 5<6> / s5ll / /45 d556da6/ la6/s a5d / 4av5 <5=5v5d <0 /45 d556da6/ /4a/ a0u6/. Su?s5:u56/ly / /45 55=u/6  E4?/ $, d50a6d -as 0ad5 ?y /45 la6/ u6 /45 d556da6/ < 4s s4a<5  /45 </s <0 $u65 , 199, / Nv50?5< 22, 191. T4s d50a6d -as <5us5d a6d /45<5u6 /4s a=/6 -as 6s//u/5d / <5=v5< sad </s. T45 la6/ ad0/s /4a/  /45 a><55056/  "ay , 191, -as a 5<5=/5d sal5 45 =a66/ <5=v5< a6y </s a/5< /4a/ da/5 -4l5 6 /45 /45< 4a6d d556da6/ =6=5d5s /4a/  /45 sad a><55056/ -as 6ly a <0s5 / s5ll 6 /45 u/u<5 /, s/a6d6> al65, -uld 6/ <5v56/ <5=v5
 745/45< /45 a><55056/ 55=u/5d ?y ?/4 a
 #5s. A 6 ?/4  /450,  /45y 4av5 a><55d u6 /45 /46> -4=4 s /45 ?j5=/  /45 =6/a als s5==, < /4a/ /45 d5/5<06a/6  /45 sa05 ?5 l5/ / /45 jud>056/  a s5=5d 5<55056/ u6 /45 /46> -4=4 s /45 ?j5=/  /45 =6/ a<55 u6 /45 <=5. T45 ?j5=/  /45 =6/4/, //l5, a6d 6/5<5s/ 6 La I6sula<. T4s -4l5 -as '1  /45 56/<5 65/ valu5  /45 ?us65ss. T45 a<55d /4a/ /45 <=5 s4uld ?5 '1  /45 //al 65/ valu5. T45 6>  su=4 65/ valu5 -as u6<5s5056/  /45 a a6d /45 <=5 /45 06ds  /45 =6/ a /45<5/ -5<5 s5//l5d. N/46> -as l5/ u66s45d 6 s a< as /45 =6/ a
+9

LLB 2A 

CA)OT*LAN, $ENNEL $IE%DE T. '+. OBANA (S. CO*RT OF A))EALS G.R.NO. L2'9 1+ SCRA ++

"a<=4 29, 198+

Facts:

)5//65< ?u>4/ 1 =ava6s  <=5 <0 a C465s5 C4a6 L6 <  5ss 5a=4, C4a6 l6 u<=4as5 /4s <=5 <0 <5s6d56/ Sa6dval a6d as@ / ?5 d5lv5<5d / Sa6 F5<6a6d, La *66 u6 /45 d5lv5ds =4a6 l6 -as 6-45<5 / ?5 u6d a6d 45<56 5//65< =la0 /4a/ 45 4ad al<5ady ad < /45 >ds a6d <5us5 / ay Sa6dvalHs d<v5<. R5s6d56/ Sa6dval l5d a6 a=/6 < <5l5v6 < /45 <5=v5ds ?u/ -as ds0ss5d ?y /45 /<als =u 5//65< / <5/u<6 < ay  /45 valu5  /45 >ds, 456=5 /45 5//6 < <5v5-. Issue:

1. 2. .

745/45< < 6/ /45<5 -as a 5<5=/5d sal5. 745/45< < 6/ -65a6s/ 5//65<.

Held:

1. #5s /45<5 -as a 5<5=/5d sal5 ?5/-556 C4a6 L6 a6d <5s6d56/ Sa6dval u6d5< a / 40 u6d5< u
 A sld s4all ?5 /


 A sld s a=:u<5d ?y /45 v56d55 <0 /45 0056/ / s d5lv5<5d / 40 6 a6y  /45 -ays s5=5d 6 A6y6> a6 a><55056/ /4a/ /45 ss5ss6 s /
. #5s /45 a=/6  <5l5v6 < <5=v5 /45 sal5 ?5/-556 40 a6d Sa6dval, /45<5<5 5//65< 6 l6>5< 4as a6y <5as6 6/ / <5/u<6 /45 >ds.



LLB 2A 

'. CA")ILLIO (S. CO*RT OF A))EALS G.R. N. L+'8 129 SCRA +1

"ay 29, 198'

Facts:

!5<56 5//65< -as a?l5 / u<=4as5 2 a<=5ls  la6d a/ a6 au=/6, /45 sad l/s -45<5 -6 ?y T0as d5 (5s/s/5<5d. S0l= Sa6/s 6- l5s a6 a=/6 / a66ul /45 l5vy a6d /45 sal5  /45 a<=5ls  la6d, /45 /<al =u<u6d /4a/Hs 45<56 5//65< 4ad a=:u<5d 6 <>4/ v5< /45 a<=5ls  la6d s6=5 /45 a<=5ls  la6d -5<5 6 l6>5< /45 <5056/ d5?/< d5 v5 /45 /05   /45 sal5 a6d au=/6. !56=5 /4s 5//6 < =5 /45 jud>056/  /45 a5lla/5 =u
1. 2.

74 4as su5<< <>4/ / /45 dsu/5d a<=5ls la6dM I6 =as5s  du?l5 sal5 su=4 as /4s -4 4as su5<< <>4/s.

Held:

1. T45 =u4/ v5< /45 dsu/5d la6d, 6 ><u6ds /4a/ I/ s s5//l5d 6 /4s ju<sd=/6 /4a/ a sal5  <5al 5s/a/5, -45/45< 0ad5 as a <5sul/   a <va/5 /ally 55=/v5 a>a6s/ /4s/  /45 =us/5< s =6=5<65d /45 l5>al -65<  /45 l/ s /45 jud>5056/ d5?/< d5 (5 /45 /05 / -as sld 6 au=/6 /45<5<5 / all 4s <>4/s / 45<56 5//65<. Fud //l5 as a>a6s/ a << /s/5d a/4 4as su5<< <>4/ 6 =as5s  du?l5 sal5.

1

LLB 2A 

'. KERR & CO. LTD (S. COLLECTOR OF INTERNAL RE(EN*E G.R. N. '  )4l. 

$u65 2, 19'

Facts:

)5//65< C0a6y ?u>4/ >ds <0 S4a-, 7alla=5 & C.  Cal=u//a, I6da, 6 -4=4 /45y 5<5d a <=5d a6d -as a==5/5d, )5//65< 6- 6 /45< -6 6a05 =6/ds < a 0u=4 4>45< <=5 -4=4 6=lud5s /45< </. )5//65< 6- assals /45 a=/6  /45 >v5<6056/ -4=4 =ll5=/5d /450 /
1. C0a6y. 2. . a
745/45< < 6/ /45<5 s a 5<5=/5d sal5 ?5/-556 5//65< a6d S4a- & 7alla=5 745/45< < 6/ /45<5 -as a 5<5=/5d sal5 ?5/-556 5//65< a6d l=al ?uy5
Held

1. #5s /45<5 -as a 5<5=/5d sal5 s6=5 /45 <=5 -as al<5ady a><55d u6 < /45 5<  -as a==5/5d 2. N, /45<5 -as 6 sal5 ?5/-556 l=al ?uy5ds 65v5< 56d5d 6 /45 4a6ds  /45 5//65< ?u/ d<5=/ly / /45 l=al ?uy5a6 </ < /45 /ds / /45 l=al  ?uy5a>5 6 a6y =6/
2

LLB 2A 

CATI"BANG, $OANNE A. +. )EO)LES !O"ESITE & !O*SING COR). (S. CO*RT OF A))EALS G.R. N. L12 1 SCRA 

D5=50?5< 2, 198'

FACTS:

T45 )!!C ?a L/ ' -/4 a6 a<5a  ',182.2 s:ua<5 05/5us/ 19 ?u/ a<v5d 6 F5?u5la S/. D06>, E6<:u5 Es/5?a6, (<>l )6;6, L56a a6d u< /455s. T45 /<al =u a6d u< /45
 745/45< < 6/ /45<5 -as a 5<5=/5d sal5  L/ ', -/4 /45 <5du=5d a<5a, / /45 "56d;aHs -4=4 /45y =a6 56<=5 a>a6s/ /45 )!!C ?y a6 a=/6 < s5== 5<<0a6=5. HELD:

 75 4ld /4a/ /45<5 -as 6 5<5=/5d sal5  L/ '. I/ -as =6d/6ally < =6/6>56/ly  a-a45< au/4</5s.  7456 /45 la6 -/4 /45 a<5a  L/ ' <5du=5d / 2,8. s:ua<5 05/5 /45< a==5/a6=5  /45 a-a4 /45 a<5a -as <5du=5d a6d / ?va/5 ally du?/ 6 /45 0a//5<. T45y dd 6/ d s. T45 )!!C ?a4/s 6 -/4d /45 /56/a/v5 a-a  06ds u6 /45 /46> -4=4 s /45 ?j5=/  /45 =6/v5<66> /45 <0  =6/


LLB 2A 

+1. ANG (S. T!E CO*RT OF A))EALS G.R. N. 8+8 1 SCRA 28

F5?
FACTS:

)5//65 a6d Rsal6da A6>, ?</45< a6d ss/5<, a<5 /45 -65><5>a/5 a<5a  2,9 s:. 0 -4=4 /45y  u<=4as5d a/ a <=5  )8,.. N5>/a/6s -5<5 u6d54 /s <5sd56/ !56 a =45=@ 6 /45 a0u6/  )+,. />5/45< -/4 a <5=5/ 50?dy6> /45 /5<0s a6d =6d/6s  /45< a><55056/ 6d=a/6> /45 a><55d //al <=5  )1,,. T45 a==0a6y6> <5=5/ -as 6/ <5/u<65d ?y A6> a6d 6s/5ad a6/45< <5=5/ <5a<5d a6d s>65d ?y A6> -4=4 dd 6/ s/a/5 /45 a><55d <=5 a6d <-a d50a6d5d / L55 C4uy / ay /45 ?ala6=5  /45 u<=4as5 <=5 a6d alu<5 / d s  -ll <5sul/ 6 /45 =a6=5lla/6  /45< a><55056/. L55 C4uy <5l5d /4a/ /45y 4ad ?556 <5ady  s6=5 D5=50?5< / 5<<0 /s a<55056/ -4l5 A6> 4ad 6/ y5/ =0l5d -/4 /45< u6d5 / =l5a< /45 su?j5=/ <5 d50a6d5d /45 <5u6d  /45 ) +,. d-6 ay056/ 6 a==u6/  /45 alu<5  A6> / =0ly -/4 /45< u6d5 a6d /45< su?s5:u56/ -/4d / <5/u<6 /45 d-6 ay056/, L55 C4uy l5d a =0la6/ < /45 =ll5=/6  a su0  065y -/4 da0a>5s ?5<5 RTC. T45 /<al =u. CA <5v5 -5<5 /45 65s -4 ?<5a=45d /45 a><55056/. ISSUE:

 745/45< < 6/ A6> ?<5a=4 /45 a><55056/ a6d /45 a><55d <=5 s )2,',..

HELD:

 #5s, A6> s la?l5 / <5u6d /45 ) +,  d-6 ay056/  L55 C4uy. CA u6d /4a/ A6> ?<5a=45d /45 a><55056/ -456 /45y al5d / u6d5 -ll <50v5 a6d =l5a< /45 su?j5=/ <5 s4all d5lv5< a d55d  a?slu/5 sal5 6 av<  L55 C4uy -/4 all 5a/6s, su=4 as /45 =6/ aa/6, <5slv5 /45 =6/ 6/ ?5 5<0//5d < a sl>4/ < =asual  ?<5a=4  /45 =6/ /45 a><55056/. T45 /- =6d/6s /4a/ -5<5 ?<5a=45d ?y 5//65a/6s / ?u/ 05<5ly a6 6=d56/al u6d5. T45 <5s=ss6  /45 =6/<u6d al65. L55 C4uy a/ 4/ d56/5 adv=5 <0 A6> as /  -456 /45y =a6 =0ly -/4 /45 =6d/6s. I6d55d, / -as /45 alu<5  /45 A6> / =0ly -/4 '

LLB 2A 

/45 =6d/6s  /45 a><55056/ /4a/ =aus5d /45 d5lay 6 /45 ay056/ ?y L55. 7456 A6> <5us5d / <=55d -/4 /45 sal5 u6l5ss L55 a><55d / ay /45 4>45< <=5, A6> /45<5?y =00//5d a s5<us ?<5a=4  /45 a><55056/. T45<5 -as a 5<5=/5d =6/ =a66/ 6=<5as5 /45 u<=4as5 <=5 a><55d u6 -/4u/ /45 =6s56/  <va/5 <5s6d56/. L55 4ad /45 <>4/ / <5s=6d /45 a><55056/. S6=5 A6> 4ad al<5ady sld /45 <55< 5<<0 / d5lv5< /45 <5<55056/. CA a/ly =4a / ?5 Jdu?l5d5al6>.J  As / /45 a><55d <=5, /45<5 s s 6 du?/ /4a/ /45<5 -as a 5<5=/5d =6/ -5<5 /45 65s -4 =l5a65d. !56=5, su=4 ?s=u</y 0us/ ?5 =6s/a6s/ /450. I /45 / / 56/5< 6/ su=4 a6 a><55056/ -/4 C4ua a/ a l5ss5< u<=4as5 <=5. T45 6ly l>=al =6=lus6 s /4a/ A6> 4ad 6/56/6ally 0//5d /45 <=5  )1,, 6 /45 <5=5/ /45y s>65d 5/45< / =05l L55 C4uy / a><55 / a <=5 6=<5as5 < / 56a?l5 /450 / ?a=@ u/  /45< a><55056/ 6/-/4s/a6d6> /45< la6 / <5du=5 /45< =a/al >a6s /a la?l/y. T45 =la0  A6> s /4a/ /45y =uld 6 l6>5< a==5/ /45 5 4ad 56/5<5d 6/ a6 JA><55056/  )u<=4as5 < Sal5J -/4 Dl als a<>u5 /4a/ /45 d=u056/ s a6 a><55056/ a6d 6/ a 05<5 5<. 75 6d 6 =>56/ ?ass / v5- /45 sa05 as a 05<5 5<. I/ s =l5a<55056/ /4a/ 5//65 ?6d /450s5lv5s / d5lv5< / C4ua /45 d55d  sal5 u6 ull ay056/.

+

LLB 2A 

+2. C!R#SLER COR)ORATION (S. CO*RT OF A))EALS G.R. N. L++8' 1 SCRA +

D5=50?5< 19, 198'

FACTS:

)5//65< s a d05s/= =<a>5d 6 /45 ass50?l6> a6d sal5  0/<  v54=l5s a6d /45< au/0/v5 <du=/s. R5s6d56/ Sa0?@ "/565 /45 5<d <5l5va6/ / /45s5 <=55d6>s, -as /s d5al5< < au/0/v5 <du=/s -/4 =5s a/ Ba=ld Sa0?@, Ba=ld a6d Ill Sa0?@, Ill. O6 O=/?5< 2, 19, Sa0?@, Ba=ld,  a>56/, All5d B<@55 C<5 lad5d /45 >ds 6 ?a<s Nav>a/6 C0a6y, < d5lv5 /45 <=5  /45 sa<5 a =4a<>5s, Sa0?@, Ba=ld, <5us5d / ay =la06> /4a/ / 4ad 6/ <5=5v5d /45 05<=4a6ds5 /4a/ 5//65< als d50a6d5d /45 <5/u<6  /45 05<=4a6ds5 < /45< valu5 <0  All5d B<@55 a6d N5><s Nav>a/6, ?u/ ?/4 d565d a6y la?l/y. I6 /s A6s-5<, Sa0?@, Ba=ld, d565d 4av6> <5=5v5d <0 5//65< < <0 a6y  /s =d556da6/s, /45 au/0/v5 <du=/s <55<<5d / 6 /45 C0la6/, a6d <5ss5d 6 @6-l5d>5  4av6> 
 745/45< < 6/ Sa0?@ Ba=ld ?5a < -4=4 / s la?l5 6 da0a>5s / C4
N, Sa0?@ Ba=ld =a66/ ?5 aul/5d < 6/ a==5/6> < <5us6> / a==5/ /45 s4056/ <0 N5><s Nav>a/6 u< y5a, Sa0?@ Ba=ld 6/a/5d, ?u/ dd 6/ u<s Nav>a/6 /4a/ ?5=aus5 s05 a, /45y -uld jus/ ?5 6<05d as s6 as /45 0ss6> aa ?u/ -5<5 al<5ady d5/5<<s Nav>a/6 =uld 6/ <du=5 /45 05<=4a6ds5 6< as=5ds l5ss /4a6 45 =6/<s Nav>a/6 -as /45 al>56/ 6 al6> / d5lv5< /45 =0l5/5 s4056/ 5/45< / Sa0?@, Ba=ld, < / Sa0?@, Ill, ?u/ as /45 T<al Cu  a jud=al a=/6. T4us, 6 /45 las/ a6alyss, / s 5//65< /4a/ 0us/ s4uld5< /45 <5sul/6> lss. T45 >565056/  <5s6d56/ A5lla/5 Cu


LLB 2A 

+. ARTE"IO KATIGBAK (S. CO*RT OF A))EALS G.R. N. L1'8 ' SCRA 2'

$a6ua
FACTS:

T4s =as5 a<s5 <0 a6 a><55d u<=4as5 a6d sal5  a Du?l5 D?a@ u6 <5ad6> a6 adv5 a6d 6s5=/5d /45 5:u056/. T45 <=5 :u/5d -as )12,.. D5s<6> a <5du=/6  /45 <=5, Ka/>?a@ -as <55<<5d / Da65l Eva6>5ls/a, /45 -65<. A/5< /45 055/6>, / -as a><55d /4a/ Ka/>?a@ -as / u<=4as5 /45 -6=4 < )12,., aya?l5 a/ )+,. u6 d5lv5d =6d/6. Ka/>?a@ -as a<s5d /4a/ /45 -6=4 655d5d s05 <5a. I/ -as /456 s/ula/5d /4a/ /45 a0u6/ 65=5ssa?a@ ?u/ d5du=/?l5 <0 /45 6/al ay056/  )+,.. T45 <5a?a@ < /45 u<s5. F< 65 <5as6 < a6/45<, /45 sal5 -as 6/ =6su00a/5d a6d Ka/>?a@ su5d Eva6>5ls/a, Lu6d?5<> a6d /45 la//5<s =0a6y, < /45 <5u6d  su=4 a0u6/. Lu6d?5<> a6d Eva6>5ls/a l5d s5a6> 66la?l/y < /45 a0u6/ s6=5 /45 sa05 ?l>a/6 < <5u6d -as u<5ly a 55ls/a a6d la6/ Ka/>?a@. Eva6>5ls/a, 6 4s a<55056/ ?5/-556 40 a6d Ka/>?a@ < /45 u<=4as5 a6d sal5  /45 -6=4 a6d /4a/ Ka/>?a@  adva6=5d /45 ay056/ < /45 sa<5 a?a@ <5us5d / =0ly -/4 4s =6/5ls/a -as <=5d / s5ll /45 sa05 / a /4 a lss  )2,.. T45 l-5< =ual 6/5<5s/. T45 Cu056/. )la6/a5ll55 Ka/>?a@ ?<u>4/ /45 0a//5< / /4s Cu
 745/45< < 6/ Eva6>5ls/ =a6 dss5  /45 <5
T45 a=/s  /45 =as5 u6d5< =6sd5 / /45 Cu ju<s4/ / <5s5ll /45 5:u056/, /45<5<5, =a66/ ?5 dsu/5d. I/ -as als u6d ?y /45 Cu ?556 6ly < )1,., 6s/5ad  )12,. as a><55d u6, sad d5<56=5 / ?5 ?<65 ?y /45 sus5d  v56d55 -4 al5d / /a@5 d5lv5


LLB 2A 

+'. $*LIAN BORRO"EO (S. $OSE FRANCO # FRANCO, ET. AL G.R. N. 198 + )4l. '9

S5/50?5< 2, 19+

FACTS:

O6 /45 29/4  A<l, 192, a6d ?5<5 /45 6/a<55056/ / s5ll a <5 s5/  =6d/6s -45<56 5a=4 a<55056/ s /4a/ la6/ ?5 >v56 s 06/4s <0 /45 da/5  /45 55=u/6  /45 6s/ /4a/ jud>056/  ?5 <56d5<5d 6 4s av< a6d a>a6s/ /45 d556da6/s. D556da6/s 6 /45< a6s-5< s/a/5d /4a/ /45 la6/ 4as al5d / =0ly -/4 /45 =6d/6s u6d5< -4=4 /45 <0s5 / s5ll /45 <5
 745/45< < 6/ la6/ 4as /45 <>4/ / =05l /45 d556da6/s / =a<<55056/ / s5ll 6/-/4s/a6d6> 4s alu<5 / =0ly -/4 /45 =6d/6 6 /45 a><55056/. HELD:

 #5s, la6/ 4as /45 <>4/ / d s. T45 a><55056/ 6 /45 aa/6 / s5ll. I/ s 6ly a 05<5 6=d56/al s/ula/6 -4=4 /45 a<55056/. B56> 6/ =6/<55056/ < <0s5 / s5ll. Als, /45 =6/a/6s a6d s =6sd5<5d ?la/5aa/6 / ?uy /45 <5a/6 / s5ll /. )la6/ / 5<5=/ /45 a5a/6 / s5ll /45 <5<55056/ d5s 6/ =<5a/5 <5=<=al <>4/s a6d /45<5<5, d556da6/s d 6/ 4av5 /45 <>4/ / =a6=5l /45 ?l>a/6. As s/a/5 6 /45 =as5, 65 ?l>a/6 s 56/<5ly 6d556d56/  /45 /45<. T45 la//5< ?l>a/6 s 6/ su?a/6 / 5<5=/ /45 //l5 d55ds / /45 <5056/  /45 l-5< =u<55056/.

8

LLB 2A 

DA)ILIN, RAI%A !. ++. TAN LEONCO (S. GO IN3*I G.R. N. L8 8 )4l. +1

S5/50?5< 1, 19

Facts:

)la6/ Ta6 L56= l5/ < C46a 6 198, ?5<5 l5av6>, 45 /u<65d v5< /45 0a6a>5056/  4s a?a=a 450 la6/a/6 / Ta6 T6>ua6. Ta6 T6>ua6 ?/a65d )8  -5 < a =45:u5. *6 <5/u<66> <0 C46a, Ta6 L56= duly <5s56/5d /45 C45:u5 / L0 *y=, -4 <5us5d ay056/ ?5=aus5 45 4ad <5=5v5d 6s/u056/ Bll  5=4a6>5 -as 6/ </5s/5d a/5< <5s56/056/, a6d /4a/ /45<5 s s05 :u5s/6  /45 <>4/  /45 la6/ / <5=v5< u6 sad ?ll -/4u/ /45 sa05 4av6> ?556 duly </5s/5d. Issue:

 745/45< < 6/ </5s/ s 655d5d 6 /4s =as5 6 
Held:

NO. I6 as 0u=4 as /45 d556da6/ 4ad 40s5l 5, </5s/ a6d 6/=5  66ay056/ u6d5< /45s5 =6d/6s, -as u665=5ssa /45<5a/5<, -/4u/ a6y aul/  /45 la6/, -as lss  /45 d556da6/.

9

LLB 2A 

+. ASIATIC )ETROLE*" CO". (S. COLLECTOR OF INTERNAL RE(EN*E G.R. N. L128 8 )4l. +1

 Au>us/ 2, 1918

Facts:

T45 d556da6/, u6d5< /4<5a/  56al/y, =05ll5d /45 la6/ / ay /45 6/5<6al <5v56u5 /a <vd5d < u6d5< a?v5 sad s5=/6  A=/ N. 2'2 u6 all su=4 ls -4=4 /45 la6/ 4ad 6 4a6d 6 /45 al, < /45 <5as6 /4a/ /45 la- 4ad 5<5ssly <5l5v5d 40 <0 /45 65=5ss/y  ay6> /45 sa05 6 all su=4 ls -4=4 45 4ad Jdss5d  / =6su05al sal5  su=4 ls ?5<5 $a6ua4 /45 sa05 4ad 6/ ?556 a=/ually d5lv5<5d /45y 4ad ?556 Jdss5d J a6d 45  -as /45<5<5 <5l5v5d <0 /45 65=5ss/y  ay6> /45 /a 0s5d ?y sad A=/. N =6/56/6  -as 0ad5 /4a/ /45 ls Jdss5d J 4ad ?556 dss5d  / J0a6ua=/u<5 /45< /46>s, <vd5s /4a/ J6 /a 0s5d ?y la- s4all ?5 =ll5=/5d 6 su=4 a
 745/45< < 6/ a d5al5< s <5:u<5d / ay /45 6/5<6al <5v56u5 /a, <vd5d < u6d5< s5=/6 1, a
C6sd5<6> /45 <vs6s  sad :u/5d s5=/6, / s =l5a< /4a/ /45 la6/ =uld 6/  ?5 =05ll5d / ay /45 /a 0s5d ?y sad A=/ u6 065 /45 6/5<6al <5v56u5 /a 0s5d ?y /45 d556da6/. "<5v5<, /45 L5>sla/u<5, ?y A=/ N. 2''+, ully <5=>6;5d /4a/ /45 4 0<5 < l5ss /4a6 a =6/


LLB 2A 

+8. LEO3*INCO (S. )OSTAL SA(INGS BANK, ET AL. G.R. N. L2 ' )4l. 2

 Au>us/ 2+, 192+

Facts:

T4s s a =as5 6vlv6>  a 5=5 < a<=5l  la6d ?5l6>6> / /45 Ba6@, s/ua/5d a/ Nav/as, )<v6=5  R;al, 4av6> 5<5d )2, < sad <55d /4a/ 45 -as /45 4>45s/ ?dd5< a/ a u?l= au=/6 45ld ?y /45 d556da6/s 6 "a<=4 1, 192'. T456 45 -</5 a l5//5< / /45 d556da6/s 6 "ay 9, 192', advs6> /4a/ 45 -as <5ady / /56d5< ay056/ < /45 la6d as s6 as /45 d55d  sal5  /45 sa05 6 4s av< s 55=u/5d a6d d5lv5<5d ?y /45 d556da6/s. T4a/ /45 d556da6/s <5us5d / 55=u/5 /45 d55d 6 s/5  <5:u5s/s 0ad5 /45<5< ?y 40 a6d /4a/ sad <5usal =aus5d 40 da0a>5s 6 /45 su0  )2+, 0<5 < l5ss. )la6/ 5s a0u6/6> / )2+,, a6d /45 =s/s. Issue:

 745/45< < 6/ L5:u6= 0ay =05l )SB a==5/ 4s 5< a6d / 55=u/5 a d55d  sal5  /45 la6d 6 4s av<. Held:

N. I6 a <5slu/6 ad/5d ?y /45 ?a /45 sal5 a/ u?l= au=/6  /45 <5 sad sal5, /45 d556da6/s 5<5ssly <5s5the right to re=ect an1 and all bids+. $1 taking part in the au=/6 a6d 5<6> L5:u6= vlu6/a<ly su?0//5d / /45 /5<0s a6d =6d/6s  /45 au=/6 sal5 as a66u6=5d 6 /45 6/=5 a6d 4as =l5a5d /45 <>4/ / <5s5<u6d  a=/6 / =05l /45 )SB / 55=u/5 a d55d  sal5  /45 la6d 6 4s av< 6< / =0ly 4s ?d a6d 5<. T45 -65<  /45 <54/ / <5s=<?5 /45 0a665<. T45<5<5, /45 s56/56=5 a5al5d <0 s4uld ?5 a6d s 45<5?y a<05d, -/4 =s/s a>a6s/ /45 a5lla6/.

1

LLB 2A 

+9. FIDELIT# & DE)OSIT CO. (S. 7ILLIA" A. 7ILSON, ET AL. G.R. N. 28' 8 )4l. +1

"a<=4 1+, 19

Facts:

O6 O=/?5< 1, 19', /45 la6/ l5d a =0la6/ a>a6s/ 7ls6 a6d T45 A05<=a6 Su<5/y C0a6y as@6>, 056/ ?5 <56d5<5d a>a6s/ 7ls6 < /45 su0   ',''.9, /4a/ a0u6/ 4av6> ?556 ad ?y la6/ / /45 Gv5<6056/ u6d5< la6/s su<5/y   ?6d s5=6d, /4a/ /45<5 ?5 al5d / /45 ay056/  sad jud>056/ /45 sad su0  8+ u6d 6 ss5ss6  7ls6 a6d /4a/ sad la6/ ?5 <55<<5d 6 /s <>4/ / /45 sad 065y a6d / <5=5v5 /45 sa05 a6d /4 < a6d ad06s/5<6> sad a0u6/ du<6> /45 56d56=y  /45 =as5.  7ls6 4ad =5d5d a6d /4/s 6 a6d / /45 sad 8+ 6 ay056/ 6 a==u6/  a la<>5< su0456 -5d ?y sad 7ls6 / /45 sad !.D. I6 /4s =as5  6/55/45< 6 =5a6s/ /45 =la0  /45 6/56> 6 /45< a4/ /4a/ /45 6/5
 745/45< < 6/ T5<<5ll a6d T45 Fd5l/y a6d D5s/ C0a6y  "a
I6 =6<0/y -/4 sad d=/<65 as 5s/a?ls45d 6 a4/s a<5 a=:u<5d a6d //, ?y  /5s/a/5 < 6/5s/a/5 su==5ss6, a6d, 6 =6s5:u56=5  =5=al al=a/6  /4s dss/6 a JA =<5d/< 4as /45 <>4/ / /45  <0 /45 /05 /45 ?l>a/6 / d5lv5< / a<s5s. !-5v5<, 45 s4all 6/ a=:u<5 a<5al <>4/.J A6d /45 -65 =6s//u/5s a 65=5ssa /45 -65565a
2

LLB 2A 

DO"OS"OG, "ATILDE(ERA S. . R*FINA #ATCO (S. $ES*ALDO GANA  G.R. N. L8 1 )4l. +

"a<=4 2, 199

FACTS:

Ru6a #a/= ?<u>4/ /45s5 <=55d6>s a>a6s/ $5suald Ga6a < /45 <5=v5 l/ s/ua/5d 6 /45 0u6=al/y  Ca?uya, )<v6=5   La La>u6a, a d5s=</6  -4=4 s =6/a65d 6 /45 =0la6/. S45 5s, /4a/ sad d556da6/ ls5 45 =<s 5s/6> /45<56 a/ /45 <5s56/ /05 as -5ll as /45 5655d 6 /45 =0la6/, /45 d556da6/, 6 4s a as s5=al d556s5 F l/ a6d /45 /- a<=5ls  la6d <55<<5d / 6 /45 =0la6/, 45 4av6> a=:u<5d /450 <0 Eu>56 A6dal ?y a =6/ / -as s/ula/5d ?5/-556 /45 aa/5d la6ds s/ua/5d 6 /45 5as/ a6d -5s/ sd5  /45 <ad <0 Cala0?a / Ca?uya, as -5ll as /45 ?uld6> l/ =6=5<66> -4=4 /45 d556da6/ 4ad 5<5d 5vd56=5, a<5 /45 sa05 as /4s5 =la05d ?y /45 la6/. ISSUE:

 745/45< < 6/ -4 a06> /45 u<=4as5
 A== / /45 Cvl Cd5, a6d ?5<5 /s 56a=/056/, / -as al<5ady =006 d=/<65 /4a/ a =6/ a6d /45 <=5, a6d s =6su00a/5d u6 /45 ay056/  /45 <=5 a6d /45 d5lv5. T45<5 0>4/ ?5 a :u5s/6 as / -4=4  /45s5 a=/s -uld au/4<;5 6/5, 6 du?/, /4a/ u6/l /4s s <5al;5d /45 <5 ju<sd=/6  /45 :u5s/6  d066, a6d -4=4 0ay d5lv5< /45 <5 65- =0l=a/6s a6d 556s5s. Bu/ 5v56 u/sd5  /45 sad /5<0, < a/5< /45 l0/ 5d ?y la-, -456 /45 s/a/5  /45 <=55d6>s 6 55=u/6 6 l6>5< 5<0//5d a6 6/55 / <5j5=/ /45 sa05 ?y a6 4/  /45 /4a6s/ /45 <5< 54/ ?5 <5<, as <vd5d 6 a 56//l5d /  ?<6> a6 a=/6 a>a6s/ /45 54/  a=/6  /45 /4s 6 55=u/6  -5<5 56d6> a6d ?5<5 /45 =6su00a/6  /45 jud=al sal5 ?y a6y  /45 a=/s 5d 6 a sld adjud=a/5d 6 ay056/ ?u/ -/4 <5s5=/ / a6 a=/6 < <5=v5 as /45 <>4/ 4as 6/ 5<5d ?y l0/a/6. !56=5, /45 sl56=5  /45 d556da6/ 6 /45 a=5  /45 <=55d6>s 6 

LLB 2A 

=665=/6 -/4 /45 a//a=4056/, adjud=a/6, a6d ss5ss6  /45 <5/0a=y  /45 sal5 0ad5 ?y  Eu>56 A6dal / $5suald Ga6a, a6d 6 v5-  /45 a=/ /4a/ /4s =6/ /4a/ Eu>56 A6dal =uld valdly s5ll /450 / $5suald Ga6a a6d /45 =<=u0s/a6=5 /4a/ /45y -5<5 su?j5=/ / /45 =<5d/  Isd< #a/= a>a6s/ /45 sus5s A6dal a6d Fa=l= -as 6/ a6 ?s/a=l5 / /45 vald/y  /45 sal5 ?5=aus5 /45y -5<5 6/ su?j5=/ / /45 s5=u</y  /45 =<5d/ as ?y a <5al <>4/ <0ally a//a=45d / /45 sad la6ds, ?u/ ?y /45 05<5 d5lv5
'

LLB 2A 

1. K*EN%LE & STREIFF (S. "ACKE & C!ANDLER, ET AL. G.R. N. L+29+ 1' )4l. 1

D5=50?5< 1, 199

FACTS:

T4s s a6 a=/6 ?<u>4/ ?y /45 la6/ / <5=v5<  /45 d556da6/s /45 su0  1, 5ss, /45 valu5  =5 a sal6 ?a<, u<6/u<5, u<6s46>s, a6d /u<5s. T45 la6/ all5>5s /4a/ 6 < a?u/ /45 06/4  $a6ua6 Sal6 6 Cav/5, )<v6=5  Cav/5, =6ss/6>  ?a<, u<6/u<5, u<6s46>s, a6d /u<5s,  /45 valu5  1, 5ss /4a/ du<6> /45 sad 06/4  $a6ua056/ s5=u<5d ?y /45 d556da6/ "a=@5 & C4a6dl5<, a>a6s/ S/a6l5y & K<56d< /4a/ sad la6/ 6/5d /45 s45<, 6 /45 0a665< <vd5d ?y la-, /4a/ / -as /45 -65<  sad >ds a6d  su=4 =la0 u6 /45 ads u6d5< sad 55=u/6 /4a/ sad <0   "a=@5 & C4a6dl5< -as /45 u<=4as5<  sad >ds a6d /45 sa05 -5<5 d5lv5<5d / / /4a/ /45 d556da6/s Ba=4v56 / /45 s45< ?y  "a=@5 & C4a6dl5< ?5<5 sad >ds -5<5 sld. T45 d556da6/s 6 /4s =as5 all5>5 /4a/ /45 <55 /4a/ du<6> /45 06/4  $a6ua 6d5?/5d 6 a =6sd5 /45 <5 >ds a6d ay6> /45<5< -/4u/ <55<56=5 / /45 la6/ 6 /4s =as5. ISSUE:

 745/45< < 6/ /45 sad 6s/ /45 <5
T45 =as5  /45 Fd5l/y a6d D5s/ C0a6y a>a6s/ 7ls6 8 )4l. +1 lays d-6 a d=/<65 -4=4 -5 /46@ s d5=sv5  /4s =as5. I6 /4a/ =as5 / -as 45ld /4a/ /45 -65v5s /45 -uld?5 u<=4as5< 6 <>4/s 6 sad <5a6s/ a 5 -/4 /45 <5a6s/ A. S. 7a/s6 & C.  O Ga;., '2+, 1 =/5d ?y /45 a5lla6/ 6 /s ?<5, d5s 6/ sus/a6 /s =6/56/6. T4a/ -as a =as5  /45 sal5  <54/ / /a@5 ss5ss6  /45 <5ds -as vald 6 /45s5 Isla6ds ?5/-556 /45 a4/s  /4a6s/ /45 sa05. I6 /45 =as5 a/ +

LLB 2A 

 ?a< / s 5vd56/ /4a/ /45 ?ll  sal5, s =all5d, -as 6 6 s56s5 a =6d/6al sal5  <5a6s/ A. S. 7a/s6, & C., a6d /45 <6=l5s al=a?l5 /45<5/ a<5 56/<5ly 6al=a?l5 6 /45 =as5 a/ ?a<. "<5v5<, ss5ss6  /45 <5 u<=4as5d /45 <5d //l5 / /45 <5a6s/ /45 la6/ 6 /4s =as5.



LLB 2A 

2. GON%ALES ET AL. (S. RO$AS G.R. N. +''9 1 )4l. +1

"a<=4 22, 191

FACTS:

T4a/ /4s la6d  s455d / /45 ss/5 /45< l5/05, -4 a<5 sad / 4av5 645</5d / <0 /45< >, a6d ?56> =-65666> 6 "a<=4 21, 189+, / -as 6/ / /5<06a/5 u6/l /45 sa05 day a6d 06/4  19. I/ s als / ?5 ?s5s/5s/4 / d5s 6/ a5a< as a=/ually <5>s/5<5d /45<56 /4a/ /45 /- ss/5 ?/a65d ?y =0s/6 -/4 /45 Gv5<6056/ /4a/ $ula6a Sa06/5 l5/ a/ 45< d5a/4 u< l5>/0a/5 =4ld<56, / -/, B<>d "a/as, Na/ala, a6d F5lsa  (lla6u5va y Sa06/5 a6d /4a/ A/a6asa a/ 45< d5a/4 als l5/ /4<55 =4ld<56, Eu>56, "a<>a</a, a6d L56 R5y5s y Sa06/5. "a<a6 G6;al5s, 6 4s -6 ?54al a6d 6 /45 6a05   4s ?</45< a6d ss/5<, $ua6, Slv5s/s/ 1 45=/a<5s, 1 a=<5s, 9+ =56/a<5s, a6d 2+ s:ua<5 d5=05/<5s, as/6> /4a/ 45 -as /45 -65<   /45 sa05 s45
 745/45< < 6/ /45 sal5 0ad5 ?y $ula6a Sa06/5 / Al5ja6d< Rjas 6 19 -as =6su00a/5d. HELD:

 A sld s4all ?5 =6sd5<5d as d5lv5<5d -456 / s la=5d 6 /45 4a6ds  /45 v56d55. J7456 /45 sal5 s 0ad5 ?y 05a6s  a u?l= 6s/ -4=4 s /45 ?j5=/  /45 =6/ sld. O6 /45 =6/, -4=4 -as / ?5 s y5a a 1 Cvl Cd5, 122.J C6s5:u56/ly, a/ /45 d5a/4  /45 v56d<, $ula6a Sa06/5, /45 s45a/6, ?u/ 6/ d5lv5<5d, a6d =6/6u5d / <0 a
LLB 2A 

a6 5v56/ual <>4/ u6@6-6 / 45< 45a/6 / 0a@5 /45 d5lv5 56/<5ly u6a-a<5  su=4 a6 ?l>a/6, < 6 6-s5 =uld /45y 4av5 @6-6 /4a/ s45 -6> a6d ?l>a/5d / a /4 / / /45 5//65d a/4, /45y ss5ss5d /45 s45d a/4, /45y sld / a6d 6 >d a/4, /45 5//65a6s/ /4s sal5 s 55=/5d /45<5 s 6/46> /4a/ =a6 ?5 s5/ u as a v=5  /45 sad =6/, /45 s45 / /450, < /45 -65
8

LLB 2A 

. 7ALTER EASTON (S. E. DIA% & CO. G.R. N. 112 2 )4l. 18 FACTS:

O6 O=/?5< 2', 191, =u6s5l < 7al/5< Eas/6 l5d a -<//56 =0la6/ 6 /45 Cu5d as a =aus5  a=/6 /4a/ 45 -as /45 sl5 a6d 5=lusv5 -65<  a s/ll ?5a<6> /45 /5  $s5 )a4/ ?y E. Da; a6d =0a6y a>a6s/ $s5 )a /5s/5d /45 s/ll -as /45 <5 /4a/ /4s s/ll dd 6/ ?5l6> / )a /45 la6/, su>4/ 6 ?ad a/4 / 4av5 / a//a=45d /4a/, 6 O=/?5< 22, 191, / -as duly a//a=45d ?y /45 s45< -4 /@ / aa 5s / /45 5/56/  6/ l5ss /4a/ )1 a day -5<5 ?56> =aus5d /45 =la0a6/ < 5a=4 day  /45 s45< <5/a65d /45 s/ll 6 4s ss5ss6 ?5=aus5 /4s -as /45 s5as6 < /45 ds/lla/6   la6>la6>, a 5<d -4=4 las/s 6ly u6/l /45 56d  /45 06/4  Nv50?5< ?u/ /4a/ /45 d556da6/ =0a6y >av5 ?6d / s5=u<5 /45 s45< 6 4/ <=55d / s5ll /45 s/ll a/ u?l= au=/6 /4a/ /45 sad s45< -uld <=55d -/4 /45 sad u?l= sal5 a6d -uld =aus5 /45 la6/ da0a>5, v5 da0a>5d / /45 5/56/  )1 < 5a=4 day /4a/ / -as u/  4s ss5ss6,  -4=4 da0a>5s =uld ?5 6ly aa6s/ /45 d556da6/ =0a6y, /s a//<65ys, a>56/s a6d 50ly55s, a6d /45 <v6=al s45<, <5s/ /450 <0 5<<06> a6y a=/ -4a/5v5< -4=4 0>4/ <5v56/ /45 la6/ <0 us6> /45 sad ds/ll6> aa  su=4 ?6d as /45 =u4/ =6sd5< su=56/ / d5=la<5 /4a/ /45 sad s/ll s /45 5=lusv5 <5a6s/ /45 d556da6/. ISSUE:

 745/45< < 6/ -4 -as /45 -65<  /45 la6>la6> s/ll -4=4, 6 O=/?5< 22, 191.

9

LLB 2A 

HELD:

T45 a=/ /4a/ /45 s/ll -as 65v5< d5lv5<5d / /45 u<=4as5< s a6 add/6al =<=u0s/a6=5  -4=4, 6 v5-  /45 5vd56=5 addu=5d ?y /45 d556da6/ =0a6y, s/<56>/456s /45 =6v=/6 /4a/ 6 su=4 sal5 /@ la=5 a6d /4a/ /45 s/ll =6/6u5s / ?5l6> / )a4/s, d5lv5s / s a 65=5ssa d=/<65 s lad d-6 T45 -65v5s /45 -uld?5 u<=4as5< 6 <>4/s 6 sad <5a6s/ $s5 )a a/5< /45 a//a=4056/  /45 sad s/ll a6d < /45 u<s5  <5v56/6> /s sal5 a6d /45 ay056/  /45 su0 -4=4 )a
8

LLB 2A 

'. OCE$O, )ERE% & CO., (S. T!E INTERNATIONAL BANK  G.R. N. L1+8  SCRA 1

F5?
FACTS:

O6 /45 /4 day  "a<=4, 191', C4ua T56> C46>  "a6la, 55=u/5d a6d d5lv5<5d / /45 I6/5<6a/6al Ba6@6> C<65d ?y C4ua T56> C46>, 6 -4=4 / -as s/a/5d /4a/ 45 4ad d5s/5d -/4 /45  ?a6@, as s5=u</y < /45 sad 6/5, +, =uls  su>a<, -4=4 6 sad d=u056/ -5<5 sad / ?5 s/<5d 6 a -a<54us5 s/ua/5d a/ N 18, Call5 T65l5<s, B66d, "a6la. I/ a5a /4a/ /45 su>a< -as 6 /45 -a<54us5 6 /4a/ da/5, /4a/ /45 ?a6@ dd 6/ /a@5 ss5ss6  / -456 /45 d=u056/ -as 55=u/5d a6d d5lv5<5d, a6d /4a/ C4ua T56> C46> =6/6u5d / <5/a6 /45 su>a< 6 4s ss5ss6 a6d =6/<l. T45 ?a6@ 0ad5 6 5a< s/<5d 6 /45 sad -a<54us5 -as 0u=4 l5ss /4a6 /45 +, =uls 056/65d 6 /45 =6/<55056/ ?5/-556 /45 ?a6@ a6d C4ua T56> C46> -/4 <5s5=/ / /45 all5>5d l5d>5  /45 su>a< -as 65v5< <5=4 / s s/a/5d /45<56 /4a/ / -as 55=u/5d < valu5 <5=5v5d. O6 /45 2'/4 day   "a<=4, 191', /45 la6/ a C46> < /45 sal5 / 40  a l/  su>a<. I/ -as a><55d /4a/ d5lv5a< / ?5 -5>45d 6 /45 ?uy5<s -a<54us5. I/ a5aa<  -as ?<u>4/ / "a6la ?y a s/5a05< 6 /45 06/4  A<l, a6d +, =uls -5<5 d5lv5<5d ?y  la6/ / C4ua T56> C46>. T45 d5lv5a< -as s/<5d 6 /45 ?uy5<s -a<54us5 s/ua/5d a/ N. 119, "u5ll5 d5 la I6dus/<a. O6 A<l 1, 191', la6/ aa<, ?u/ /45 ?uy5< <5us5d / 0a@5 ay056/, a6d u/ u / /45 <5s56/ /05 /45 s5ll5
 745/45< < 6/ =a6 /45 l5d>5  /45 su>a< / /45 ?a6@ ?5 sus/a65d u6 /45 5vd56=5 as / /45 =<=u0s/a6=5s u6d5< -4=4 / ?/a65d 4ys=al ss5ss6 /45<5M HELD:

T45<5 =a6 ?5 6 du?/ /4a/ <0 "a<=4 2', 191', 6 -4=4 da/5 /45 a<55d 6 <5>aa< -4=4 /45 s5ll5< -as / d5lv5< a6d /45 <=5 -4=4 /45 ?uy5<  -as / ay, /45 =6/a/6  /45 s5ll5< / 0a@5 d5lv5 sld -as 6/ su?j5=/ / /45 =6d/6 /4a/ /45 ?uy5<  -as / ay /45 <=5 ?5<5 d5lv5a< -as d5lv5<5d / /45 ?uy5< "a<=4 1, 191'. T45 s5ll5< d5lv5<5d / 6/ /45 ?uy5<s  -a<54us5, l5av6> / 56/<5ly su?j5=/ / 4s =6/<l. A sld s d5505d / ?5 d5lv5<5d J-456 / ass5s 6/ /45 ss5ss6 a6d =6/<l  /45  ?uy5<.J I/ s d=ul/ / s55 4- /45 s5ll5< =uld 4av5 dv5s/5d 40s5l 0<5 =0l5/5ly  /45 ss5ss6  /45 su>a<, < 4- 45 =uld 4av5 la=5d / 0<5 =0l5/5ly u6d5< /45 =6/<l  /45  ?uy5<. Aa/6s, 6 add/6 / /45 s5=al =aus5s 56u05 aus4 /45 =6su00a/5d sal5

81

LLB 2A 

<0 /45 05<5ly 5<5=/5d sal5, a6d -5 d 6/ ?5l5v5 /4a/ /45<5 s a6y <5as6 < 0a@6> /4s ds/6=/6.

82

LLB 2A 

D*ARTE, DANRIE R. +. RO"AN (S. GRI"ALT G.R. N. 2'12  )4l. 9

 A<l 11, 19

Facts:

G<0al/ /<55d u6 /45 sal5  /45 v5ss5l < /45 su0  )1+ aya?l5 6 /4<55 6s/all056/s. T45 sal5 -as <5d=/5d u6 /45 =6d/6 /4a/ / -as s5a-s/5<5d / )aul6a G<6. I /45 sad =6d/6s -5<5 =0l5d -/4 6ly /456 -ll G<0al/ u<=4as5 /45 sa05. R0a6 <0s5d 4-5v5<, / 5<5=/ 4s //l5 / /45 v5ss5l ?u/ 45 al5d / d s, /456 du5 / a s/<0, /45 v5ss5l sa6@ 6 /45 ?ay. O6 /45 /4  $u65 19', la6/ d50a6d5d < /45 ay056/  /45 u<=4as5 <=5  /45 v5ss5l 6 /45 0a665< s/ula/5d a6d d556da6/ al5d / ay. Issue:

 745/45< /45<5 -as a 5<5=/5d =6/
Held:

N. 745<5 6 vald =6/4/s < ?l>a/6s  ?5/-556 /45 all5>5d u<=4as5< a6d s5ll5<, 6< a6y l5>al <5la/6 ?6d6> u6 /450. T45<5 -as 6 5<5=/5d =6/4/s ?5/-556 /45 a
8

LLB 2A 

. NA(AL, ET AL. (S. G.R. N. 118  )4l. 9

ENRI3*E%, ET AL.

 A<l 12, 19'

Facts:

D6 $<>5 E6<:u5;, as 45<  4s d5=5as5d a<56/s, A6/6 E6<:u5; a6d Da C<a=a  (lla6u5va, -4s5 5s/a/5s -5<5 a/ /4a/ /05 s/ll u6ds/<?u/5d, ?y u?l= 6s/ 0ad5  /45 5s/a/5  Da C<a=a (lla6u5va 6 /45 =0la6/. T45 la6/s =6/56d5d /4a/ /45 d55ds 6 :u5s/6 -5<5 =6su00a/5d a6d -5<5 55=u/5d < /45 u<s5  d5=5v6> a6d d5 D6 $<>5 E6<:u5; a6d 4s a0ly. T45 =6=lus6  /45 la6/s -as /4a/ as su=4 55=u/< D6 F5 u6d5< /45 <vs6  a
 745/45< < 6/ D6 F4/  $<>5 E6<:u5; Held:

 Al/4u>4 a6 55=u/< =a66/ la-ully u<=4as5 <5 sld 6 /45 /- =6/4/  D6 $<>5 E6<:u5;, -4=4 5vd56/ly -as 6/ 6 =4a<>5  /45 55=u/<, D6 F / /45 5s/a/5, d 6/ ad06s/5< /45 45<5d/a4/s  a6y 45<. T4s <>4/ s v5s/5d 56/<5ly 6 /45 454/5s/ d5><55 l0/ /45 -5<  /45 454/ a/ -ll. T4a/ <>4/ d5s 6/ <0 a ?556 <5a=45d, /45 Cu5d 6=aa=/y  D6 F4/  $<>5 E6<:u5;, a6d 4as 6 al=a/6 / /45 <5s56/ =as5. T45 <4?/6 -4=4 a -/46 /4s =lass. C6s5:u56/ly, 5v56 u6 /45 sus/6 /4a/ /45 55=u/<, D6 F4/s  $<>5 E6<:u5;, /45 sal5 6 :u5s/6 -uld 6/ < /4a/ <5as6  ?5 6vald, /45 55=u/<, D6 F l5>ally 6=aa?l5  a=:u<6> /45 45<5d/a4/ 6 :u5s/6 as /45 la6/s 5<<65usly sus5.

8'

LLB 2A 

. *# )IAOCO (S. "C"ICKING G.R. N. '2 1 )4l. 28

"a<=4 +, 198

Facts:

*y C4a0 L6>, 6 a 6/a<al d=u056/ da/5d $a6ua / ?5 a =6/ /45s5 s4a<5s  s/=@, u6d5< /45 =4a 6 /45 005da/5 ss5ss6 a6d =6/<l  /45 v56d< a/ /45 /05  sad all5>5d sal5, 6 56d5d sal5. T45 /<al =ua6s/ /45 <5. )la6/ /0a/5 -65<. Issue:

 745/45< /45 -656al -65< / /45 la6/ 6 /4s a=/6 ?y v
 A ?6a d5 =6/al a6d 5:u/a?l5  /45 v56d< al/4u>4 as ?5/-556 /45 v56d55 a6d /45 =0a6y < =<6;5 a6d 5<0/ / ?5 <565d 6/ a l5>al //l5 -456 45 <5s56/s / d /45 a=/s <5:u<5d ?y /45 =4aula/5 05<5ly /45 <5s5=/v5 <>4/s  /45 =<4/s  a 050?5<  su=4 =0a6y < =<6;a6=5  /45 sal5, a6d, ?y /4/s  a 050?5<  a =0a6y < =<a/5d 6 =6<0/y -/4 s/a/u/ula/6s. Bu/ /45 :u5s/6 -45/45< a u<=4as5< 4as a=:u<5d a >d a6d 5<5=/ //l5 / a6y <5s, /a6>?l5 < 6/a6>?l5, s a :u5s/6 sl5ly / ?5 d5/5<065d ?y /45 <vs6s  >565 /45 sal5 a6d /4/, //l5, a6d 6/5<5s/  *y C4a0 L6> 6 a6d / /45 s/=@ 6 :u5s/6 v5s/5d 6 /45 la6/ 6 /45 1/4 day  $a6ua a<5 6vald a6d s4uld ?5 dsslv5d.

8+

LLB 2A 

8. B*ENCA"INO, ET AL. (S. (ICEO, ET AL. G.R. N. L'929 1 )4l. 9

"a<=4 +, 199

Facts:

O6 /45 28/4 day  A<l, 1898, A6as/a= Sa?a/, a/45<  A6s5l0 Sa?a/, sld a6d =6v5y5d /45 /- a<=5ls  la6d / Da "a6u5la Davd, /45 0/45<  /45 5//65<55056/ /4a/ /45 v56d< 0>4/ <5u<=4as5 /45 sa05 -/46 /4<55 y5a5d ?y 40 a6d Da Davd <0 a =6/4/  <5u<=4as5 / a 0a>5 =6/
 745/45< < 6/ /45 d=u056/ -as  a =6/4/ / <5u<=4as5

Held:

T45 d=u056/ s5/ 4/ / <5u<=4as5. I6 a =6/4/ / <5u<=4as5, -456 6 /05 s s5=5d -/46  -4=4 /45 <5u<=4as5 0us/ ?5 0ad5, / 0us/ ?5 d65 -/46 u< y5a / as a sal5  -/4 /45 <>4/ / <5u<=4as5, 6 /05 ?56> 056/65d /45<56 < /45 55<=s5  /45 <>4/ / <5u<=4as5, / las/5d 6ly < u< y5a. Al/4u>4 /45 d556da6/ Sa?a/ /5s/5d /4a/ 45 4ad ?556 6 ss5ss6  /45 <5
8

LLB 2A 

9. #A) *NKI (S. C!*A $A"CO G.R. N. +22 1' )4l. 2

D5=50?5< 1, 199

Facts:

O6 Nv50?5< 1, 19, la6/ a6d d556da6/ 55=u/5d a -<//56 a><55056/ -45<5?y  /45 ?us65ss a ?5/-556 /450 -as dsslv5d, a6d la6/ sld a6d d556da6/ ?u>4/ la6/s 6/5<5s/ 6 /45 a<55056/. A5lla6/ ad0/s /45 55=u/6  /45 =6/4/ / a <5=v5<u6d /4a/ la6/ al5d / =0ly   -/4 4s ?l>a/6 / d5lv5< /45 <55d /4a/ /45 //al 6d5?/5d65ss /4us =6/056/ -as <56d5<5d ?y /45 /<al =ua6s/ /45 d556da6/ < )1, 28.9' />5/45< -/4 6/5<5s/ u6 /45  va<us 6s/all056/s <0 /45 da/5 -456 /45y 5ll du5. F<0 /4s jud>056/ d556da6/ a5al5d, a6d /45 =as5 s 6- ?5<5 /45 Cu
 745/45< < 6/ /45 d556da6/ 4as /45 <>4/ / s5/ u a =u6/5<=la0 < u6l:uda/5d da0a>5s a>a6s/ la6/s =la0 ?as5d 6 /45 =6/a/6 Held:

C056sa/6 as d565d 6 Aus45s <5=<=ally /45 /- d5?/s as s6 as /45y 5s/ s0ul/a65usly, -4l5 a s5/  < =u6/5<=la0 0us/ ?5 l5ad5d / ?5 55=/ual. T45 <vs6s  C4a/5< +  /45 65- Cd5   Cvl )<=5du<5, a6d 5s5=ally S5=/6 9+ /45<5, >v5 / /45 d556da6/, 6 a6y a=/6 6s//u/5d a>a6s/ 40 /45 <>4/,  45 s d5s<5s, / s5=u<5 6 /4a/ a=/6 /45 6al dss/6  all =la0s  -4=4 45 0ay a>a6s/ /45 la6/, -4a/5v5< 0ay ?5 /45< 6a/u<5 < <>6, a6d /45 jud>056/ a5al5d <0 s4uld, /45<5<5, ?5 <5v5v56 a6 056/ al<5ady <56d5<5d -ll ?5 0d5d < 6/ 6 a== /45 da0a>5s all5>5d 6 /4s =u6/5<=la0.

8

LLB 2A 

!ALBI, RAS!IDA I. . $OSE FLORENDO (S . E*STA3*IO ). FO% G.R. N. ++ 2 )4l. 88

O=/?5< 2', 1911

Facts:

Eus/a:u ). F; 55=u/5d 6 "a6la a =6/ 0a/5<als, />5/45< -/4 /45 l/s 6 -4=4 /45y a<5 5<5=/5d as -5ll as /45 s5=5d ?u6da<5s. Fl<56d ad ) 2. a6d -4=4 s4all ay /45 <50a66> u< /4usa6d 6 (>a6 a/ a6y /05 du<6> /45 sad 06/4 < /45 sad 65/ 06/4. I 6 =as5 /45 ?uy5< =a66/ > / (>a6, 45 =uld ay /45 d5?/ / /45 =4u<=4 a/ (>a6 a6d ?/a6 /45 //l5  /45 4us5 a6d /4a/ 45 =uld als s56d /45 <50a6d5< / "a6la. R5= /45 06/4  $u65. Eus/a:u F; -56/ / (>a6, a6d 6 $u65 2  /45 sa05 y5a<, $s5 Fl<56d, a==0a65d ?y a 6/a /4a/ /45 /a6s/ F;. !5 as@5d /45 d556da6/ ?5 s56/56=5d a / =0ly -/4 /45 =6/ / /45 la6/ /45 <5a6, Il=s Su<, ay056/ ?5 0ad5 / /45 R0a6 Ca/4l= As/l= C4u<=4 a6d d / ay /45 =s/s  /45 /<al. T45 d556da6/ all5>5d /4a/ / -as als5 /4a/ 45 4ad sld 4s <565d /45 d55d  sal5, 45 4as d5=5v5d 6 s d6>, as 45 4ad 45a<55d u6 ?5/-556 40s5l a6d /45 la6/ as /45 <=5  /45 <5
 745/45< < 6/ /45 d5s/  '. 4 s a aa6s/ F; < =0l5/6  /45 =6/
T45 =6v5ya6=5  s /46> sld d5s 6/ d556d 6 /45 ay056/  /45 <=5. As /45 =6/056/ a5al5d s a<05d a6d /45 =s/ a>a6s/ a5lla6/.

88

LLB 2A 

1. DO"ICIANO GON%AGA vs. ANGEL $A(ELLANA  G.R. N. 8' 2 )4l. 12+

S5/50?5< , 1912

Facts:

O6 "ay 21, 191, G6;a>a ?<u>4/ su/ a>a6s/ A6>5l $av5lla6a < /45 -65  /45 ''9 s:ua<5 05/5<55d u6 a/ /45 /<al, <5:u5s/5d /4a/ 45 ?5 d5=la<5d /45 -65< /45<5 a6d /4a/ /45 d556da6/ ?5 =05ll5d / <5=>6;5 /45 said parcel to be of the plaintiff‘s 5=lusv5 a6d l5>/0a/5 -65 all /45 a=/s s5/ 65d /45 u<=4as5 all5>5d ?y /45 la6/ a6d =la0 /4a/ / -as =//us. T45 Cu056/ a6d <-a4 /45 05a6s  a ?ll  5=5/6s. I/ a5as/s/056/, >d a/4 s sus5d 6 /45 au5d 6 /4s a5al /4a/ 5/45<  /450 s4-5d ?ad a/4. Issue:

 745/45< < 6/, G6;a>a =a6 =la0 /45 -65
Held:

T45<5<5, as /45 jud>056/ a5al5d <0 s 6 a==al <vs6 a6d /45 05</s  /45 <=55d6>s, /45 sa05 s 45<5?y a<05d, -/4 /45 =s/s  /4s 6s/a6=5 a>a6s/ /45 a5lla6/. T45 ?5/-556 /45 =la0s  /45 d5<56/ u<=4as5 / /45  / a6d s/ / /45 5s/s/ 6 /4s a5al /4a/ ? #If the thing to be real  <5 / /45 person ac@uiring it !ho first recorded it in the registr1.+

89

LLB 2A 

2. (IEGEL"ANN AND CO ET AL. (S. $OSE )ERE% G.R. N. 18  )4l. 8

F5?
Facts:

Ta6 A=46> alas #a Ca6>= s a 05<=4a6/ a6d a <5sd56/  /4s =/y "a6la. !5 s /45 sl5 a6d a?slu/5 -65<  a 4a/ a=/ds a<5 <55  =4a<>5s a6d la?l/5s. !5 <5=5v5d 1 4 <0 D6 $s5 )5<5; / -4=4 45 ass>65d, sld, a6d /45 sad 5ds. T45 sad sal5 -as 55=u/5d u6d5< /45 =v56a6/ < =6d/6 /4a/  45 s4uld <5/u<6 / /45 u<=4as5< -/46 /45 5<d  /4<55 06/4s <0 /45 da/5  /45 55=u/6  /4s 6s/4/   <5u<=4as5, 6 /45 <5=s5 /5<0s a6d =6d/6s u6 -4=4 / 4as ?556 55=u/5d 6 4s av< ?y  /45 v56d<. Du5 / /4a/, $s5 l5as5d /45 sad <5 /45 /5<0 < <5d50/6, / #a Ca6>=, /45 5= < /45 06/4ly <56/al   4.  A/5< /45 da/5  /45 a=@6-l5d>5056/  /45 sad 6s/= -as d5=la<5d 6slv56/ /4a/ 6 /45 '/4 day  Nv50?5<, 191, K. "a/su0a/ -as d5s>6a/5d as ass>655 y /45 =<5d/s, s5//6> 6> d=u056/, 45 4ad ?5=05 /45 -65<  /45 <5
 745/45< < 6/ /45 sad sal5 s vald.

Held:

I/ 0us/ ?5 =l5a< /4a/ )5<5; /45 u<=4as5<  /45 >ds d5s=<?5d /45<56, s 56//l5d / /45 ss5ss6  /45s5 >ds as a>a6s/ /45 ass>655  /45 v56d<, 6 /45 6slv56=y <=55d6>s, < / /45 <=55ds  /45 sal5  /45s5 >ds ?y /45 ass>655 6 /45 =us. I6 /45 sad 6s/56u65 a6d vald sal5  /45 >ds /45<56 056/65d -/4 a <5s54/ / <5u<=4as5 /45 v56d<. T-56/y days a6d 45<5a/5< /45 jud>056/ 56/5<5d 6 /45 =u4/  /45 a5lla6/, $s5 )5<5;, / a <55<56=5, as a>a6s/ u6s5=u<5d >565655 6 /45s5 ?a6@s, / /45 ull a0u6/  /45 6d5?/5d65ss a=@6-l5d>5d 6 /45 u?l= d=u056/ a?v5 s5/ 056/ -ll ?5 56/5<5d 0a@6> <vs6 < /45 ds/<?u/6  /45s5 u6ds 6 a==
9

LLB 2A 

. SOSTENES CA")ILLO (S.CO*RT OF A))EALS G.R. N. L+'8 129 SCRA +1

"ay 29, 198'

Facts:

O6 F5?6a/5d as L/s 1 a6d 2  /45 =6slda/6 a6d su?dvs6 la6 LRC )=s. 888 a6d s5><5>a/5d <0 Ts/s/ /45 <5056/ < a su0   065y a>a6s/ T0as d5 (5056/ ?5=a05 6al a6d 55=u/ /45 /- 2 a<=5ls  la6d -4=4 /45 la//5< <5vusly sld / S0l= Sa6/s. O6 $uly 2+, 192, /45 /4<55 a<=5ls  la6d -5<5 sld a/ /45 u?l= au=/6 < ) 1,++.8 6 av<  /45 5//65< -4 -as ssu5d /45 =<<5s6d6> =5 / ?5 /45 -65<  /45 /- a<=5ls  la6d ?y <5as6  /45 <5vus sal5  40 ?y T0as d5 (5 /45 =0la6/, /45 45<56 5//65< as 65  /45 d556da6/s ?5l-, all5>5d /4a/ 45 s a6 66=56/ u<=4as5 < /45 valu5 a6d /4a/ /45 sus5d <5vus sal5 =uld 6/ ?5 <55<<5d v5< /45 l5vy a6d sal5 a/ u?l= a=/6  ?5=aus5 / -as 6/ <5>s/5<5d. A/5< du5 /<al, /45 l-5< =u056/ sus/a66> /45  vald/y  /45 l5vy a6d sal5 a/ u?l= au=/6 <0a<ly ?5=aus5 a/ /45 /05  /45 l5vy a6d sal5, /45 dsu/5d <5s/5<5d 6 /45 6a05  /45 jud>056/ d5?/<, T0as d5 (5s/5<5d 6< 6/5d 6 /45 //l5  /45 su?j5=/ l/s, =a66/ ?6d /4
 745/45< < 6/ /45 sad <>4/  //l5 / Ss/565s Ca0l -4 su?s5:u56/ly u<=4as5 /450 a/ a6 55=u/6 sal5 a6d ?/a65d /4<u>4 a =5
I/ s s5//l5d 6 /4s ju<sd=/6 /4a/ a sal5  <5al 5s/a/5, -45/45< 0ad5 as a <5sul/  a <va/5 /ally 55=/v5 a>a6s/ /4s/ /4a/ /45 <5s/s/5<5d 6 /45 6a05  /45 jud>056/ d5?/<, T0as d5 (5al. T45 65/ <5sul/ s /4a/ /45 55=u/6 sal5 0ad5 6 av<  /45 45<56 5//65< /4/s, 6/5<5s/ a6d a056/ d5?/< 6 /45 a<5s/a/5d <5 6 /45 =5
91

LLB 2A 

S6=5 /45 sal5 0ad5 6 av<  /45 v56d55 dd 6/ =0ly -/4 /45 a?v5:u/5d <vs6, /45 /d a6d s4uld ?5 </5=/5d. T45 :u5s/65d d5=s6  /45 <5s6d56/ a5lla/5 =u056/  /45 l-5< =u
92

LLB 2A 

!ASAN, A%FAR ". '. OBAA (S. CO*RT OF A))EALS AND SANDO(AL 1+ SCRA ++

"a<=4 29, 198+

FACTS:

O6 Nv50?5< 21, 19', A6=l5/ Sa6dval -65<  Sa6dvalHs a6d S6s R=5 "ll -as a<a=45d ?y C4a6 L6 -4 5<5d / u<=4as5 <0 40 1 =ava6s  <=5 a/ /45 <=5   ).2+ 5< =ava6. T45 d<v5< a//50/5d / =ll5=/ /45 ay056/ <0 C4a6 L6 a6d )5//65<  A6a=l5/ Sa6dval ?u/ /45 la//5< <5us5d, s/a/6> /4a/ 45 4ad al<5ady 0ad5 /45 ay056/ / C4a6 L6. Fu ?556 05/ -/4 <5usal, Sa6dval, as la6/, l5d su/ < R5l5v6 a>a6s/ 5//65<, ?5<5 /45 "u6=al Cu056/ -as <56d5<5d ds0ss6> /45 =0la6/. O6 a5al / <5s6d56/ A5lla/5 Cu O?aa 6a=/6 < R5l5v6 / <5/u<6 / Sa6dval, )<va/5 R5s6d56/ 45<56, 1 =ava6s  <=5 < / ay /s  valu5 6 /45 a0u6/ ).2+ 5< =ava6, -/4 l5>al 6/5<5s/ <0 /45 l6>  /45 =0la6/ u6/l ully ad. ISSUE:

 745/45< < 6/ /45 5//65<d556d56/ 4ad u6jus/ly 56<=45d 40s5l a/ /45 556s5   a6/45< ?y 4ld6> 6 / <55< ?5l6>6> / 40. HELD:

T45 jud>056/ u6d5< <5v5- s 45<5?y a<05d. N 55< ?5l6>6> / 40. T45 5//6 d556da6/ 6 4s -6 /5s/06y sad /4a/ 45  -as <5ad /45 su0  )+, ?y C4a6 L6 a6d =la05d /4a/ 45 d5lv5<5d /45 <=5 ?a=@ / /450. !-5v5<, /45 d<v5< d565d /4a/ /45 <=5 4ad 5v5< ?556 <5/u<65d. T45 d<v5a6s/ 5//65<.

9

LLB 2A 

+. DANG*ILAN (S. IAC G.R. N. L99 18 SCRA 22

Nv50?5< 28, 1988

FACTS:

 A a<=5l  l/ -65d ?y D06> "5lad -as ?56> =la05d ?y 5//65< F5l Da6>ula6 a6d <5s6d56/ Al6a "5lad.  Al6a "5lad =6/56ds /4a/ s45 a=:u<5d /45 <5> "5lad sld / / 45< -456 s45 -as jus/  y5aula6 a<a=45d 45< a6d as@5d 5<0ss6 / =ul/va/5 /45 la6d a6d / s/ay /45<56. Da6>>ula6, 6 /45 /45< 4a6d, <5s56/5d < 4s av56 / 40 ?y D06>> "5lad /4<u>4 a6 65<us d6a/6. T45 65<us a =a<5  /45 a<0 a6d /45 a<5056/  /45 ?u<al  D06>>. RTC ula6. CA <5v5. I/ / =0ly -/4 /45 <0al/5s. ISSUE:

 74 4as /45 ?5//5< <>4/ ?5/-556 a
HELD:

D06> "5lad 6/56d5d / d6a/5 /45 <5ula6 I/ s u< v5-, =6sd5<6> /45 la6>ua>5  /45 /- 6s/ "5lad dd 6/56d / d6a/5 /45 <5ula6. 75 d 6/ /46@, 4-5v5<, /4a/ /45 d655 -as 0v5d ?y u<5 l?5v56 / 5//65< Da6>ula6 6 5=4a6>5 < 4s ?l>a/6 / /a@5 =a<5  /45 d655 < /45 <5s/  4s l5 a6d <vd5 < 4s ?u<al. !56=5, / -as 6/ =v5<5d ?y /45 d6a/6s  <5al <54 a u?l= 6s/ /45<5 -as a vald d55d  sal5, )R "5lad al5d / s4- /4a/ / -as =6su00a/5d 6 a=/ual d5lv5 /45 vald/y  /45 d55d  sal5, /45 <5=ula6. I s45 dd 4av5 ss5ss6, s45 /ula6 6 19', ?y 45< -6 s-<6 ad0ss6, a6d 0v5d u/ / a6/45< l/ ?5l6>6> / 45< s/5?</45<. !5< =la0 /4a/ /45 5//65< -as 45< /56a6/ la/5< =4a6>5d / ad06s/
LLB 2A 

N =6s/4/s a<5 a=:u<5d a6d //, ?y  /5s/a/5 < 6/5s/a/5 su==5ss6, a6d, 6 =6s5:u56=5  =5 =6s//u/5s a 65=5ssa /45 -65ula6 a6d 6/ "5lad -4 s 6 a=/ual ss5ss6  /45 l/>a/5d <5056/ 0us/ ?5 6 av<  /45 Da6>ula6 < 65 -4 s 6 ss5ss6 s <5su05d /  ?5 /45 -65<, a6d =a66/ ?5 ?l>5d / s4- < <v5 a ?5//5< <>4/.

9+

LLB 2A 

. )!ILI))INE S*B*RBAN DE(. COR). (S. A*DITOR GENERAL G.R. N. L19+'+  SCRA 9

 A<l 18, 19+

FACTS:

O6 $u65 8, 19, a/ a 055/6> -/4 /45 Ca?65/, /45 )<5sd56/  /45 )4l65s, a=/6> 6 /45 <5 s:ua//5 )alay Es/a/5 6 S/a. "a<a, Bula=a6 a6d   a6/45< a<5a 5/45< 6 Las )as < )a
. T4a/ /45 )<5sd56/  /45 )4l65s s4all   ?6ds u6d5< R5u?l= A=/ Ns. 1 a6d 122 6 /45 a0u6/  ),+,. / ?5 a?s )alay Es/a/5 a/ a <=5 6/ / 5=55d ).'+ 5< s:. 05/5<. O6 D5=50?5< 29,19, )5//65< )4l65 Su?u )alay E state and the People‘s omesite and ousing Corporation, entered into a contract embodied in a public instrument entitled #*eed of   
a?v5056/65d. T4s -as 6/ <5>s/5<5d 6 /45 O=5  /45 R5>s/5<  D55ds u6/l "a<=4 1', 191, du5 / /45 a=/, 5//65< =la0s, /4a/ /45 )!!C =uld 6/ a/ 6=5 adva6=5 /45 065y  655d5d < <5>s/666> D5=50?5< 21, 19 6 /45 ><5a/ly 6=<5as5d a0u6/  )',898,11.. I/ a5a66>  /45 d55d ?y  /45 a. O6 A<l 12, 191, /45 )<v6=al T<5asu<5<  Bula=a6 <5:u5s/5d /45 )!!C / -/44ld /45 a0u6/   ),99.9 <0 /45 u<=4as5 <=5 / ?5 ad ?y / / /45 )4l65 Su?u4 /45 )!!C, ad u6d5< </5s/ /45 a?v5056/65d a0u6/ / /45 )<v6=al T<5asu<5<  Bula=a6 a6d /45<5a/5<, < 6 $u65 1, 191, ?y l5//5<, 9

LLB 2A 

<5:u5s/5d /456 S5=<5/aus/ 22, 191. )5//65< =la05d /4a/ / =5as5d / ?5 /45 -65<  /45 la6d 6 :u5s/6 u6 /45 55=u/6  /45 D55d  A?slu/5 Sal5 6 D5=50?5< 29, 19. I/ s 6- =la05d 6 /4s a5al /4a/ /45 Aud/< G565 /45 <5u6d  /45 <5al 5s/a/5 /a 6 /45 a0u6/  ),'.9 ?5=aus5 asd5 <0 /45 <5su0/v5 d5lv5a/6 / ay /45 <5al <5u5s /4a/ /45 <5su0/v5 d5lv5
 7ON /45<5 -as al<5ady a vald /
HELD:

C6sd5<6> /45 a<5056/65d a<val a6d au/4<;a/6 ?y /45 )<5sd56/  /45 )4l65s  /45 s5== / ?j5=/  /45 =6/4/ / us5 a6d 56jy /45 <5a/45<6>  /45 56d6> =<s, <  -45<5 /45 v56d< 4as 6 =6/<l v5< /45 /46> sld a/ /45 0056/  /45 sal5, a6d, /45<5<5, /s 0a/5<al d5lv5 sld, 5v56 ?5<5 /45 da/5  /45 sal5. T45 =6d/6 /4a/ 5//65< s4uld s/5< /45 d55d  sal5 a6d s5=u<5 a 65- //l5 6 /45 6a05  /45 v56d55  ?5<5 /45 la//5< s4all ay /45 ?ala6=5  /45 u<=4as5 <=5, dd 6/ <5=lud5 /45 /d s 6/ a =6d/6, <5=5d56/ / /45 /ds.  7!EREFORE, /45 a5al5d d5=s6 s 45<5?y <5v5
LLB 2A 

8. $OSE)! AND SONS ENTER)RISES (S CO*RT OD A))EALS G.R. N. L'+ 1' SCRA 

 Au>us/ 29, 198

FACTS:

O6 A<l 1, 19' <5s6d56/ Rdl T. La/ u<=4as5d /45 l/ 6 :u5s/6 <0 /45 "a@a/ D5v5l056/ C< ully ad < /45 l/, <5s6d56/ La/ =uld 6/ 4av5 / <5>s/5<5d 6 4s 6a05 ?5=aus5 a6/45< =6d/6  /45 sal5 -as /4a/ /45 d55d  sal5 =uld 6/ ?5 <5>s/5<5d a6d /45 //l5 -uld 6/ ?5 <5l5as5d / /45 ?uy5< u6/l /45 4us5 4as ?556 =0l5/5ly =6s/<55056/ / u<=4as5 a6d s5ll /45 l/  -/4 <5s6d56/ )a; Ba6aad Lau<5l. A/5< ay6> /45 ull =6sd5 /45 =6s/4/5< Al5><a N5<,  -56/ / s55 /45 Lau<5ls a/ /45 la//5<s <5sd56=5 a6d 65>/a/5d < /45 u<=4as5  /45 <5 a><55d 6 /45 /5<0s a6d =6d/6s  /45 sal5, /45 as/5<5d 6 /45 6a05  <5s6d56/ La/, /45 d55d -as s>65d -/4 /45 la//5< as v56d< a6d /45 Lau<5ls as -/65ss5s. T45 =6sd5 /s ?l>a/6s a6d / 56a?l5 / / ay /45 Lau<5ls 6 ull, 5//65< /4<u>4 "<a N5< <s5d / /45 Lau<5ls /4a/ a la6 ?5 s5=u<5d <0 a  ?a6@ us6> /45 <5
98

LLB 2A 

O6 Nv50?5< 28, 19, /45 Lau<5ls 0a>5d /45 dsu/5d <5 l5as5d /45 <556=y < I6/5<6a/6al D5v5l056/ *SAID a/ a 06/4ly <56/al  )l,.. T s/av5  <5=lsu<5, /45 Lau<5ls ad < ?a6@ la6, 6/5<5s/s a6d 556s5s, 6=lud6> /45 ),8.+ 5av56 / 5//65<, 6 /45 //al su0  ),'+2.22. O6 $uly 2+, 19 6  v5-  5//65<s <5usal / su<<56d5< /45 4us5 a6d l/ / /450, /45 Lau<5ls l5d a =0la6/ < 5j5=/056/ a>a6s/ /45 5//65< a6d *SAID -/4 /45 "u6=al Cu. O6 D5=50?5< 18, 19, 5//65< l5d a =0la6/ < a66ul056/  //l5 a6d   =6/5s a6d <5l06a5s. As 5aa6s/ 5//65<. T45 /<al =u a5al ?u/ / -as s/ay5d u6 /45 l6>  a su5
T45 <5
HELD:

F6ally, 5//65< =la0s /4a/ ?5=aus5 /45 <5us4 ?5/-556 a =6/a6s/ 5//65<.

99

LLB 2A 

IBBA, S!AR"AINE A. 9. GERONI"O )ANI%ALES ET. AL. (S. (ALERIO )AL"ARES ET. AL. G.R. N. L21' ' SCRA 

O=/?5< 1, 192

Facts:

T45 =6/<v55s 6 L/ N. 1  /45 Cadas/4/ /45 sa05 a/ /45 u?l= au=/6 sal5 6 "a<=4 1, 191 ?y v4/s, //l5, 6/5<5s/s, s4a<5 a6d a6>, <6=ally, /4a/ L/ N. 1 -as 4s d5s/5 /45 a=:us/6 ?y G5<60 6 a <va/5 sal5. "<5v5<, /45 -</  55=u/6 =uld 6/  ?5 d5=la<5d 6vald < /45 <5as6  /s 66=6<0/y -/4 /45 jud>056/ / ?5 55=u/5d 6 Cvl Cas5 N. '''. Issue:

 745/45< < 6/ /45 l-5< =u /4a/ G5<60 )a6;al5s -as /45 <>4/ul -65<  /45 l/ 6 :u5s/6 ?y va6s/ /45 a=:us/6  (al5< )al0a<5s -4 ?u>4/ /45 su?j5=/ <5
I/ s u6dsu/5d /4a/ as a< ?a=@ as "a<=4 19, 19+8, /45 l/ 6 :u5s/6 4ad ?556 dss5d . I/ =5as5d /45<5<5 as  /4a/ da/5 / <0 a056/ d5?/<.  7/4u/ s/<5/=4  0a>6a/6,  a/ /4a/ /05 /45 jud>056/ d5?/< 4ad 6 0<5 <>4/ / < 6/5<5s/ 6 /45 <5.

1

LLB 2A 

8. $OSE B. A%NAR (S. RAFAEL #A)DIANGCO G.R. N. L18+ 1 SCRA '8

"a<=4 1, 19+

Facts:

S05/05 6 "ay, 19+9, T5d< Sa6/s adv5 / ?5 a 6545-  (=56/5 "a<5lla,  -56/ / /45 Sa6/s <5sd56=5 / a6s-5< /45 C6s5:u56/ly, I<565 Sa6/s, s6  T5d< Sa6/s, />5/45< -/4 L. D5 Ds -56/ / /45 4us5 "a<5lla -4 a><55d / ?uy /45 =a< < ) 1', . 6 /45 u6d5 /4a/ /45 <=5 -uld ?5 ad 6ly a/5< /45 =a< 4ad ?556 <5>s/5<5d 6 4s 6a05. (=56/5 "a<5lla sad /4a/ /45 a0u6/ 45 4ad 6 4a6d /456 -as s4>5d  / ?5 all-5d / s5=u<5 /45 s45 <0 45< ss/5< sus5dly lv6> s05-45<5 6 A;=a<a S/<55/, als 6 "a6la. "a<5lla <5:u5s/5d /45 <5>s/ /45 >d a/4  "a<5lla, I<65 Sa6/s 4a6d5d v5< /45 <5>s/=, /45 45ad  /45 )4l65 C6s/a?ulaa6s/ Ca/a6 Raa5l #ada6>=, /45 45ad  /45 )4l65 C6s/a?ula -65a/6, 4-5v5<, T5d< Sa6/s 0v5d a6d -as all-5d / 6/5
B5/-556 T5d< Sa6/s a6d /45 la6/a5lla6/, $s5 B. A;6a<, -4 4as a ?5//5< <>4/ / /45 ss5ss6  /45 dsu/5d au/0?l5M Held:

*6d5< A4/s v5< <54/s / /45 / /45 sa05 G6;al5s v. Rjas, 1 )4l. +1 O=5j, )5<5; a6d C. v. I6/5<6a/6al Ba6@,  )4l. 1, Fd5l/y a6d D5s/ C. v. 7ls6, 8 )4l. +1 Ku56;l5 & S/<5 v. 7a=@5 & C4a6dl5<, 1' )4l. 1 Eas/6 v. Da; C., 2 )4l. 18. I6 /45 =as5 6 4a6d, /45 =a< 6 :u5s/6 -as 65v5< d5lv5<5d / /45 v56d55 ?y /45 v56d< as / =0l5/5 < =6su00a/5 /45 / /45 sa05  -4l5 / -as 6 /45 =us/dy  /45 la//5<s s6.

11

LLB 2A 

81. L*%ON BROKERAGE CO., INC. (S. "#ERS B*ILDING CO. INC. G.R. N. L2+88+ $a6ua
O<>6ally, /4s =as5 s/5005d <0 /45 d5=s6  /45 Cu C. s 6ly 56//l5d / <5=5v5 /45 <56/als, 6/5< ala, d5s/5  ?<5a=4  =6/ C. I/ s u6dsu/5d /4a/ "y5 C., I6=., -65<  /4<55 a<=5ls  la6d 6 /45 C/y  "a6la, />5/45< -/4 /45 0<v5056/s /45<56, 56/5<5d 6/ a =6/ C., I6=., la/5< @6-6 as "a</05 Buld6> C., I6=., -45<5?y /45 <05< sld /45 sa05 / /45 la//5< < )1,,., )4l65 =u<<56=y. T45y a><55d /4a/ 6 =as5  alu<5 6 /45 a4/ / <556/5< /45 <5 C., d5aul/5d 6 ay056/. I6 a=/, / al5d / ay /45 06/4ly 6s/all056/ =<<5s6d6> / /45 06/4  "a<=4 191, < -4=4 /45 (=5)<5sd56/, G5<>5 S=45dl5<,  /45 "a</05 Buld6> C., I6=., -</5 a l5//5< / /45 )<5sd56/  "y5 < a 0 d=ul/5s 6 =665=/6 -/4 /45 5 C., I6=. d50a6d5d u6 Lu;6 B<@55 C., I6=. / -40 /45 "a</05 Buld6> C., I6=. l5as5d /45 <55 C., I6=. u6d /s5l 6 a ay056/ / /45 -<6> aa6s/ /45 "a</05 Buld6> C., I6=. Issues:

1. 745/45< < 6/ /45<5 4as ?556 6 ?<5a=4  =6/ /4a/ /45<5 -as 65, "y5 /  jud=al <=5ssM 2. 74 s 56//l5d / /45 <56/alsM Held:

1. 75ll s5//l5d s, 4-5v5<, /45 4/  ss5ss6  /45 <50s5s 65=5ssa<ly 56d5d /s <>4/ / /45 <56/als all6> du5 /45<5a/5<. I6 a6y 5v56/, Lu;6s du?/s  -5<5 ><u6d5d u6d5< /45 la- a6d /45 ju<s
12

LLB 2A 

82. ENRI3*E% DE LA CA(ADA, (S. ANTONIO DIA% G.R. N. L118  )4l. 982

 A<l 1, 1918

Facts:

T4s =as5 <5:u<5s /45 ulll056/  a =6/  1 a6d dd 45=/a<5s. Bu/ su=4 sal5 -as su?j5=/ / /45 a<val a6d ssua6=5  a T<<56s //l5 ?y /45 >v5<6056/ < -4=4 E6<:u5; -ll ay Da; /45 su0  /4666> -/4 /45 da/5  u<=4as5. S6 a/5< /45 55=u/6  sad =6/s/ <5>s/s/5<5d a6d a =5 / =0ly -/4 /45 /5<0s  sad =6/J 6=lud5d 6ly 1 45=/a<5s, 0<5 < l5ss,  sad J4a=56da,J a6d /4a/ ?y 5<6> / =6v5y / /45 la6/ a 
 74s5 /45
Held:

T45 l-5< =uJ a6d 6/ a sal5  a a056/ <5:u<6> /45 d556da6/ / =0ly -/4 /45 /5<0s  /45 =6/ / /45 la6/, ?y <5< d55ds  =6v5ya6=5, all sad J4a=56da,J < / ay 6 l5u /45<5 /45 su0  )2, da0a>5s, />5/45< -/4  5< =56/ 6/5<5s/ <0 /45 da/5 u6 -4=4 sad =6v5ya6=5 s4uld 4av5 ?556 0ad5.

1

LLB 2A 

$*G*ILON, "ARIA RONA ". 8. NICOLAS SANC!E% (S. SE(ERINA RIGOS G.R. N. L2+'9'

$u65 1', 192

FACTS:

N=las Sa6=45; a6d S5v5<6a R>s 55=u/5d a6 6s/s a><55d, <0s5d a6d =00//5d / s5ll / Sa6=45; a a<=5l   la6d -/46 /- 2 y5a /4a/ sad /6 s4all ?5 d5505d /5<06a/5d a6d 5las5d  Sa6=45; s4all al / 55<=s5 4s <>4/ / ?uy /45 <5s, 6 "a<=4 12, 19, /45 <05< d5s/5d sad a0u6/  -/4 /45 Cua6s/ /45 la//5< /45 <5s56/ a=/6, < s5== 5<<0a6=5 a6d da0a>5s. R>s =6/56d5d /4a/ /45 =6/ u6su5d 6 4s =0la6/ /4a/, ?y v<55d a6d =00//5d / s5llJ a6d J/45 la6/ a><55d a6d =00//5d / ?uyJ /45 la6d d5s=<?5d 6 /45 /6. T45 l-5< =u056/ 6 av<  Sa6=45; a6d s / a==5/ /45 su0 Sa6=45; jud=ally  =6s>65d, a6d / 55=u/5 6 4s av< /45 <5:us/5 d55d  =6v5ya6=5. ISSUE:

 745/45< < 6/ /45<5 -as a =6/
T45 Su<505 Cua/6 / u<=4as5 R>s <5s Ja><55d, <0s5d a6d =00//5dJ 45 6 /45 =6/<55056/, <0s5 a6d u6d5 s suly, -/4d 6/=5  /s -/4d
1'

LLB 2A 

8'. E*SEBIO S. "ILLAR (S. DOROTEO NADRES G.R. N. '89

 Au>us/ 11, 19'

FACTS:

 A jud>056/ 4av6> ?556 s5=u<5d ?y la6/ Eus5? S. "lla< 6 /45 jus/=5  /45 5a=5 =ua6s/ d556da6/ D</5 Nad<5s < /45 su0  )++8.1', /45 <v6=al s45<, u6> / sad d556da6/ a6d la6/ -as /45 4>45s/ ?dd5< < /45 0u6/  /45 jud>056/. D556da6/ al5d / <5d550 /45 <5056/ d556da6/ 6/5<s5d /45 <5s56/ a5al. ISSUE:

 745/45< < 6/ /45<5 -as a6 0l5d 5/56s6  /45 5<d < /45 <>4/  <5d50/6 s6=5 /4a/ 5/56s6 4as 6/ ?556 d5/5<065d /456 ?y ?/4 a
T4s =6/56/6 s 6/ ?<65 u/ ?y /45 a=/s u6d ?y /45 /<al =uav5 d556da6/ a s5=6d /6 / 5<5 6 A<l , 198. T45<5 s 6/46> 6 /45 d5=s6 / s4- /4a/ a6 6d56/5 5/56s6  /05 4as 5v5< ?556 >v56 0l5dly /45 d556da6/. Fuv56 /45 d556da6/ -as < 65 y5a<, a6d -456 < 0<5 /4a6 /4<55 y5a5  /45 5<d  >v56 40, la6/ -as 0<5 /4a6 jus/5d 6 /5<06a/6> su=4 5<d  >v56 /45 d556da6/, 6 =6sd5
1+

LLB 2A 

8+. $. F. 7RIG!T (S. LA CO")AIA DE TRAN(IAS G.R. N. 229

Nv50?5< 1, 19+

FACTS:

O6 A<l 191, 7al/5< F//6, as 65  /45 a /5<0s a6d =6d/6s, /4a/, F//6 ?6ds 40s5l / a=:u<5 /- /4ua5, < a6y <5as6,  /45 /-/44/ 6 /45 s5=u</y d5s/5d. T45 day a/5< /45 /- 06/4s 4ad 5<5s, R5y5s 6/5d F//6 < /45 s5=6d /05 6 -</6> /4a/ /45 6u0?5<  s/=@s a6d =5dulas -5<5 d5s/5d al<5ady a/ 4s dss/6. F//6 -</5 a l5//5< / R5y5s as@6> < a6 5/56s6  /05  ay056/. T45 Ad06s/
 745/45< < 6/ F//6Hs alu<5 / ?uy /45 s/=@ d556d u6 /45 -ll  /45 s/=@4ld5
HELD:

T45 Cuv5<6 /4a/  /45 <5as6 -4y F//6 dd 6/ ?uy /45 s/=@ dd 6/ d556d u6 /45 -ll  /45 s/=@4ld5
1

LLB 2A 

8. "E#ER & CO. (S. #ANCO G. R. N. 12

S5/50?5< 18, 1918

FACTS:

 A sal5  5>4/y 8 d<55d ?5/-556 B546, "5y5< a6d C. a6d T5d< #a6=. T45 05<=4a6ds5 -as s45d <0 N5- #<@ / "a6la. !-5v5<, /45 s4 =a< /45 =a<> -as d5/a65d a/ )56a6> a6d /45 s5v56/y65 1  /45 5>4/y 8 d= als <5us5d / a==5/ /45 665 9 <50a66> a6d als <5us5d / a==5/ /45 5<  B546 05y5< / 4av5 /45 <du=/s su?s//u/5d -/4 /45< 05<=4a6ds5, -4=4 4-5v5< -5<5 d5<56/ <0 -4a/ -as  < da0a>5s < all5>5d ?<5a=4  =6/
 745/45< < 6/ B546, "5y5< a6d C. s4uld ?5a< /45 ?u
T45 Cu
he facts sho! that the contract pro"ided for #c.i.f. 'anila, pagadero against deli"er1 of  documents.+ his "ie! is corroborated b1 the facts. he goods !ere not shipped nor cons >65d

<0 N5- #<@ / la6/. T45 la=5  d5lv5ally 5=us5d d5aul/ 6 d5lv56> / /45 5ss56=5  /45 =6/ s4-6 / ?5 0ss?l5, s <5l5v5d  4s ?l>a/6. T45<5 /4us ?56> su=56/ ><u6d < <5s=ss6, /45 d556da6/ s 6/ la?l5.

1

LLB 2A 

8. LOT!AR F. ENGEL (S. "ARIANO (ELASCO AND CO. G.R. N. Ns. L21+121+ D5=50?5< 29, 192' FACTS:

)la6/s -5<5 55 s/<5 6 "a6la -45<5 >5655 s=al5. I6 192 =005<=al <5la/6s -5<5 5s/a?ls45d ?5/-556 /45 la6/s a6d /45 d556da6/, a6d 6 /45 su==55d6> /4<55  06/4s /45 d556da6/ s56/ / /45 la6/s 6u05<us ds d5s<5d, a6d -uld /45<5u6 s56d a =a?l5> /450 / ?uy a6d 4ld s5=5d :ual/5s  >ds 6 /45 a0u6/ a6d a/ /45 <=5s s/a/5d. D556da6/ -uld dsa/=4 ?y 0al 0<5 5/56d5d 6s/ /45 =a?l5>v6> su=4 /45< adv=5 as -as d5s /45 d556da6/s -<//56  6 /45 0a6 / /45 /5<0s s5=5d 6 /45 <5vus =00u6=a/6s ?5/-556 /45 la6/s a6d /45 d556da6/. As a <5sul/  /4s <=5du<5 /45 la6/s ?5=a05 d<5=/ly ?l>a/5d / /45 0a6ua=/u<5< -4 <du=5d /45 >ds, -4l5 /45 d556da6/ ?5=a05 ?l>a/5d / /45 la6/s, assu06> /4a/ all =6d/6s 5ss56/al / /45 =<5a/6  la?l/y 4ad ?556 ulll5d. T45 la6/s <=55d u6 /45 d5a  ?<5a=4  =6/ds =v5<5d ?y /45  >565a/6s  /45 =0la6/s a6d s5//6>  /45 < /45 /<al jud>5 a?slv5d /45 la6/s <0 /45 d556da6/s =u6/5<=la0s a6d =<ss =0la6/ a6d >av5 jud>056/ < /45 la6/s / <5=v5<  /45 d556da6/ /45 su0  )1+2,21.', -/4 6/5<5s/ a/ s 5< =56/u0, / ?5 =al=ula/5d u6 d5<56/ 056/ /45 d556da6/ a5al5d. ISSUE:

 745/45< < 6/ /45 =<<5s6d56=5 =6du=/5d ?y =a?l5 a<5 ad0ss?l5 a>a6s/ /45 d556da6/. HELD: he pro"ision, #elegraphic correspondence shall onl1 be the basis  a6 ?l>a/6

 ?5/-556 =6/ a6s -4=4 0ay  4av5 ?556 <5vusly 5d a6d a><55d / ?y /45 =6 tracting parties,+ this pro"ision !as in force a/ /45 /05 all  /45 a/6 -5<5 >v56, a6d / s /45<5<5 6ss/5d /4a/ /45 05ssa>5s /a6s/ /45 d556da6/. I6 /4s =665=/6 /  -ll ?5 6/5d /4a/ 6 << -<//56 a><55056/ s 6 5vd56=5 ?y -4=4 /45 a4 / s / 56/<5ly <0 /45 =as5 s 0u=4  /45 =<<5s6d56=5 as -as =6du=/5d ?y =a?l5. *6 5a066> /45 d=u056/a /s 
LLB 2A 

T45<5 s 6/46> 6 /45 <vs6 :u/5d <0 a a><55056/s 55=/5d ?y /5l5><55056/ u6d5< /45 <vs6 :u/5d. Fu 6/=a/6  a=/s d65 =uld 6/ ?5 >6<5d, -45<5 /45 ?ass  a =6/ a<usly 6ss/6> u6 /45 5l06a/6  /45 /5l5>565 ?5/-556 /45 ads a/6s, ?u/ -456 =6<6/5d -/4 /45 65=5ss/y  ds46<6> /45 
19

LLB 2A 

$*LKARNAIN, N*R A. 88. )ACIFIC CO""ERCIAL CO")AN# (S. ER"ITA "ARKET & COLD STORES, INC., G.R. N. L'2 + )4l. 1

"a<=4 9, 192

Facts:

O6 S5/50?5< 1', 192, /45 )a== C005<=al C., /45 la6/ 45<56, sld / /45 E<0/a "a<@5/ & Cld S/<5s, I6=., /45 d556da6/ 45<56, a6 au/0a/= <5<>5 0a=465. T45 a65d /45 usual <6/5d sal5s=6/<55056/, /45 sad 0a=465 -as 6s/all5d ?y /45 la6/, / ?5 ad ?y /45 d556da6/, 6 av<  /45 la6/. C0ly6> -/4 /45 /5<0s  /45 sal5s =6/ a ?ala6=5.  A 5- days a/5< 6s/alla/6, /45 d556da6/ advs5d /45 la6/ /4a/ /45 0a=465 -as 6/ s5 /45 u<s5 < -4=4 / -as sld a6d /4a/ / -as la=@6> a006a <5=5v5< a6d l s5a5s /4a/ /45 /5055 <0s dd 6/ <5a=4, a6d 4ad 65v5< <5a=45d, -6> / /45 65>l>56=5  /45 la6/ 6 6/ <5a<6> < u//6> 6 >d  -<@6> =6d/6 /45 sad <5<>5 0a=465, /45 d556da6/ 4ad ?556 <=5d / =ls5 /s 5s/a?ls4056/ a6d < -4=4 <5as6 /45 d556da6/ =la05d da0a>5s a>a6s/ /45 la6/. T45 la6/ d565d >565a/6 6 /45 sad =<ss=0la6/ a6d ?y -ay  s5=al d556s5, all5>5d /4a/ -4a/5v5< d55=/s < d5=56=y  /45<5 0>4/ 4av5 ?556 6 /45 /5055 <0s  d556da6/s 5s/a?ls4056/, < 6 /45 u6=/66>  /45 0a=465, /45s5 -5<5 du5 / /45 d55=/s a6d 05<5=/6s  /45 =ls -4=4 -5<5 sul5d a6d 6s/all5d ?y /45 d556da6/ /s5l, as -5ll as / /45 6=05/56=y a6d 65=56=y  /45 d556da6/s 5056/,  /45 d556da6/ / ay /45 <50a66> a0u6/ lus 6/5<5s/ a6d /45< da0a>5s, s, /45 d556da6/ a5al5d. Issue:

 745/45< < 6/ /45 6s/all5d <5<>5<55d u6  ?y /45 la6/ a6d /45 d556da6/ Held:

T45 jud>056/  /45 Cu55 <0s, ?u/ / s

11

LLB 2A 

5vd56/ /4a/ /45 0a=465 =uld 6/ 55 <0s -4=4 / 55=/5d / 0a6/a6 a/ /4<55 d5<56/ /5055. I6 /45 l5 =0?65d 5=5 6 /45 0a=465.

111

LLB 2A 

112

LLB 2A 

89. (ILLONCO REALT# (S. BOR"A!ECO, INC., G.R. N. L282 + SCRA +2

$uly 2+, 19+

Facts:

C5 Bu56da -45<5 /45 ?uld6>s   B<0a45= I6= -5<5 s/ua/5d. B5sd5 /45< <5/a/6s -/4 (ll6= < sal5  /45 Bu56da <5 /4a/ /45 5a<65s/ 065y -as / 5a<6 1Q 6/5<5s/ .a. T45 =45=@ -as 56=ls5d -/4 /45 <5ly l5//5<. C5 /4a/ 45 -as 6 l6>5< 6/5<5s/5d 6 s5ll6> /45 <5
 745/45< < 6/ /45<5 -as a 5<5=/5d =6/
Held:

 #ES. T45<5 -as a 5<5=/5d =6/5d =4a6>5s 0ad5 6 /45 =u6/5< 5< a<5 00a/5<al a6d a<5 05 re clarifications. he changes of the !ords #ta.
C5a /45 a=:us/6  /45 S/a. A6a <5<u6d < /45 <5usal  C5
11

LLB 2A 

9. (ELASCO (S. CO*RT OF A))EALS G.R. N. L118 +1 SCRA '9

$u65 29, 19

Facts:

O6 Nv50?5< 29, 192, 45<56 5//65<55d / ?uy ?y /45 <05<, a a<=5l   la6d -/4 a6 a<5a  2,+9 s:. 0s. L=a/5d 6 3u5;6 C/y, < a //al u<=4as5 <=5  ) 1,.. )5//655d 45 -as / >v5 a d-6 ay056/  1,. 5ss / ?5 ll-5d ?y  ) 2,. a6d /45 ?ala6=5  ),. / ?5 ad 6 6s/all056/ ?ass, /45 06/4ly  a0<55d u6, s, 5//65< d50a6d5d < da0a>5s a6d s5== 5<<0a6=5 <0 /45 <5s6d56/s  a6 all5>5d d55d   sal5  a a<=5l  la6d <5sd56/al la6d 6 /45< av<. R5s6d56/s d565d /4a/ / 4as 4ad a6y d<5=/d5al6>, 0u=4 l5ss, =6/a /45 <55d =6/ly, <5s6d56/s <5us5d / a==5/ /45 add/6al d-6 ay056/ < / 4ad =6sd5<5d /45  er to sell rescinded on the account of the petitioners‘ failure to pa1 on or before *ecember  1, 192. O6 Nv50?5< , 198, /45 CFI 3u5;6 C/y <56d5<5d a d5=s6 ds0ss6> /45 =0la6/  /45 5//65
1. 745/45< < 6/ /45<5 -as a 5<5=/5d =6/<55056/ 6 0a//5 a6d 56<=5a?l5 =6/
/45 //al d-6 ay056/ s4all ?5 ), ., I6=lud6> /45 )1.. a /45 sad /05 << / /45 =0l5/6  /45 d-6 ay056/  ),. ?y -ay  l5as5 <56/als 6 /45 4us5 eisting thereon !hich !as earlier leased b1 the defendant to the plaintiff‘s sister  6la-, 11'

LLB 2A 

S=<< $. (5las=, a6d -4=4 -5<5 duly ad / /45 d556da6/ ?y =45=@s ddal56a Es/a/5 s/ll 4av5 / 055/ a6d a><55 6 4-  a6d -456 /45 d-6 ay056/ a6d /45 6s/all056/ ay056/s -5<5 / ?5 ad. Su=4 ?56> /45 s/ua/6, / =a66/ ?5 sad /4a/ a d56/5 a6d <0 sal5s a><55056/ ?5/-556 /45 a<55056/ 6 /45 0a665<  ay056/  /45 u<=4as5 s a6 5ss56/al 5l5056/ 6 /45 <0a/6  a ?6d6> a6d 56<=5a?l5 =6/dal56a Es/a/5 /45 su0  )1, . as a<55056/ ?5/-556 /45 a
11+

LLB 2A 

91. S)O*SES DORO"AL, SR. AND SALAS (S. CO*RT OF A))EALS G.R. N. L8  SCRA ++

S5/50?5< +, 19+

Facts:

L/ +'  /45 =adas/6ally d5=<55d 6 /45 6a05   /45 la/5 $us/=5 A6/6 !<ll56, 6 191, u6d5< O<>6al C5 / /45 a=/ /4a/ / -as a = -654/5< "a4/5< a6d 45< 45<56 la6/, Fl056a $av5lla6a, 6 /45 <4 /45< <>4/ <>4/ 4ad 6/ as y5/ ?556 a66/a/5d 6 /45 //l5, /45 =-65<55a?l5, -a6/5d / s5ll /45 56/<5 <5u, . Sl5dad a6d '. F5, 6 "a6daluy6>, R;al, a6d +. Rs/a 6 Basla6 C/y, /45y all 55=u/5d va<us -56a/u<5 ?y  la6/, Fl056a $av5lla6a, a6d s56/ / -/4 a l5//5<  Ca4 05/5<,al/4u>4 / 6- /u<6s u/ a== / E4.  /4a/ as 5a<55d u6 -as v5 )+. 5ss a s:ua<5 05/5<[ 6 a6/45< l5//5< als  Cav56 /45 5a<65s/ 065y   )+,. a/ ). a s:ua<5 05/5<[ A/ a6y a><55a?l5, dd 6/ s>6 /45 -5<  a//<65y, a6d /45 <5s/  /45 =-65 / / /4a/ /45 d55d  sal5 ?y /45< =006 a//<65y 6 a=/, "a65d a6d 65d a6d 4/ / Ill ?y Cas/5<  D55ds   Ill Ill <5us5 <5us5d d / <5>s/ <5>s/5< 5< <>4/ <>4/ a-ay, a-ay, s6=5 s6=5 /45 <>6 <>6al al <5>s/ <5>s/5< 5<5d 5d -65< -65<,, $us/= $us/=55 A6/6 A6/6 !<ll56 -as al<5ady d5ad, Ca a6d 6/=5, /45 5//6 -as a<v5d. 6 29 A<l, 198, Cas/5<  D55ds a6d =aus5d /45 <5>s/ /45 ssua6=5   a 65- //l5 6 /45 6a05  /45 =-65 / /45< 5vd56=5 s/ll ad a6 add/6al a0u6/ 6 =as4 =as4  )18, )18,2+ 2+. .  s6= s6=55 /45 /45 a><5 a><55d 5d <= <=55 -as -as )+. )+.  a s:ua s:ua<5 <5 05/5 05/5<< a6d a6d /4us /4us -as -as =6su00a/5d /45 /as, Ill, la6/ Fl056aHs la-y5<, A//y. A6> -/4 40 45< l5//5<  /4a/ da/5, 0a@6> a <0al 5< / <5u<=4as5 < <5d550 /45  u6dvd5d s4a<5 6 L/ +' < ),. 6 =as4 -4=4 -ll ?5 d5lv5<5d as s6 as /45 =6/
LLB 2A 

6 av<  Fl056a. /45 D<0als -5<5 a>4as/, a6d <5us5d /45 65/ day, 11 $u65, 198, la6/ Fl056a l5d /4s =as5, a6d 6 /45 /<al, /44/ / s4- /4a/ as =-65<, s45 4ad /45 <>4/ / <5d550 a/ /45 <=5 s/a/5d 6 /45 d55d  sal5   ),. ?u/ d556da6/s Sus5s D<0als 6 a6s-5<, a6d 6 /45< 5vd56=5, 4/ / s4- /4a/ la6/ 4ad 6 0<5 <>4/ / <5d550, a6d /4a/  5v5< s45 s4uld 4av5, /4a/ / s4uld ?5a/ /45 /5  la6/ 4ad 6 0<5 <>4/, / <5d550, ?5=aus5 )la6/ -as 6<05d  /45 6/56d5d sal5  /45  s4a<5 ?5l6>6> / /45 !<ll56s. Cu4 <5s6d56/ <5s6d56/ Fl056a $av5lla6a -as 6<05d  45< =-6 =-65< 5J,  /45 a=/ual 55=u/6 a6d <5>s/ d55d  sal5, 456=5, sad <5s6d56/s <>4/ / <5d550 4ad 6/ y5/ 5<5d a/ /45 /05 s45 0ad5 45< 5< < /4a/ u<s5 /4 /4a/ /45 <56d5
 745/45< < < 6/ Fl056aHs Fl056aHs <>4/ / <5d550 <5d550 4ad 5<5d 5<5d

Held:

NO. T45<5 s N s4-6> /4a/ Fl056a -as 6/5d. T45 l5//5 <0 -4=4 /45 day day 5<d 5d 6 sad <vs6 s4uld ?5 =0u/5d. Bu/ / s/a /4a/ sad l5//5 0<5 /4a6 /- 06/4s aa> /4a/ /4a/ /45 /45 l5// l5//5< 54/  <5d50/6 > -4=4 As/5<  d55ds =a6 <5= / /45 /45< =-65s/5<  d55ds < <5>s/
11

LLB 2A 

92. ELIAS GALLAR (S. !ER"ENEGILDA !*SAIN, ET AL. G.R. N. L29+' 2 SCRA 18

"ay 2', 19

Facts:

!usa6s 6 /4s =as5 a<5 /45 454/ / <5u<=4as5 -/46  y5a4/ / 4s ss/5<, G5/45< -/4 /45 -65<s dul=a/5  /45 =5lda a6d B6a= B6a= !usa6, !usa6, as 455/ a /5s. T45 !usa6s =u6/5<5d  ?y say6> /4a/ G
1. 745/45< < 6/ -65
Held:

1. #ES, #ES, -65< -654/ <>4/  <5u<=4 <5u<=4as5 as5 0ay ?5 55<=s5d 6ly ?y /45 v56d< 6 -40 /45 <>4/ s <5=>6;5d ?y =6/4/ <>4/ 0ay 4av5 ?556 ?556 /4/, su?j5=/ 6ly / T5d< !usa6s <>4/  <5d50/6. <5d50/6. As /45 65- -65< s45 4ad a 5<5=/ <>4/ / dss5  /45 la6d as s45 6 a=/ dd -456 s45 5=4a6>5d / < =a//l5 -/4 Galla<. 2. NO, /45 a=/6 s 0<5s=< 0<5s=</ /?l5. ?l5. T4s a=/6 s 6/ < s5== s5== 5<<0a6 5<<0a6=5 =5 all / s55@s s / :u5/ //l5, / <50v5 /45 =lud =as/ 6 a5ll55s -65 <5=>6; 6;55 /45 sal5 sal5 0ad5 0ad5 ?y /45< /45< <5d5 <5d5=5s =5ss< s<.. A6d, A6d, as la6/ la6/ a a5 5ll5 ll555 s 6 ss5ss6  /45 la6d, /45 a=/6 s 0<5s=</?l5. A5lla6/s a<>u056/ /4a/ /45 a=/6 4as <5s=<?5d -uld ?5 =<<5=/  /45y -5<5 6 ss5ss6 as /45 a=/6 / :u5/ //l5 -uld /456 ?5 a6 a=/6 < <5=v54/ -/46 /45 s/a/u/v5<66> su=4 a=/6s.

118

LLB 2A 

KA"LIAN, LIE%LE S. 9. G*%"AN (S. G*IEB G.R. N. L2882 '8 SCRA 8

Nv50?5< 2', 192

FACTS:

T4a/ 6 S5/50?5< 1+, 19' d556da6/ l5d Cvl Cas5 N. 121 6 /45 C/y Cua6s/ /45 la6/s < s5== 5<<0a6=5 -/4 =6s>6a/6, -4=4 =as5 s 6-  56d6> 56d6> /<al ?5<5 B<55056/ a><55056/ /4a/ /45 sad =as5 ?5 45ld 6 a?5ya6=5 56d6> a 6al d5=s6 6 /45 6s/a6/ =as5. As s4- 6 O=al R5=5/ N. '81I, da/5d S5/50?5< 1+,19+ ssu5d ?y /45 T<5asu<5<  "a6la, 4/sa/= =y   !hich is hereto attached and made part hereof as Ahibit #23+ for the defendants, defendants, defendants

duly =6s>65d -/4 /45 C/y Cu >u5 u5;; <5u <5us5 s5d d / a==5 a==5/ / -456 -456 / -as -as /56d /56d5< 5<5d 5d / 45< 45< 6 $uly $uly 1,1 1,19 9' ' ?y  d556da6/s T4a/ 6 O=/?5< 22,19', /45 la6/ L56 d5 Gu;0a6 l5d a6 5j5=/056/ =as5 a>a6s/ /45 d556da6/s 45<56 6 /45 C/y Cuus/ 19', Cvl Cas5 N. 12812 -4=4 =as5 s als 56d6>, a-a/6> a 6al d5=s6 6 /45 6s/a6/ =as5 T4a/ la6/s < /45< <5d5=5ss< 6 6/5<5s/ -5<5 65v5< 6 a=/ual 4ys=al ss5ss6  /45 <5a/6. ISSUE:

 745/45< /45 /6 / u<=4as5 u<=4as5 <5al <54/ / 55<=s5 /45 /6 / u<=4as5 <5al <5us45d. HELD: #&ption to Purchase Real Propert1+ dated &ctober 4,F4F cannot be considered as a rene!al of the first #&ption dated o"ember 20,F49+ as the same is not d uly a=@6-l5d>5 before a notar1 public and not signed in the presence of !itnesses+ and because if it !ere such as rene!al,+ it should ha"e been eecuted on o"ember 2F,F4F, the date of the epirationB of  the the  /4a/ / s a

<565-al. I/ s ?vus /4a/ /4s s/u<5 s -/4u/ 05</. T ?5 55=/v5 s a6 /6, /45<5 -as 6 655d a/ all /4a/ /45 d=u056/  O=/?5< +, 19+9 ?5 a <565-al  /45 56u65, as v5<55056/ u6d5< A a/ l5as/ a 6/5 < 050,  /45 a><55056/ a><55056/  /45 a65d ?y /45 a5d, 6 /4s =as5, T5d< d5 Gu;0a6, /45 )<5d5=5ss< 6 6/5<5s/  a5lla6/s. S5=6dly, 6 55=/, /45 =6/56/6  a5lla6/s s /4a/ /45 alu<5  a5ll55s / ay /45 s/ula/5d <56/als < l6> 5<ds, a <vs6  /45 /6 a><55056/, E4?/ 1.

119

LLB 2A 

9'. B*CTON (S. GABAR  G.R. N. L+9 ++ SCRA '99

$a6ua
FACTS:

$s56a ?u>4/ a a<=5l  la6d <0 (lla<6. By v5<55056/, $s56a sld a X  -/4 45< sus5, /@  ss5ss6  /45 l/ a6d ?ul/ /45< 4us5 as -5ll as aa D55d  Sal5 / N=a6
 7ON /45<5 -as a sal5 ?5/-556 $s56a a6d N=a6
HELD:

 #ES. Assu06> /4a/ a/ /45 /05 -456 $s56a sld /45 l/ / N=a64 /45 sal5 ?5/-556 $s56a a6d N=a6 /4a/ N=a6  //l5, -4=4 s 0<5s=</?l5 s l6> as /45 la6/ s 6 ss5ss6  /45 l/.

12

LLB 2A 

9+. CARBONELL (S. CO*RT OF A))EALS G.R. N. L2992 9 SCRA 99

$a6ua
FACTS:

)6=, a Ba/a65s 6a/v5, -65d a a<=5l  la6d, -4=4 45 5<5d / s5ll / Caa>5d / R5u?l= Ba6@. )6= a6d Ca5< <=55d -/4 /45 sal5 as 45 4ad al<5ady sld /45 sa05 / I6a6/5 < a ?5//5< <=5. Ca4/ / <5>s/5< adv5s/5<5d /45 sal5 -/4 /45 adv56=a6/ 0<v5056/s 6 /45 <5
 74 4as a ?5//5< //l5, Ca
Held:

Cas/5< /45 <5d a/4. I/ s a <5=6d/6 / a su5<< //l5. I6 /4s =as5, I6a6/5 -as 6/ 6 >d a/4, /4us /45 << sal5 / Cas/5<5d 45< =la0 ' days a/5< /45 adv5s/5<5d, s45 4ad 6/=5 /4a/ Caa>5 d5?/ as /45 0a>5 ass?@ -as al<5ady 6 4s ss5ss6. S45 l@5-s5 >6<5d Ca5s  ?ad a/4 /4a/ /a6/ 45< <5>s/
121

LLB 2A 

9. T!E BOARD OF LI3*IDATORS (S. $OSE ROAS G.R. N. 8''19 19 SCRA 89

D5=50?5< ', 1989

Facts:

O6 A<l 12, 19', )DCI 56/5<5d 6/ a 0a6a>5056/ =6/<55d / 6a6=5 /45 =6s/5056/ a6d 5av5 la6s a6d adva6=5s 65=5ssaa>5 6 all /s <5 /45 <5v56 as =lla/56> / "a<a Ras Lsa a6d =v5<5d ?y TCT N. RO'1 1921  /45 R5>s/5<  D55ds  Ca;, -4=4 =6/a6s a6 a66/a/6 s/a/6> /4a/ /45 sa05  -as /65d 6 av<  )DCI a6d 0a>5d / NF)C. Sad <>6al =5<55d / ay /45 Baa>5 ?l>a/6. )5//65< Ba<55d / asss/ )DCI 6 5j5=/6> /45 s:ua//5 /45 <5
 7456 /45<5 -as a vald =6v5ya6=5  /45 su?j5=/ 0a//5< ?y "a<a / 45< ?</45
T4us, s6=5 -4a/ a5a5< 45< <5a>5d ?y )DCI / /45 NF)C -4 s =5a>55 6 >d a/4. Fu5d v5
122

LLB 2A 

9. SOSTENES CA")ILLO (S. )!ILI))INE NATIONAL BANK  G.R. N. L1989 28 SCRA 22

"ay 21, 199

Facts:

 A/5< <5=5v6> /45 d55d  6al sal5, a5ll55 <5s56/5d / < <5>s/s/5<  D55ds  )asay C/y 6 A<l 18, 191. As 6 /4s =665=/6 45 -as <5:u<5d / =0ly -/4 /45 <vs6s  S5=/6 8  A=/ '9, 6 A<l 28, 191 45 l5d 6 /45 Cu -/4 <5vus 6/=5 s5s/5<  D55ds  sad =/y, /45 Cu /45 la//5< / =a6=5l T.C.T. N. 2A a6d / ssu5 6 l5u /45<5 a6/45< =5a>5 56=u0? C5a/5 /45 s/a/us   sad <5 /45 <5 /45 0a>5. Issue:

 7ON la6/s <5/56s6s  assu0/6  /45 d556da6/Hs 0a>5 a<5 6/ vald.  7ON /45 sal5  <5al 5s/a/5, 0ad5 as a <5sul/  a <va/5 /ally 55=/v5 a>a6s/ /4
I/ s a6 ad0//5d a=/ /4a/ /45 5/s/5<5d 6 /45 O=5  /45 R5>s/5<  D55ds  )asay C/y 6ly 6  A<l 21, 19. I/ s s5//l5d 6 /4s ju<sd=/6 /4a/ a sal5  <5al 5s/a/5, -45/45< 0ad5 as a <5sul/  a <va/5 /ally 55=/v5 a>a6s/ /4s/s/5<5d 6 /45 sa05 da/5, /45 <5v5<6056/ s/ll as <54/s, 6/5<5s/ a6d as/5<5d a6d a66/a/5d 6 /45 ?a=@  C5us/ , 19+ (a<>as vs. Ta6== 8 )4l65 E5=u/v5 C00ss6 vs. A?adlla '8.

12

LLB 2A 

L*"ABAS, RA"EL ". 98. E*LOGIO RODRIG*E%, SR. (S. SOFRONIO FRANCISCO G.R. N. L129 2 SCRA '8

$u65 , 191

Facts:

T4s s a6 A5al <0 /45 d5=s6  /45 Cus/5<5d -65<  /45 la6d 6 :u5s/6 u6d5< O<>6al C5 /45 la6d 6 av<   d556da6/ "a0 F6al C5ua Rd<>u5;, S<., s /4a/ 6 /4a/ da/5 E5:u5l A0l 55=u/5d a d=u056/ 56//l5d J(56/a C6d=6alJ. T45 d55d -as duly <5>s/5<5d 6 /45 =5  /45 R5>s/5<  D55ds 6 Nv50?5< 1+, 19. T4s d55d =6v5y5d /45 la6d />5/45< -/4 s05 /45< a<=5l / la6/ ?y a =6d/6al sal5, /45 =6v5ya6=5 / ?5 a?slu/5 u6 /45 ulll056/  =5 -656al <5>s/s 6 /45 Cu, /45 =us/5<  D55ds  R;al =a6=5ll5d O<>6al C5
 745/45< < 6/ /45 u?l= d=u056/ 56//l5d JCONTRATO DE (ENTA CONDICIONALJ s a d55d  5:u/a?l5 0a>5. Held:

N. T45 <vs6s  /45 d55d  sal5 6 :u5s/6 0ay ?5 su00a<;5d as ll-s /4a/ /45 v56d< sld / /45 v56d55 /45 <5al <5a/6 assu05d ?y  /45 v56d55  / ay -4a/ /45 v56d< -5d / s5v5 a6y /45< d55d  =6v5ya6=5. C6sd5<6> /45 <vs6s  /45 a><55056/, -5 a><55 -/4 /45 /<al =ua>5  ?u/ 6s/5ad / 0a@5s a =6d/6al /<55d u6, 6a05ly, ay056/ ?y /45 v56d55  -4a/ /45 v56d< -5d /45 a
12'

LLB 2A 

99. "ANOTOK REALT#, INC., (S. CO*RT OF A))EALS AND FELI)E CARILLO G.R. N. L9'' 1'8 SCRA 1'

$a6ua
Facts:

!5<56 a5ll55 "ANOTOK REALT#, INC. s /45 <5>s/5<5d -65<  /45 l/ 6 dsu/5. I/ a=:u<5d /45 a<5056/65d <5 d5 L5>a /45 4>45s/ ?dd5< 6 a sal5 =6du=/5d ?y /45 )<?a/5 Cu a=:u<5d sad <5 -4=4 s /45 65 ?5l6>6> / /45 45<56 a5lla6/ F5l5 Ca<ll. D50a6ds / va=a/5 a6d / su<<56d5< ss5ss6  /45 <5u5s /4a/ 45 a=:u<5d /45 l/ 6 dsu/5 <0 a =56056/ /4a/ Day</ 6 /u<6 4ad a=:u<5d /45 <5 ?y   vusly ad /45 06/4ly  6s/all056/s as /45y 5ll du5, 4s las/ ay056/ ?56> 6 "ay 2+, 19+', /456 l5av6> a6 u6ad  ?ala6=5 -456 /45 sad a<=5l -as =6v5y5d / d556da6/ Ca<ll, < -4=4 <5=5/s -5<5 duly  ssu5d /4a/ Day</ =uld 6/ =6/6u5 ay6> /45 su==55d6> 6s/all056/s as /45y 56 du5  ?5=aus5 (=56/5 L5>a sus5  Cla, <5us5d / <5=5v5 a6y  ay056/ < /45 sa05 a6d /4a/ / -as 6ly 6 S5/50?5< 2+, 192, -456 Day</ =6v5y5d /45 l/ / a5lla6/ Ca<ll. A/5< /45 5//65< al5d 6 /s a//50/s / /a@5 ss5ss6  /45 l/, / l5d /45 <5v6d=a/a6s/ /45 <5s6d56/. T45 /<al =u
 745/45< < 6/ a5lla6/ 0ay ?5 =6sd5<5d as a ss5ss< 6 >d a/4  /45 <5
N. I6 /4s =as5, / -as s4-6 /4a/ u6d5< /45 =6/ a6 u6ad ?ala6=5  ),8.2 as  Au>us/ 9, 19+'. T45 sad =6/<55d u6, / s 45<5?y a><55d /4a/ sad u<=4as5<  -ll ?5 >v56 a 0a0u0 l0/  /- 06/4s >6al -65< 45<5 /45 Cla Su?dvs6,.J T45 su?s5:u56/ 6s/all056/ a/5< Au>us/ 9, 19+', 6/ 4av6> ?556 ad, /45 <5 a6d /45<5<5 <05d aus/ 2+, 192< 5>4/ 8 y5a4/ v5< /45 sa05. A u<=4as5< =a66/ =ls5 4s 5y5s / a=/s -4=4 s4uld u/ a <5as6a?l5 0a6 u6 4s >uad a/4 u6d5< /45 ?54al /4a/ /45<5 -as 6 d55=/ 6 /45 //l5  /45 v56d< L5u6> #55 v. S/<6> "a=465d a/4 a6d s 6/, /45<5<5, 56//l5d / <50?u
12+

LLB 2A 

1. BRA*LIO CASTILLO, ET AL. (S. SI")LICIA NAGTALON G.R. N. L19 ' SCRA '8

$a6ua
Facts:

O6 Nv50?5< 11, 19+2, Cu056/ d5=la<6> /45 la6/s B4/ / ss5ss / a6d /4a/ /45 d556da6/s a<5 5s 6 /45 a0u6/   )21. 5v5a6s/ /45 d556da6/sa5lla6/s /45<56. T45 d5=s6 4av6> ?5=05 6al, a -</  55=u/6 -as ssu5d a>a6s/ all /45 d556da6/s, / sa/sy /45 da0a>5s a6d =s/s a-a5/45< -/4 /45 556s5s 6=d56/al / su=4 55=u/6, a0u6/5d / ),'1.. C6s5:u56/ly, /56 a<=5ls  la6d, /4<55  -4=4 ?5l6>5d 5=lusv5ly / 45<56 a5ll55 S0l=a Na>/al6, 65  /45 d556da6/s, -5<5 l5v5d u6 a6d sld < ),'1. a/ /45 55=u/6 sal5 =6du=/5d 6 $uly 8, 19+. O6 $uly 8, 19+8, /45 las/ day  /45 65y5a< 5<d < <5d50/6, a5ll55 S0l=a Na>/al6 d5s/5d -/4 /45 D5u/y )<v6=al S45< /45 su0  )1.'' <5<5s56/6> 112   /45 =6sd5 d55d  <5d50/6 as / /45 /4<55 a<=5ls  la6d ?5l6>6> / 45<. T45 u<=4as5< s5d /45 sa05 6 /45 ><u6d /4a/ /45 a0u6/ /4us /56d5<5d dd 6/ =v5< /45 ull <5d50/6 <=5  /45 sad /4<55 a<=5ls  la6d -4=4 -5<5 au=/65d s5a/al6 l5d a 0/6 -/4 /45 =uus/ 2, 19+8, /45 =u 6 sad 0/6, ssu5d a6  /4a/ /45 la?l/y  /45 d556da6/s, as a5a<6> 6 /45 dss/v5 a/al6  /45 su0 =<<5s6d6> / 112  /45 u<=4as5 <=5 -as su=56/ / <5d550 45< <5/al6 /45 =5 /45 /4<55 a<=5ls  la6d -65d ?y 45<. T45 u<=4as5<s a6d /45 S45<s 0/6 < <5=6sd5 ?556 d565d, /45y 6s//u/5d /45 6s/a6/ a5al. Issue:

 745/45< < 6/ /45 l-5< =u 0va6/s /56d5<  /45 su0  )1.'' as vald <5d50/6  /45 /4<55 a<=5ls  la6d -65d ?y 45<, a6d 6  /45 ssua6=5  /45 =<<5s6d6> =5
N. T45 <=5du<5 < /45 <5d50/6  /45 <5056/ d5?/< < <5d50/65< 0ay <5d550 /45 <5 /45 u<=4as5< /45 a0u6/  4s u<=4as5, -/4 1Q 5< 06/4 6/5<5s/ /45<56 u / /45 /05  <5d50/6, />5/45< -/4 /45 /a5s ad ?y /45 u<=4as5< a/5< /45 u<=4as5,  a6y. I6 /45< -5< /45 jud>056/ d5?/ ?u/ /45 u<=4as5 <=5. C6sd5<6> /4a/ a5ll55 /56d5<5d ay056/ 6ly  /45 su0  )1.'', -45<5as /45 /4<55 a<=5ls  la6d s45 -as s55@6> / <5d550 -5<5 sld < /45 su0s  )1,2'., )21., a6d )., <5s5=/v5ly, /45 a<5056/65d a0u6/   )1.'' s 6su=56/ / 55=/v5ly <5l5as5 /45 <5d a/4 6 /45 6/5<5s/  jus/=5 -5 6=l65 / >v5 /45 a5ll55 12

LLB 2A 


12

LLB 2A 

11. "ARIA "A!IL*", ET AL. (S. CO*RT OF A))EALS G.R. N. L19 1 SCRA '82

$u65 , 19

Facts:

)5d< "a4lu0 -as /45 <5>s/5<5d -65<  a a<=5l  la6d. *6 /45 d5a/4  )5d< "a4lu0 6 19', 45 -as su==55d5d ?y 4s s =4ld<56, 6a05ly, T0as, $ua6, Cl5056/5,  A6/6a, $ula6a a6d T0asa -4 6 "ay 1, 19+, 55=u/5d a Jd55d  d56/5 sal5J 6 av<   G<>6a Fl5d /45 d55d  sal5 ?5<5 N/a6a Fla6 ay6> /45 /a5s /45<5< 6 19. T45 "a4lu0s, 4-5v5<, =la05d /4a/ /45y 65v5< sld a6y  / /450, O<>6al C5056/  45< <>4/  -65 a/ /45 /<al  /4s =as5, 6a05ly, T0asa a6d $ua6. A== / T0asa, 65/45< s45 6< 45< ?</4565d /45 d55d  sal5. A== / /45 la6/, 6ly Cl5056/5 "a4lu0 a5d 4s s>6a/u<5 6 /45 d=u056/, a6d /45y s0ly /4u0? 0a<@5d /45 sa05. $ua6 "a4lu0 all5>5d 6 /45< =0la6/ < JA66ul056/  C6/6a Fl5  /45 ll/5, 6du=5d /450 / s>6 a =5, -4=4 -</6> /45 d556da6/, 6 =6s056/  d5?/  la6/s a/45<, )5d< "a4lu0, ?u/ -4=4 s 6 a=/ a D56/5 C6/  L/ N. 219+ as a<5sad. Issue:

 745/45< < 6/ /45 Cu /4a/ /45 d55d  sal5 s 6ad0ss?l5 6 5vd56=5 ?5=aus5 / la=@s /45 65=5ssa
N. T45 s/a0s <55<<5d / ?y 5//656al < aulaula<, a6d /4a/ /45 <5>ula< =u <. T45 d5=s6  /45 Cua6s/ 5//65
128

LLB 2A 

12. "ACONDRA# & CO., INC. (S. )RAEDES R. DE SANTOS G.R. N. L'2'1 1 )!IL. 

 A<l 9, 19+

Facts:

T45 =0la6/ all5>5s, < a uaa>5 6 a au/0?l5  /45 0a>5d <55s, /45 0a>5 -uld 005da/5ly 4av5 /45 <>4/ / <5=ls5 a6d d5=la<5 /45 -4l5 a0u6/  /45 <6=al a6d 6/5<5s/, s5=u<5d ?y sad 0a>5, du5 a6d aya?l5 6 $a6uaa>5d au/0?l5, -4l5 6 ss5ss6  /45 d556da6/, 05/ -/4 a6 a==d56/ <5sul/6> 6 /s //al -<5=@ a6d lss ?y <5as6  /45 alu<5  /45 d556da6/ / <5la=5 < / <5s/<5 /45 au/0?l5 < / ay /45 valu5 /45<5 la6/ <5=ls5d /s 0a>5 a6d -4a/ <50a65d  /45 -<5=@5d au/0?l5 -as sld a/ u?l= au=/6 < /45 su0  )+ /4a/ a/5< aly6> /4s a0u6/ / /45 a==u6/  d556da6/ /45<5 -as a6 u6ad  ?ala6=5  )98.9 lus 6/5<5s/ a/ 12 5< =56/ 5< a66u0 <0 "a<=4 2', 19', a6d 2 5< =56/  /45 a0u6/ du5 as a//<65ys 55s, -4=4 d556da6/ <5us5d / ay. As a6 al/5<6a/v5 =aus5   a=/6, /45 la6/ <5<du=5s /45 all5>a/6s =6/a65d 6 /45 <u6d  45< d50u<<5<, all5>5s /4a/ u6d5< /45 <vs6s  A=/ N. '122, aa6s/ 45<. T45 d556da6/ d50u<<5d / /45 =0la6/, /45 /<al =uav5 /45 la6/ v5 days -/46  -4=4 / a056d. )la6/ a==5/5d / /45  /45 d50u<<5< a6d >av5 6/=5 /4a/ / 5l5=/5d / s/a6d u6 /s =0la6/ a6d /45<5u6 /45 l-5< =ua6s/ /45 la6/. )la6/ a==5/5d / /45  /45 =0la6/ a6d 0v5d < a 65- /<al. *6 /45 d56al  /4s 0/6 a6d u6 a5al / /4s =u5s /4a/ /45 /<al =u /45 d50u<<5<  /45 d556da6/ / /45 la6/s =0la6/ II. I6 ds0ss6> /45 =as5 III. I6 6/ <56d5<6> jud>056/ 6 a==,  ?u/ 6/ ad0//6>, /4a/ /45 =as5 alls u6d5< /45 <vs6s  A=/ N. '122, /45 l-5< =u /4a/ /45 sad la- s u6=6s//u/6al 6 /4a/ / =6s=a/5s <5 /45 la6/s 0/6 < 65- /<al. Issue:

 745/45< < 6/ /45 =6/56/6  /45 d556da6/ /4a/ u6d5< /45 <vs6s  A=/ N. '122, aa6s/ 45< s vald. Held:

N. I6  /45 d50u<<5<. T45 a5lla6/s 6056/s  5<<< a<5 sus/a65d. 745<5<5 / s 6/ 65=5ssa6056/  5<<<. T45  /45 =0la6/ s 45<5?y s5/ asd5 a6d /4s =as5 -ll ?5 <50a6d5d / /45 /<al =us 6 a==a6s/ /45 d556da6/a5ll55. 129

LLB 2A 

"E$OS, AIRES! !. 1. LE(# !ER"ANOS, INC. (S. GER(ACIO G.R. N. L' 9 )4l. +2

O=/?5< 2, 199

Fa=/s

O6 "a<=4 1, 19, la6/ L5vy !5<0a6s, I6=., sld / d556da6/ La;a< Blas G5 /45 6/al ay056/, 55=u/5d a <0ssa>5d /45 =a< / /45 la6/. D556da6/ al5d / ay /45 6/5 6 /s 0a/u</y. 745<5<5, la6/ <5=ls5d /45 0a>5 a6d /45 =a<  -as sld a/ u?l= au=/6, a/ -4=4 la6/ -as /45 4>45s/ ?dd5< < )1,8. T45 <5s56/ a=/6 s < /45 =ll5=/6  /45 ?ala6=5  )1, a6d 6/5<5s/. Issue:

 745/45< < 6/ /45 =as4 ay056/ 0ad5 ?y G5
N. A
I6 a =6/4/ / =a6=5l /45 sal5 < <5=ls5 /45 0a>5  65 4as ?556 >v56 6 /45 <5<55056/ / /4s 55=/. !-5v5<,  /45 v56d< 4as =4s56 / <5=ls5 /45 0a>5 45 s4all 4av5 6 ua6s/ /45 u<=4as5< < /45 <5=v5 ?y /45 sa05 a6d a6y a><55056/ / /45 =6/4/ /5<0, 6 -4=4 /45 ?ala6=5, a/5< ay056/  /45 6/al su0, s4uld  ?5 ad 6 /s //al/y a/ /45 /05 s5=5d 6 /45 <0ssly /45 0a>55 s 6/ ?u6d  ?y /45 <4?/6 /45<56 =6/a65d as / /45 <>4/ / /45 <5=v5
1

LLB 2A 

1'. IND*STRIAL FINANCE COR). (S. TOBIAS G.R. N. L'1+++ 8 SCRA 28

$uly 2, 19

Facts:

O6 $u65 1, 198, <5s6d56/ Cas/< T?as ?u>4/ 6 6s/all056/ 65 1 Dd>5 /a/6 45 55=u/5d a <0ss65d /45 =4a//5l 0a>5 / 5//65< I6dus/<al F6a6=5 C<a6s/ <5s6d56/ T?as / <5=v5< /45 u6ad ?ala6=5  /45 <0ss /45 =0la6/  5//65< I6dus/<al F6a6=5 C< /45 sa05 ?y  <5s6d56/ T?as / ay /45 =s/  <5a5d /
 745/45< /45 5//65< s s/ll <55 / aval  /45 <505dy  5a=/6> ulll056/  /45 ?l>a/6  <5s6d56/ T?as Held:

 A<55d 6s/all056/s, /45 v56d< < s5ll5< 4as /45 /6 / 5/45< 5a=/ ulll056/ ?y /45 u<=4as5<  /45 ?l>a/6, < / =a6=5l /45 sal5, < / <5=ls5 /45 0a>5 6 /45 u<=4as5d 5 /45 sal5  /45 / /45 =4a//5l 0a>5 6 sad / ulll056/   /45 ?l>a/6  <5s6d56/ T?as.  Als, / s =la05d ?y <5s6d56/ T?as /4a/ 45 4as su<<56d5<5d /45 /5d su<<56d5< -as 655=/ual as a< as /45 5//65< s =6=5<65d ?5=aus5 5//65< =uld 6/ /a@5 ss5ss6  /45 / su<<56d5<5d 05/ a6 a==d56/ 5//65< -as 6/ sa/s5d -/4 /45 <5a<  /45 6s45d  / a==5/ su=4 su<<56d5< a6d 6 ?<6>6> su/ / <5=v5< /45 ?ala6=5  /45 u<=4as5 <=5.

11

LLB 2A 

1+. RIDAD (S. FILI)INAS IN(EST"ENT G.R. N. L98 12 SCRA 2'

$a6ua
Facts:

)la6/s u<=4as5d <0 /45 Su<505 Sal5s a<d D5v5l056/ C< /45 u<=4as5 <=5 a6d a d55d  =4a//5l 0a>5 6/ 6ly 6 /45 /- v54=l5s u<=4as5d ?u/ als 6 a6/45< =a< C45v<l5/ a6d la6/s 65d /s <>4/s, //l5 a6d 6/5<5s/ / /45 a?v5056/65d <0ssa>5 / d556da6/ Fl6as I6v5s/056/ a6d F6a6=5 C<a>5 5/45s/ ?dd5< a6d u<=4as5<. A6/45< au=/6 sal5 -as 45ld 6vlv6> /45 <50a66> <5a>5 s6=5 la6/s ?l>a/6 -as 6/ ully sa/s5d ?y /45 sal5  /45  v54=l5s. O6 F5?a>5 s 6ull a6d vd 6 s a< as /45 /a=a?  sad /a=a? al 55=/. Issue:

 745/45< < 6/ /45 <5=lsu<5  /45 =4a//5l 0a>5 s vald

!5ld

NO. *6d5< A <505d5s 1 Ea=/ ulll056/  /45 ?l>a/6, s4uld /45 v56d55 al / ay 2 Ca6=5l /45 sal5, s4uld /45  v56d55s alu<5 / ay =v5< /- < 0<5 6s/all056/. I6 /45 6s/a6/ =as5, D556da6/ C<a>5 u6 d5aul/  ?y /45 la6/s 6 /45 ay056/  /45 a><55d 6s/all056/s. !av6> =4s56 / <5=ls5 /45 =4a//5l 0a>5, a6d ?u>4/ /45 u<=4as5d v54=l5s a/ /45 u?l= au=/6 as /45 4>45s/ ?dd5<, / su?0//5d /s5l / /45 =6s5:u56=5s  /45 la- as s5==ally 056/65d, ?y -4=4 / s d5505d / 4av5 <56u6=5d a6y a6d all <>4/s -4=4 / 0>4/ /45<-s5 4av5 u6d5< /45 <0ssa>5 as -5ll as /45 ay056/  /45 u6ad ?ala6=5. T45 <5=lsu<5 s 6ull a6d vd.

12

LLB 2A 

1. ESG*ERRA (S. CO*RT OF A))EALS G.R. N. 1191 1 SCRA 1

F5?
Facts:

$ul5/a Es>u5<al aa6s/ 45< 4us?a6d (=56/5 Es>u5<<55056/ -4=4 -as su?0//5d / /45 =u<55056/, Es>u5<. I l=a/5d a/ 1' A0as (lla>5 -as sld a6d /45 65/ <=55ds ds/<?u/5d a== / /45 a><55056/. )5//65< s/a 654al  /45 <56/als  /45 sad ?uld6> -4=4 (ECCI <5us5d. T4us, 5//65< l5d a 0/6 -/4 <5s6d56/ =u /4a/ (ECCI ?5 u5<. II -as sld / 45<56 <va/5 <5s6d56/ Su<5s/5 )<5u5< /45 6ull=a/6  /45 sal5 ?5<5 <5s6d56/ /<al =u<u6d /4a/ (ECCI s 6/ /45 la-ul a6d a?slu/5 -65< /45<5  a6d /4a/ s45 4as 6/ ?556 6/5d 6< =6sul/5d as / /45 /5<0s a6d =6d/6s  /45 sal5. N/ ?56> a a 45<56 5//65<s 0/6 / d5=la<5 /45 sal5 vd a? 6/. I6 /s "a65s/a/6 Su<5s/5 6/s u/ /4a/ 6 /45 =0<0s5 a><55056/ 55=u/5d ?y (ECCI a6d $ul5/a (. Es>u5<av5 45< 5<5ss =6s56/ / /45 sal5  /45 sad ?uld6>. Issue:

 745/45< < 6/ /45 C6/
Held:

T45 Cvl Cd5 <vd5s /4a/ a =6/v56 6 au/4</y < l5>al <5<5s56/a/6, <  -4 4as a=/5d ?5y6d 4s -5al <5<5s56/a/6, < -4 4as a=/5d ?5y6d 4s -5u5< II ?y (ECCI / <va/5 <5s6d56/ Su<5s/5 )<5<55056/ <55ly =6s56/5d / a6d vlu6/a<ly s>65d ?y  5//65< $ul5/a Es>u5< u6au/4<;5d s la6ly 6=6><55056/ / (ECCI, -4=4 s5=5d 6 =6d/6 /4a/ /45 la//5< s4all  a6y  /45 <556/s au/4</y,  su=4 a=/ s -/46 /45 /5<0s  /45 -5<  a//<65y, as -<//56, 5v56  /45 a>56/ 4as 6 a=/ 5=55d5d /45 l0/s  4s au/4</y a== / a6 u6d5 ?5/-556 /45 <6=al a6d /45 a>56/.

1

LLB 2A 

T4us, as a< as <va/5 <5s6d56/ Su<5s/5 )<5al ?5=aus5 / -as 55=u/5d 6 a==<55056/, au/4<;5d 6/ 6ly ?y /45 a56=y =<5a/5d /45<5?y, ?u/ ?y /45 a<v6> =uu5< II =a66/ 6 a6y 0a665< < >us5 ?5 d5505d u656<=5a?l5, as =6/56d5d ?y 5//65<.

1'

LLB 2A 

"ERCADO, NERI%%A C. 1. FILIN(EST CREDIT COR). (S. CO*RT OF A))EALS G.R. N. 82+8 18 SCRA 188

S5/50?5< 29, 1989

Facts:

T45 <va/5 <5s6d56/s, /45 sus5s $s5 Sy Ba6> a6d Ilu06ada Ta6 -5<5 56>a>5d 6 /45 sal5  >  )++,.. T45y al5d < 6a6=al asss/a6=5 <0 45<56 5//65< Fl6v5s/ C<5d/ C<<55d / 5/56d 6a6=al ad 6 /45 =5<55d / l5as5 <0 /45 5//65< /45 <=@ = <0 $uly +, 1981, aya?l5 as ll-s )1,. P ua / /45 2' 06/4ly <56/als. I6 add/6, / >uaa>5 v5< /- a<=5ls  la6d 6 av<  /45 5//65<. T45 <=@ =a>5. T45 sus5s l5d a =0la6/ ?5<5 /45 RTC. T45 RTC <56d5<5d a d5=s6 6 av<  <va/5 <5s6d56/. T45 5//65< 5l5va/5d /45 =as5 / CA -4=4 a<05d /45 d5=s6  RTC 6 //. Issues:

1. 745/45< < 6/ /45 6a/u<5  /45 =6/
Held:

1. #ES. T45 6/56/  /45 a<55056/ 4as ?556 =</=;5d as a l5as5 6ly 6 6a05. T4us 6, (da. D5 $s5 v. Ba< =6d/6al sal5s  /45< >ds, ?u/ -4 d 6/ -s4 56ly / 0a@5 a ?a<>a6 6 /4a/ <0, < 65 <5as6 < a6/45<, 4av5 <5:u56/ly <5s/<5d / /45 d5v=5   0a@6> =6/4u/ /45 /5<0 s ad, //l5 s4all /45<5u6 v5s/ 6 /45 l5ss55. I/ s ?vus /4a/ su=4 /a<55d a0u6/ <5sul/s, ?y /45 /5<0s  ?a<>a6, 6 /45 /
1+

LLB 2A 

2. NO, / s al/5<6a/v5. T45 s5ll5<  0va?l5 6 6s/all056/s, 6 =as5 /45 ?uy5< als / ay /- < 0<5 6s/all056/s, 0ay 5l5=/ / u <505d5s 1 5a=/ ulll056/ ?y /45 u<=4as5<  /45 ?l>a/6 2 =a6=5l /45 sal5 <  <5=ls5 /45 0a>5 6 /45 u<=4as5d <54 /45 s5/u, /45 v56d<, ?y <5/a66> -65us5  ?56> /45 l5ss<, <5/a6s, l@5-s5 /45 <>4/ / <5ss5ss /45 sa05, -/4u/ >6> /4<u>4 /45 <=5ss  <5=lsu<5, 6 /45 5v56/ /45 v56d55l5ss55 d5aul/s 6 /45 ay056/  /45 6s/all056/s. T45<5 a<s5s /45<5<5 6 655d / =6s//u/5 a =4a//5l 0a>5 v5< /45 0va?l5 sld. "<5 0 /45 <5 /45 =6/5/s / @55 all /45 6s/all056/s=u0<56/als al<5ady ad. T45 )5//6 s GRANTED /45 D5=s6  /45 Cua6s/ /45 <va/5 <5s6d56/s.

1

LLB 2A 

18. IND*STRIAL FINANCE COR). (S. RA"IRE% G.R. N. L'821  SCRA 1+

"ay 2, 19

Facts:

O6 D5=50?5< ', 19 A<6ald D;6 sld / C6su5l Al=?a 4s 19 0d5l C45v<l5/ =a< < )1,1+.89, aya?l5 6 5>4/556 06/4ly 6s/all056/s, -4=4 -5<5 s5=u<5d ?y a =4a//5l 0a>5 6 /45 =a<. O6 /45 sa05 da/5, D;6 ass>65d < /56 /4usa6d 5ss / I6dus/<al F6a6=5 C<4/s a6d 6/5<5s/ 6 /45 =4a//5l 0a>5. C6su5l Al=?a d5aul/5d 6 /45 ay056/  /45  aa>5, /45  -4l5 ?l>a/6 ?5=a05 du5 a6d d50a6da?l5. As  F5?reple"in !ith damages+ for the reco"er1 of the mortgaged car b1 means of a !rit of reple"in.

T45 l-5< =ua>5d =a<. O6 S5/50?5< 2, 19, < l6> a/5< /45 jud>056/ 4ad ?5=05 6al, s45 ad I6dus/<al F6a6=5 C<a>5d =a< -4=4 -as /456 6 /45 ss5ss6  /45 A= "/< S5ua6 C/y. A/ /45 55=u/6 sal5 45ld 6 A<l 2+, 19' I6dus/<al F6a6=5 C<4/ /45 0a>5d =a< < )',. !-5v5<, 6 5  /45 =a<. T45 =<a/6. C6su5l Al=?a s5d /45 0/6 < a /4a>5J  -4=4, al/4u>4 6/ ?565=al / /45 0a>55, I6dus/<al F6a6=5 C< /45 d5=56=y u6d5< a
 745/45< < 6/ /45 0a>55ass>655 6 6s/all056/ sal5s  5 /45 <505dy  s5== 5<<0a6=5. Held:

 #ES. A== / aa>< s 6/ la?l5 < a6y d5=56=y. I6 /4s =as5, /45<5 -as 6 <5=lsu<5. T45 0a>55 5vd56/ly =4s5 /45 <505dy  s5== 5<<0a6=5, I/ l5v5d u6 /45 =a< ?y v. I/ s 56//l5d / a6 alas -</   55=u/6 < /45 056/ /4a/ 4as 6/ ?556 sa/s5d. T45 a>5d <5a>5. !56=5, /45 s5ll5<=<5d/< s 56//l5d / a d5=56=y jud>056/ Su/45<6 "/ /45 0/6 < a /4a6s/ <5s6d56/ C6su5l Al=?a.

1

LLB 2A 

19. SO*T!ERN "OTOR INC. (S. ANGELO "OSCOSO G.R. N. L1''+ 2 SCRA 18

"ay &, 191

Facts:

)la6/ Su/45<6 "/5l "s=s 65 C45v<l5/ / a d-6 ay056/, /45 d556da6/ 55=u/5d a <0ss /45 u6ad ?ala6=5  /45 u<=4as5 <=5 / s5=u<5 /45 ay056/  -4=4, a =4a//5l 0a>5 -as =6s//u/5d 6 /45 / a6 u6ad ?ala6=5   )','+.. T45 d556da6/ al5d / ay /4<55  6s/all056/s 6 /45 ?ala6=5  /45 u<=4as5 <=5. )la6/ l5d a =0la6/ a>a6s/ /45 d556da6/, / <5=v5< /45 u6ad ?ala6=5  /45 <0ss6> / d556da6/, -5<5 a//a=45d ?y /45 S45< a6d sad /4/ / /45 la6/s =0u6d < sa5 @556>. A/5< a//a=4056/ a6d ?5<5 /45 /<al  /45 =as5 6 /45 05</s, a=/6> u6 /45 la6/s 0/6 < /45 005da/5 sal5  /45 0a>5d /us/ 1, 19+, u6/l ully ad, lus 1Q /45<5 as a//<65yHs 55s a6d =s/s. !56=5, /4s a5al ?y /45 d556da6/. ISSUE:

 745/45< < 6/ /45 a//a=4056/ =aus5d / ?5 l5v5d 6 /45 /a>5 6 sad /
NO. A <505d5s I Ea=/ ulll056/  /45 ?l>a/6, s4uld /45 v56d55 al / ay 2 Ca6=5l /45 sal5, s4uld /45 v56d55s alu<5 / ay =v5< /- < 0<5 6s/all056/s a6d  F<5=ls5 /45 =4a//5l 0a>5 6 /45 /46> sld,  65 4as ?556 =6s//u/5d, s4uld /45 v56d55s alu<5 / ay =v5< /- < 0<5 6s/all056/s. I6 /4s =as5, 45 s4all 4av5 6 ua6s/ /45 u<=4as5< / <5=v5< a6y u6ad ?ala6=5  /45 <=5. A6y a><55056/ / /45 =6/ u6ad ?ala6=5 du5 6 /45 <0ssa>5 La- ?u/ /4s5 <5s=<?5d < a>5 / u6la-ul < <<5>ula< 6 la6/s a=/  a//a=46> /45 0a>5d /a/6, / 0ay 56<=5 55=u/6  /45 jud>056/ /4a/ 0ay ?5 av056/. I/ s4uld  ?5 6/5d /4a/ a 4us5 a6d l/ a/ Sa6 $s5, A6/:u5 -5<5 als a//a=45d. N 65 =a6 su==5ssully  =6/5s/ /4a/ /45 a//a=4056/ -as 05<5ly a6 6=d56/ / a6 a>5 =<5d/< 0ay <5=v5< jud>056/ 6 /45 0a>5 d5?/ a6d =aus5 a6 55=u/6 6 /45 0a>5d <5666> 4s =vl a=/6. 18

LLB 2A 

11. SER(ICE7IDE S)ECIALISTS INC. (S. INTER"EDIATE A))ELLATE CO*RT G.R. N. '++ 1' SCRA 8

$u65 8, 1989

Facts:

T45 <va/5 <5s6d56/ Gal=a6 S/6 u<=4as5d <0 Ca< T a ?ala6=5  )8,'.. O6 Au>us/ 1', 199, S/6 55=u/5d a <0ss /4a/ /45 a=5 valu5  /45 6/5 -4=4 s ) 8,'., s4all J?5 aya?l5, -/4u/ 655d  6/=5  d50a6d, 6 6s/all056/s  /45 a0u6/s ll-6> a6d a/ /45 da/5s 45<56a/5< s5/  S5/50?5< 1', 199, /4us/ 1', 1982J. As ua>5 v5< /45 su?j5=/ 0/< v54=l5 6 av<  Ca< Ta>5 55=u/5d ?y <5s6d56/ Gal=a6 S/6 -as 65d ?y Ca< T65d sad =<5d/ 6 av<   5//65< S56056/. All5>6> /4a/ S/6 al5d / ay  06/4ly 6s/all056/s, /45 5//65< l5d /4s a=/6 a>a6s/ Gal=a6 S/6 a6d J$46 D5.J T45 <5l5 su>4/ ?y /45 la6/ s a 7</   R5l5v6 v5< su?j5=/ 0/< v54=l5 <, 6 /45 al/5<6a/v5, < a su0  065y  ) 2,19.'2 lus 6/5<5s/ /45<56 a/ /45 40s5l as /45 J$46 D5J 6 /45 C0la6/, 6as0u=4 as 45 s 6 ss5ss6  /45 su?j5=/ v54=l5, 45 all5>5d /45 a=/ /4a/ 45 4as  ?u>4/ /45 0/< v54=l5 <0 Gal=a6 S/6 6 Nv50?5< 2', 199. T45 R5>6al T<al Cu /45 7</  R5l5v6 a6d  ?ala6=5 6 /45 0/< v54=l5 -/4u/ add/6al 6/5<5s/. N/ sa/s5d -/4 /45 d5=s6  /45 /<al =u056/ 6 A<l 2+, 198. !56=5, /4s 5//6. Issues:

1. 745/45< < 6/ /45 sal5  a 0a>5d <5a>55 a5=/s /45 vald/y  /45 sal5. 2. 745/45< < 6/ 6 sal5  5
1. NO. T45 a>< =6/6u5s / ?5 /45 -65<  /45 <55d u6d5< a6   56al la?l/y, / s5=u<5 /45 -<//56 =6s56/  /45 0a>55. Fa>5 a<5 ?6d6>, -4l5 /45y su?ss/, 6/ 6ly u6 /45 a /450 ?u/ als u6 /4s5 -4 la/5<, ?y u<=4as5 < /45<-s5, a=:u<5 /45 <5a>55 / /45 sal5  /45 0a>5d <5a>< u6d5< /45 R5vs5d )56al Cd5 a6d /45 ?6d6> 55=/  su=4 sal5 6 /45 0a>55 u6d5< /45 D55d  C4a//5l "a>5.

19

LLB 2A 

2. #ES. Aa/6 2 =a6=5l /45 sal5 a6d  <5=ls5 /45 0a>5 6 /45 /46> sld. T45s5 <505d5s a<5 al/5<6a/v5 a6d /45 v56d< =a66/ aval  /450 a/ /45 sa05 /05. I/ s =l5a< <0 /45  u6ad su0s u6d5< /45 <0ss d65 s, / 4as d5505d -av5d /45 /4a>5. I6 a s0la< =as5, -45<5 /45 v56d< l5d a6 a=/6 =6/a66> /4<55 <505d5s / =ll5=/ /45 u<=4as5 <=5 / s5;5 /45 <5 < <5l5v6 a6d / <5=ls5 /45 0a>5 55=u/5d /45<56, 75 45ld /4a/ su=4 a s=4505 s 6/ 6ly <<5>ula< ?u/ s a la>?a N. L11, D5=50?5< , 191,  SCRA 88'.

1'

LLB 2A 

111. BAC!RAC! "OTOR CO., INC. (S. )ABLO A. "ILLAN G.R. N. '22+ 1 )4l. '9

 A<l 2+, 19+

FACTS:

O6 D5=50?5< 12, 19, /45 d556da6/, )a?l A. "lla6, < valu5 <5=5v5d, 55=u/5d a6d d5lv5<5d / /45 Ba=4 =a< u<=4as5d ?y /45 sad d556da6/ <0 /45 la6/, as 0ay ?5 s556 <0 /45 =4a//5l 0a>5 55=u/5d ?y /45 d556da6/ 6 av<  /45 la6/ 6 D5=50?5< 12, 19, a6d <5>s/5<5d 6 /45 =5  /45 R5>s/5<  D55ds  /45 C/y  "a6la. D556da6/ al5d / ay /4<55 06/4ly 6s/all056/s D5=50?5< 22, 19, a6d $a6uaa>5. A/5< =<5d/6> all /45 ay056/s 0ad5 ?y d556da6/ 6 a==u6/  sad <0ss5/45< -/4 6/5<5s/ /45<56. D556da6/ 5<5d / <5/u<6 /45 s5=6d 4a6d R56aul/ /u<6> =a< / /45 la6/ 6 ay056/  /45 ull a0u6/ u6d5< /45 <0ssa>5 ?u/ la6/ <5us5d / <5=5v5 /45 sa05, a6d 4as l5d /4s =0la6/ < /45 ull a0u6/  /45 u<=4as5 <=5 -/4u/ <5=ls6> /45 =4a//5l 0a>5. T45 /<al =u
 745/45< < 6/ /45 ad/6  a av5s /45 <5jud=5d 54/ / 5a=/ /45 ulll056/  a6 ?l>a/6. HELD:

NO. B5<5 A=/ N. '122 -as ad/5d /45 l5>al <>4/ / 5a=/ /45 ulll056/  a6 ?l>a/6 -as als avala?l5 / /45 5a/6. A=/ N. '122 d5s 6/ 5<5ssly < 0l5dly <4?/ /45 a /45 ulll056/  /4a/ ?l>a/6. N5/45< d /45 /5<0s  /4a/ A=/ 5<5ssly <vd5 6< d /45y 0ly /4a/, u6 alu<5 / ay /- < 0<5 6s/all056/s 6 /45 u<=4as5 <=5  5a>5  65 4as ?556 >v56 6 /45 <56>, / s 5vd56/ /4a/ /45 L5>sla/u<5 6 ad/6> A=/ N. '122 dd 6/ 6/56d / l0/ /45 <505d5s avala?l5 / a v56d<  54/ / =a6=5l /45 sal5 < <5=ls5 /45 0a>5  65 4ad ?556 >v56 6 /45 <54/s ?y su=4 a  v56d< u6/l a/5< /45 v56d55 4as al5d / ay /- < 0<5 6s/all056/s a6d u4/s  /45 v56d< a/5< 45 4as aval5d 40s5l  5/45<  /45 <505d5s 056/65d /45<56. I6 a sal5  5a/6, as /45 la6/ 4as d65 6 /4s =as5, =a6=5l /45 sal5 < <5=ls5 4s 0a>5  65 4as ?556 >v56 6 /45 <5
1'1

LLB 2A 

"ORALES, "IC!AEL E*GENE G. 112. "ACONDRA# & CO. (S. BENITO & OCA")O, 2 4l. '1

11. )ASC*AL (S. *NI(ERSAL COR)., 1 SCRA 121 Facts:

)la6/a5ll55 sus5s L<56; )as=ual a6d L56la T<<5s sus5s )as:ual 55=u/5d /45 <5al 5s/a/5 0a>5 su?j5=/ 0a//5<  /4s =0la6/ 6 D5=50?5< 1', 19 / s5=u<5 /45 ay056/  /45 6d5?/5d65ss  )D) Ta/6  )1+2,+.+  -4=4 -as / ?5a< 6/5<5s/ a/ 1Q 5< 06/4 s/a /4a/ day, ?u/ /45 la6/s >uaa>5. T45 )D) T /4<55, /4us l5av6> a ?ala6=5  )8,'1.9 6=lud6> 6/5<5s/ du5 6 F5?a6s/ /45 )D) Ta>5s a6d / <5ss5ss all /45 units sold to P*P rans. as the spouse Pascual‘s principal, including the 4 units guaranteed

u6d5< /45 su?j5=/ R5al Es/a/5 "a>5. Du<6> /45 45a<6>, *6v5 /45 + u6/s >uaa>5, a6d / <5=ls5 all /45 =4a//5l 0a>5s =6s//u/5d /45<56, <5sul/6> 6 /45 sal5  /45 /a>a>5 /45y  =6s//u/5d 6 2 a<=5ls  la6d 6 av<  /45 *6v5uaa/6   )D) T056/ 6 av<  /45 sus5s )as=ual a6d a>5. Issue:

 7as A
Held: he upreme Court affirmed the lo!er court‘s decision.
a<>u5s /4a/ Aa>5 6 /45 /46> sld, ?u/ 6/ a <5=ua6s/ /45 s5=u</y u/ u ?y a /4 /4a/ /45  -4=4 s 6/ su?j5=/ / <5v5- ?y /45 Su<505 Cu
1'2

LLB 2A 

third part1 to guarantee the purchaserGs performance of his obligation.+ $ut the upreme Court

/ sus/a6 /4s a<>u056/  /45 a5lla6/ -uld ?5 / 6d<5=/ly su?v5v56 ?y A
1'

LLB 2A 

11'. %A#AS (S. L*NETA "OTORS 11 SCRA 2 Facts:

Eu/< %ayas, $<, u<=4as5d 6 6s/all056/ ?ass a 0/< v54=l5 d5s=<?5d as ONE 1 *NIT FORD T!A"ES FREIG!TER "<. R:u5 Es=a  /45 Es=a E6/5<<s5s 6 Ca>aya6 d5 O< C/y, d5al5<  <5s6d56/ Lu65/a "/< C0a6y. T45 <0ss /45 ),92. d5?/. S0ul/a65usly   -/4 /45 55=u/6  /45 <0ssa>5 6 /45 su?j5=/ 0/< v54=l5 6 av<  /45 <5s6d56/. A/5< ay6> a //al a0u6/   ),1'8., /45 5//65< -as u6a?l5 / ay u /45 <5s6d56/ Lu65/a "/< C0a6y / 5/a>5. I6 4s a6s-5< -/4 a<0a/v5 d556s5s a6d =u6/5<=la0, Eu/< %ayas, $<. ad0//5d 4av6> 55=u/5d /45 <0ss E6>65 N. 'E128 -4=4 45 u<=4as5d <0 /45 Lu65/a "/< C0a6y ?u/ 45 denied his alleged outstanding liabilit1 of P,44.79 plus interest thereon H the said obligation if 

/45<5 -as a6y, 4ad al<5ady ?556 ds=4a<>5d 5/45< ?y ay056/ < ?y sal5 6 u?l= au=/6  /45 sad 0/< v54=l5 as 5vd56=5d ?y a N/=5  Sal5 ISSUE:

 745/45< < 6/ Lu65/a "/a>5.

HELD:

F<5=lsu<5  =4a//5l 0a>5 A>56=y )<6=al a6d a>56/ <5la/6s4 B56> a =ll5=/6> a>56/  a =0a6y <v5s /45 6a/u<5  <5la/6s4 ?5/-556 <6=al a6d a>56/. T45 Es=a E6/5<<s5s  Ca>aya6 d5 O<5 C/y -as a6 a>56/  Lu65/a "/< C0a6y. A v56=a6/ 5vd56=5 -4=4 <v5s /45 6a/u<5  /45 <5la/6s4 ?5/-556 Lu65/a "/< Compan1 and Ascao Anterprises is
E6/5<<s5s 6 /45 06/4ly 6s/all056/s ad ?y "<. Eu/< %ayas, $<. I6 /45 =5a>56/ as a< as /45 u<=4as5  /45 su?j5=/ 0/< v54=l5 -as =6=5<65d. T45 <6=al a6d a>56/ <5la/6s4 s =l5a< . $ut e"en assuming that the #distinct and independent entit1+ theor1 of the <va/5 <5s6d56/ s vald, /45 6a/u<5  /45 /65d /s <>4/s vsavs /45 sal5 / <5s6d56/ Lu65/a "/< C0a6y, /45 6a/u<5  /45 / Es=a E6/5<<s5s a6d Eu/< %ayas, $<. dd 6/ =4a6>5 a/ all. As ass>655, <5s6d56/ Lu65/a "/< C0a6y 4ad 6 ?5//5< <>4/s /4a6 ass>6< Es=a E6/5<<s5s u6d5< /45 sa05 / /45 l=y  u6d5 Aa>5s v5< 5
1''

LLB 2A 

11+. "ANILA TRADING & S*))L# CO. (S. RE#ES 2 )!IL. '1 Facts:

O6 D5=50?5< 1, 19, ll-6> /45 56a=/056/  A=/ N. '122 < /45 I6s/all056/ Sal5s La-, E.". R5y5s 55=u/5d 6 av<  /45 "a6la T & Suly C., a =4a//5l 0a>5 6 a6 au/0?l5 as s5=u</y < /45 ay056/  /45 su0  )', -4=4 R5y5s a><55d / ay 6 /56 5:ual 06/4ly 6s/all056/s. As u6d ?y /45 /<al jud>5, R5y5s al5d / ay s05  /45 6s/all056/s du5 6 4s ?l>a/6. T45<5u6 /45 "a6la T & Suly C., <=55d5d / <5=ls5 /s =4a//5l 0a>5. T45 0a>5d <5 /4s su0, -/4 6/5<5s/, =s/s, a6d l:uda/5d da0a>5s / R5y5s 6d5?/5d65ss, /45 la//5< -5d /45 =0a6y a ?ala6=5  )2+.',  -/4 6/5<5s/ /45<56 a/ /45 =4s56 / <5=ls5 /s =4a//5l 0a>5, 4ad 6 ua6s/ d556da6/ < /45 <5=v5056/ a?slv6> 40 <0 /45 =0la6/, -/4 =s/s. F<0 /4s jud>056/, /45 la6/ 4as /a@56 a6 a5al a6d 45<5 =6/56ds /4a/ /45 l-5< =u A=/ N. '122  /45 )4l65 L5>sla/u<5 u6=6s//u/6al < /45 ll-6> <5as6s 1 6 /4a/ / 50?4/s,  6 /4a/ / s =lass l5>sla/6, a6d ' 6 /4a/ / d565s v56d
1. 745/45< < 6/ A=/ N. '122 vla/5s /45 =6s//u/6al <vs6 J/4a/ 6 ?ll -4=4 0ay ?5 56a=/5d 6/ la- s4all 50?
 A=/ N. '122 @6-6 as /45 56<=5056/ sal5s la- s vald a6d 56<=5a?l5. T45 )4l65 L5>sla/u<5 4av6> 4ad /45 u<s5 6 06d 6 56a=/6> A=/ N. '122 / <vd5 l5>sla/6 =6=5<66> sal5s 6 /45 6s/all056/ la6, /4s su?j5=/ -as su=56/ly  5<5ss5d ?y 6d=a/6> 6 /45 //l5 /4a/ /45 la- 4ad / d -/4 a6 a056d056/  /45 Cvl Cd5 6 /45 v56 / u<=4as5 a6d sal5. L5>sla/6 s4uld 6/ ?5 50?a<65d / <505dy a6 5vl -as 6/ d5s>65d / <5:u<5 ><5a/ a /45 ?j5=/  /45 la- 6 /s //l5. )a4/s 6 asla/u<5 0ay =4a6>5 5s/6> <505d5s a6d 0d5s  <=5du<5 -/4u/ 0a<6> /45 ?l>a/6s  =6/a>5 0ay 6/, 5v56 -456 u?l= l=y s 6v@5d as a6 5=us5, ?5 <5ss5d s a< as / =u/ d-6 /45 s5=u</y  a 0a>5 -/4u/ 0d5
1'+

LLB 2A 

I6 /45 )4l65s /4<55 <505d5s a<5 avala?l5 / /45 v56d< -4 4as sld 5a/6 Ba=4a>5  65 4as ?556 >v56 6 /45 <5sla/v5 au/4</y a6d -456 vla/v5  6 =6s//u/6al <6=l5, s4uld ?5 5<5/ua/5d ?y /45 Cu
1'

LLB 2A 

"*ALI", A"IN C!ADRIE A. 11. IND*STRIAL FINANCE COR)ORATION (S. G.R. N. L'1+++ 8 SCRA 28

CASTOR TOBIAS

$uly 2 19

Fact:

T?as ?u>4/ 6 6s/all056/ 65 a dd>5 /a/6 45 55=u/5d a <0ssa>5 6 /45 dd>5 /65d /45 =4a//5l 0a>5 / 5//65< F6a6=5 C<4 a l5//5< >av5 T?as a =4=5  5/45< ay6> /45 ?ala6=5  /45 u<=4as5 <=5 < su<<56d5< /45 /ly su<<56d5<6> /45 / /4a/ /45 /5/ /45 /a6s/ T?as / <5=v5< /45 u6ad ?ala6=5  /45 <0ss
 745/45< ss5ss6 ?y /45 0a>55  /45 dsu/5d v54=l5 ?a
Held:

)ss5ss6 ?y /45 0a>55  /45 dsu/5d v54=l5 ?aa>5 <5=lsu<5. T45 =6/ a sal5  0a=465v5s /45 v56d< /45 /6 / 55<=s5 a6y 65  /45 al/5<6a/v5 <505d5s /45<56 056/65d 5a=/ ulll056/  /45 ?l>a/6, =a6=5l /45 sal5, < <5=ls5 /45 =4a//5l 0a>5. Bu/ 45 v56d<  ?  0a>< 6 /45 <5s56/ =as5 d5ss/5d, 6 /s -6 6/a/v5, <0 =6su00a/6> /45 au=/6 sal5, -/4u/ >a66> a6y  adva6/a>5 < ?565/, a6d -/4u/ =aus6> a6y dsadva6/a>5,, < 4a<0 / /45 v56d55s  ? 0a>55s. T45 l5as/ /4a/ =uld ?5 sad s /4a/ su=4 d5ss/a6=5  /45 la6/ <0 <=55d6>  -/4 au=/6 sal5 -as a /05ly dsav-al /4a/ =a6=5ll5d < <56d5<5d us5l5ss /s <5vus =4=5 / <5=ls5 /s a=/s, ?56> 5/4/ 6 /<u?l5 u6 a6y =u
0l5056/a/6, a6d, /45<5<5, /45 la6/ s 6/ ?a<<5d <0 su6> 6 /45 u6ad a==u6/.

T45 <505d5s <vd5d < 6 A 0<5 /4a6 a 05<5 d50a6d / su<<56d5< ss5ss6  /45 ?j5=/  /45 0a>5. S6=5 /45 5//65< 4as 6/ aval5d /s5l  /45 <505dy  =a6=5ll6> /45 sal5  / /45 =4a//5l 0a>5 6 sad / ulll056/  /45 ?l>a/6  <5s6d56/ T?as, /45 v56d55  /45 /
1'

LLB 2A 

/45 la6/ s <5=lud5d / <5ss < =ll5=/6  a6 a==u6/ s5=u<5d ?y a =4a//5l 0a>5 a/5< / s4all 4av5 6<05d /45 d556da6/s  /s 6/56/6 / <5=ls5 sad 0a>5, a6d /45 "oluntar1 acceptance of such step 5foreclosure6 b1 defendant mortgagor,+ the upreme Court

a>55.

1'8

LLB 2A 

11. S)O*SES NONATO (S. IAC AND IN(ESTORHS FINANCE COR). G.R. N. L181 1' SCRA 2++

Nv50?5< 22 198+

Facts:

I6 19, Sus5s R5s//u/ N6a/ a6d Es/5< N6a/ u<=4as5d a (l@s-a>56 <0 /45 )5l5Hs Ca< I6=. 6 6s/all056/ ?ass. T s5=u<5 /45< =0l5/5 ay056/, N6a/ 55=u/5d a <0ssa>5 6 av<  )5l5Hs Ca< I6=. Su?s5:u56/ly, )5l5Hs Ca< I6=. ass>65d /s <>4/s a6d 6/5<5s/ v5< /45 6/5 a6d 0a>5 6 av<  I6v5s/5s. N6a/, 6 /45< d556s5, a<>u5d /4a/ -456 /45 =0a6y <5ss5ss5d /45 =a<, IFC 4ad, ?y /4a/ a=/, 55=/v5ly =a6=5ll5d /45 sal5  /45 v54=l5. As su=4, / -as ?a<<5d <0 5a=/6> /45 <5=v5
 7ON a v56d< < 4s ass>655, -4 4ad =a6=5ll5d /45 sal5  a 0/< v54=l5 < alu<5  /45 ?uy5< / ay /- < 0<5  /45 s/ula/5d 6s/all056/s, 0ay als d50a6d ay056/  /45  ?ala6=5  /45 u<=4as5 <=5. Held:

N. T45 al=a?l5 la- 6 /4s =as5 a/ ?a< s A <505d5s 1. Ea=/ ulll056/  /45 ?l>a/6, s4uld /45 v56d55 al / ay 2. Ca6=5l /45 sal5, s4uld /45 v56d55Hs alu<5 / ay =v5< /- < 0<5 6s/all056/s . F<5=ls5 /45 =4a//5l 0a>5 6 /45 /46> sld,  65 4as ?556 =6s//u/5d, s4uld /45 v56d55Hs alu<5 / ay =v5< /- < 0<5 6s/all056/s. I6 /4s =as5, 45 s4all 4av5 6 ua6s/ /45 u<=4as5< / <5=v5< a6y u6ad ?ala6=5  /45 <=5. A6y  a><55056/ / =6/<55d 6s/all056/s, /45 v56d< < /45 s5ll5< 4as /45 /6 / aval a6y  /45s5  <505d5s P 5/45< / 5a=/ ulll056/ ?y /45 u<=4as5<  /45 ?l>a/6, < / =a6=5l /45 sal5, < / <5=ls5 /45 0a>5 6 /45 u<=4as5d 56;5d as a6 al/5<6a/v5, 6/ =u0ula/v5, /4a/ /45 55<=s5  65 s4uld ?a< /45 55<=s5  /45 /45 /s valu5 a6d < s/5 a6d sa5@556> 56d6> ull ay056/  /45 sus5s s u6/56a?l5. T45 <5=5/ ssu5d ?y IFC / /45 sus5s -456 / /@ ss5ss6  /45 v54=l5 /4a/ /45 v54=l5 =uld ?5 <5d5505d -/46 1+ days. T4s =uld 6ly 05a6 /4a/ s4uld /45 sus5s al / <5d550 /45 =a< -/46 /45 5<d <vd5d, IFC -uld <5/a6 5<0a656/ ss5ss6  /45 v54=l5. IFC 5v56 6/5d /45 sus5s

1'9

LLB 2A 

N6a/ /4a/ /45 valu5  /45 =a< -as 6/ su=56/ / =v5< /45 ?ala6=5  /45 u<=4as5 <=5 a6d /45<5 -as 6 a//50/ a/ all 6 /45 a ay056/ <0 /45 5//65
1+

LLB 2A 

118. (DA. DE 3*IA"BAO (S. "ANILA "OTORS CO. G.R. N. L18'  SCRA '''

O=/?5< 1 191

Facts:

O6  "a<=4 19', Gaud56= R. 3ua0?a, d5=5as5d 4us?a6d  N5s/< (da. D5 3ua0?a a6d a/45<  /45 /45< 5//654/ <0 "a6la "/< C0a6y, I6=. 65 1 S/ud5?a@5< =a< 6 6s/all056/ la6. *6 d5aul/ 6 /45 ay056/  a 6u0?5<  6s/all056/s, /45 =0a6y su5d Gaud56=6 3ua0?a 6 Cvl Cas5 +'  /45 CFI "a6la. O6 ' D5=50?5< 19', jud>056/ -as 56/5<5d 6 sad =as5, a-a 6 av<  /45 =0a6y /45 su0  ), +'.2, -/4 6/5<5s/ /45<56 a/ 12Q 5< a66u0, a6d ). a//<65yHs 55s. O6 1' $uly 19'1, /45 =us/5<   D55ds < Taus/ 19'1, A//y. F5l ). Davd, /456 =u6s5l < /45 "a6la "/< C0a6y, a==0a65d ?y /45 s45<, 5>5d < /05 -/46 -4=4 / sa/sy /45 jud>056/ d5?/, <s6> /4a/ 6 /45 05a6-4l5, 45 -uld su<<56d5< / /45 =0a6y  /45 S/ud5?a@5< =a<. T4s <s/6 -as a==5/5d a==ly, Gaud56= 3ua0?a d5lv5<5d /45 =a< / /45 =0a6y, a6d A//y. Davd ssu5d a <5=5/ /45<5<5. O6 1 O=/?5< 19'1, Gaud56= 3ua0?a <50//5d / /45 =0a6y, 6 a==u6/  /45 jud>056/, /45 su0   )+. 45 , 4-5v5<, al5d / 0a@5 u a ?ala6=5 s/ll u6s5//l5d   )1,9+2.', -/4 6/5<5s/ /45<56 a/ 12Q 5< a66u0 <0  "a<=4 19'. I6 /45 05a6/05, /45 )a== -a< ?<@5 u/, a6d -456 /45 $aa65s5 <=5s ==u5d /45 =u6/5 C00ss6, a06> /45< /46>s, a =la0 < /s 0a>5 l56 6 /45 =a<  Gaud56= 3ua0?a a6d -as a-a 40 / ll a ?la6@ <0 <5la/v5 / /45 ls/ =a<. 3ua0?a 4av6> s6=5 d5d, 4s -d-, N5s/< (da. D5 3ua0?a, <5/u<65d /45 <0 -/4 /45 s/a/5056/ /4a/ /45 :u5s/65d =a< -as su<<56d5<5d / /45 =0a6y < s/5. O6 18 "ay 19+, a d50a6d -as 0ad5 6 /45 -d- / s5//l5 /45 d5=5as5dHs u6ad a==u6/s, ?u/ 6 v5-  45< <5usal, /45 =0a6y u<>5d /45 S45<   Ta4 /45 <5= /45 -a<, a6d 4av5 6/ ?556 <5=6s/ly, /45 la//5< adv55s. $ud>056/ -as <56d5<5d ?y /45 CFI 6 av<  /45 3ua0?as, ?u/ 6 a5al / /45 Cu /45 =0la6/. !56=5, /45 a5al ?y -</  =5 < a66ull6> /45 =6/056/ a0u6/. *6l@5 /45 s/ua/6 /4a/ a<s5 6 /45 !.E. !5a==@ C0a6y =as5  )4l 2'+2'  -45<56 /45 v56d< d50a6d5d /45 <5/u<6  /45 /46> sld, a6d /45<5?y 6d=a/5d a6 1+1

LLB 2A 

u65:uv=al d5s<5 6 /s a4/ ?5 >v56 0<5 /05 -/46 -4=4 / sa/sy /45 jud>056/ d5?/, a6d sus56d /45 056d6> 55=u/6  sal5  /45 <5 s5//l5056/  /45 jud>056/ d5?/ a6d, =6v5/456 /45 <s/6 /4a/ /45 d5lv5056/ a0u6/, a<5 /4a/ /45 d5=5as5d s/ll ad /45 u
2. R5=5/  =a< 6/ < a<<a/6 ?u/ as s5=u</y / sa/sa=/6  jud>056/ =<5d/ d5s 6/ a0u6/ / <5=lsu<5  =4a//5l 0a>5. S6=5 /45 =0a6y dd 6/ <5=5v5 /45 =a< < /45 u<s5  a<<a/6> /45 sa05, ?u/ 05<5ly as s5=u</y < /45 ul/0a/5 sa/sa=/6  /s jud>056/ =<5d/, /45 s/ua/6 u6d5< =6sd5a>5. . )ay056/  -a< da0a>5 =056sa/6 d5s 6/ <du=5 sa05 a6d 5:ual l5>al 55=/ as <0al <5=lsu<5. !av6> ?556 /45 a4/s, < ?5//5< s/ll, u6d5< ?l>a/6, / </5=/ /45 6/5<5s/  /45 =a< -65<, as -5ll as /s -6, ?y =la06>, as / dd, /45 =<<5s6d6> -a< da0a>5 =056sa/6 < /45 =a<. Su=4 a=/6  /45 =0a6y =a66/ <5as6a?ly ?5 =6s/4/s u6d5< /45 <5-a< jud>056/. '. S=56a< ?a<<6> <5=v5a>5d =4a//5l 6 a== a6y u6ad ?ala6=5 )a== C005<=al C0a6y "s. *ela Rama, 72 Phil 3L06.+ +. Su/ l5d -as < s5== 5<<0a6=5 a6d 6/ < <5s=ss6 < =a6=5lla/6  =6/ <5s=6d5d < =a6=5ll5d /45 =6/a>5 6 /45 au/0?l5 s <5=s5ly ?5=aus5 / ?<u>4/ su/ < s5== 5<<0a6=5, a6d -6, 6 /45 <5-a< Cvl Cas5 +8'. . )<5-a< jud>056/ 4as 6/ <5s=<?5d 5<d =v5<5d ?y 0ula< =u056/ -as 56/5<5d 6 ' D5=50?5< 19', a6d 6 1' $uly 19'1, a -</   55=u/6 -as ssu5d. T45 =0a6y /@ 6 u056/ u6/l 19 0ay  19+', 6 -4=4 da/5, "a6la "/056/ / 19 "ay  19+', a 5<d  1 y5a
1+2

LLB 2A 

F<0 /4s /5<0, /45 5<d =v5<5d ?y /45 d5?/ 0 /45 5<d du<6> -4=4 EO 2 -as 6 <=5, -4=4 s  y5a056/ / /45 /05 /45 =0a6y a//50/5d / s5ll /45 l5v5d <5ula< =u /45 5a  /45 <5s=</v5 5<d s55 als )al0a vs C5lda, 81 )4l '1. T4a/ ?56> /45 =as5, <5s6d56/ =0a6y =uld 6/ ?5 ?a<<5d ?y <5s=</6 <0 <=55d6> -/4 /45 55=u/6 sal5 u056/, =6sd5<6> /4a/ 5v56 /45 060u0 5<d  <0 8 D5=50?5< 19'1, /45 u/?<5a@  /45 )a== 7a<, /  $a6ua056/ 0ay ?5 55=u/5d ?y 0/6.  A vald 55=u/6 ssu5d a6d l5vy 0ad5 -/46 /45 5<d <vd5d ?y la- 0ay ?5 56<=5d ?y a sal5 /45<5a/5<. T45 sal5  /45 <5 u/  /45 -</  55=u/6 a6d l5vy -4=4 -456 ssu5d -5<5  vald. T4s <5s/s u6 /45 <6=l5 /4a/ /45 l5vy s /45 5ss56/al a=/ ?y -4=4 /45 <5056/ a6d /a@56 6/ =us/dy  /45 la-, a6d /4a/ a/5< / 4as  ?556 /a@56 <0 /45 d556da6/, 4s 6/5<5s/ s l0/5d / /s al=a/6 / /45 jud>056/, <<5s5=/v5  /45 /05 -456 / 0ay ?5 sld Su/45<6 Cal. L. C. vs. !/5l C., 9' Cal. 21, 222 Gv5<6056/  ).I. vs. E=4aus, 1 )4l 18. T4us,, a vald jud>056/ 0ay ?5 56<=5d ?y 0/6  -/46 + y5a056/ 0ay ?5 56<=5d ?y sal5  /45 <5056/. 8. A6sald vs. Fd5l/y, 6/ 6 6/ T45 =as5  A6sald vs. Fd5l/y a6d Su<5/y C0a6y  /45 )4l65 Isla6ds, GR N. L 28, A<l 2, 19+1, s 6/ 6 6/, < /45<5 /45 jud>056/ =<5d/< a//50/5d / =a<056/. 9. A0u6/ <5=5v5d <0 /45 )4l65 7a< Da0a>5 C00ss6 0us/ ?5 =<5d/5d / /45 3ua0?aHs a==u6/. T45 3ua0?as s4uld ?5 =<5d/5d /45 a0u6/  )'9.+ -4=4 /45 "a6la "/5 C00ss6 6 a==u6/  /45 =a<  Gaud56= 3ua0?a /4a/ 4ad ?556 s5;5d <0 / ?y /45 5650y ==ua6/ du<6> /45 -a<. T4s s4uld <5du=5 /45 <6=al a0u6/ s/ll du5 "a6la "/
1+

LLB 2A 

119. ABELLA (S. GON%AGA  G.R. N. '+' + )4l. 12

S5/50?5< 19, 191

Facts:

C<l A?5lla d50a6d5d s5== 5<<0a6=5  /45 =6/a 6 A<l 1+, 1921, -4=4 aa, la6d-65<, a6d C<l A?5lla, /56a6/, d 45<5?y 56/5< 6/ a =6/ =6d/6s Fa, as la6d -65<, d5s 45<5?y l5as5 /45 ll-6> d5s=<?5d a<=5l  la6d s/ua/5 -/46 /45 ju<sd=/6  Sa6 F5l5 N5< / C<l  A?5lla / us5 -/4 all /45 a=/v5 a6d assv5 5as5056/s /45<5, / -/ 5/=. T45 su4/ a<5s, a6d /y 5>4/ =56/a<5s. S5=6d. T45 l5as5 s4all 65d 6 /45 +/4  "a<=4 5v5 665/556 :ua =laus5, /45 -65< u6d55 / /45 /56a6/ /45 ull -65
 /45 la6d 6 :u5s/6 s 6/ a?slu/5, ?u/ =6d/6al /4a/ /45 =6d/6s 4av5 6/ ?556 =0l5d -/4, ?u/ vla/5d ?y /45 la//5<, -4 0ad5 /45 las/ ay056/ v5< a y5a< a/5< /45 ?l>a/6 4ad ?5=05 du5. Issue:

Is /45 s5=al =6/
)1,92.92 -4=4 /45 /56a6/ 4as 6- ad, a6d 4s <0s5 / ay <56/  /45 <50a66> 665/556 :ua =laus5, /45 -65< u6d55 / /45 /56a6/ /45 ull -65
1+'

LLB 2A 

las/ 6s/all056/s, /45 SC a<<v5d a/ /45 65v/a?l5 =6=lus6 /4a/ al/4u>4 6 /45 =6/
a 6/ sad =6/a vs. Ballls, ' )4l 8

1++

LLB 2A 

12. !EACOCK CO. (S. B*NTAL "AN*FACT*RIN"G CO. G.R. N. '''1  )4l. 2'

S5/50?5< 2 198

Fact:

1. Bu6/al, 5/ al <56/5d a 0a=465 <0 !5a==@ C0a6y < a /5<0  2 =al56da< 06/4s. 2. Bu6/al, 5/ al u6a?l5 / <5/u<6 /45 0a=465 a6d al5d / ay /45 l5as5. . T45 l-5< =u au>us/ 191. Issue:

Is /45 =6/
Held:

 #5s. 1. I/ -as s/ula/5d 6 /45 =6/
>
2. T45 =u C0a6y -as a6 6/al ay056/ < /45 )8 u<=4as5 <=5. . T45 =u
1+

LLB 2A 

NASIRIN, FATRIANE A. 121. "ACONDRA# & CO., INC. (S. BENITO AND OCA")O G.R. N. '1' 2 )4l. 2'

S5/50?5< 2', 19+

Fact:

T45 d556da6/s ad0/ 5a=4 a6d 5v5a/6 6 5a=4 a6d 5v5 =v5<5d ?y /45 /- =4a//5l 0a>5s s5=5d /45<56. *6 /45 alu<5   /45 d556da6/s / ay /45 /- 2 a6d 0<5 6s/all056/s 6 /45 u<=4as5 <=5  sad 5a>5s 55=u/5d 6 sad <5a>5d -5<5 sld a/ u?l= au=/6 / /45 la6/ -4=4 -as /45 6ly ?dd5< /45<5<. T45 asla/u<5 la6/ s 56//l5d / <5=v5< <0 /45 d556da6/s /45 u6ad ?ala6=5  /45 u<=4as5 <=5   sad 5
 745/45< < 6/ /45 <vs6s  La- N.'122  /45 )4l65 L5>sla/u<5 ?565/s 6 /4s =as5 /45 d556da6/s. Held:

 #5s. N/ =4all56>5d /45 55=/v565ss a6d /45 vald/y  /45 A=/. T45 6/5s 6 :u5s/6 a<5 4a6d > -4=4 a<5 avala?l5 5<5ssly /4a/ /45 s5ll5< -ll 4av5 6 a=/6 a>a6s/ /45 u<=4as5<, / <5=v5< /45 u6ad ?ala6=5 a/5< /45 <5<55056/ =6/al <vs6 s 6ull a6d vd.

1+

LLB 2A 

122. FELI GOC!AN AND SONS REALT# COR). (S. !EIRS OF RA#"*NDO BABA  G.R. N. 189'+

 Au>us/ 19, 2

Facts:

I6 19, D</5aI6/ a6d 2  45< =4ld<56, (=/<a6 Ba?a a6d G<5>< Ba?a sld a a<=5l  la6d / F5l G=4a6 a6d S6s R5al/y C<   //l5 a6d <5=6v5ya6=5 -/4 da0a>5s a>a6s/ G=4a6 R5al/y. T45y all5>5d /4a/ G=4a6 R5al/y  a6d /45< 0/45< a6d /- s?l6>s =66v5d 6 55=u/6> /45 5/a/6 =<5a/5d ?y la-, -4=4 <5s=<?5s 6 /56 y5a 6 /45 6a/u<5  a su/ < :u5/6>  //l5. Issue:

 745/45< < 6/ <0 /45 all5>a/6s  /45 =0la6/, /45<5 5s/s a =aus5  a=/6 / d5=la<5 /45 65s/56=5  /45 =6/<u6d  a?s56=5  a6y  /45 5ss56/al <5:us/5s  a vald =6/
I /45 a6s-5< s 6 /45 65>a/v5, /456 /45 ds0ssal  /45 =0la6/ 0us/ ?5 u45ld, /45<-s5, /45 ds0ssal 6 /45 ><u6d  <5s=</6 s 5<<65us ?5=aus5 a=/6s < /45 d5=la<u6d  a?s56=5  a6y  /45 5ss56/al <5:us/5s /45<5 d 6/ <5s=<?5. *6d5< A <5:us/5s =6=u< 1 =6s56/  /45 =6/ aa/6. T45 a?s56=5  a6y  /45s5 5ss56/al <5:us/5s <56d5v5 =6s56/  /45 av5 su=4 =6s56/. I6 /45< -al =6s56/ <5sus5s =aa=/y. T4us, /45<5 s sad / ?5 6 =6s56/, a6d =6s5:u56/ly, 6 =6/<55056/ s 56/5<5d 6/  ?y 65 6 ?54al  a6/45< -4 4as 65v5< >v56 40 au/4<;a/6 /45<5< u6l5ss 45 4as ?y la-  a <>4/ / <5<5s56/ /45 la//5<.

1+8

LLB 2A 

12. )!ILI))INE LA7IN B*S, CO. (S. CO*RT OF A))EALS G. R. N. 192

$a6ua
Facts:

O6  Au>us/ 199 la6/ Adva6=5 Ca/al C< 6v5s/<, 5/56d5d a la6 / d556da6/ )4l65 La-6 Bus C0a6y 45<5a/5< <55<<5d / as LA7IN, 6 /45 a0u6/  )8,,. aya?l5 -/46 a 5<d  65 1 y5a<, as 5vd56=5d ?y a C<5d/ A><55056/ E4?/s B / B'B. T >ua d=u056/s 1 A D55d  C4a//5l "a>5 -45<56 9 u6/s  ?us5s -5<5 =6s//u/5d as =lla/5a>5d ?us5s a6d as /45 sl5 ?dd5< /45<5, /45 a0u6/  )2,,. -as a==5/5d ?y /45 d5u/y s45<  =6du=/6> /45 sal5 a6d =<5d/5d / /45 a==u6/  d556da6/ LA7IN. T45<5a/5<, d5s/5 <55a/5d d50a6ds, /45 d556da6/s al5d / ay /45< 6d5?/5d65ss -4=4 //al5d   )1,'8',992.'2. T4us, /45 su/ < su0  065y, -45<56 /45 la6/  /45a/6 u6d5< /45 /- <0ss5056/ as / /45 ull s5//l5056/  /45 la6 ?l>a/6 ?y -ay   Sal5  /45 665 9 u6/sH ass56>5< ?us5s /45 <=55ds  -4=4 -ll ?5 =<5d/5d a>a6s/ /45 la6 a0u6/ as ull ay056/ /45<5 < 6 /45 al/5<6a/v5. T45 /<al =u /45 ?l>a/6 < 6d5?/5d65ss  d556da6/s ETING*IS!ED. CA <5v5
 745/45< < 6/ /45<5 -as da=6 56 a> ?5/-556 /45 aa>5d ?us5s / /45 <5s6d56/. Held:

N. SC a><55d -/4 /45 Cu /4a/ /@ la=5  ?5/-556 /45 a, <5 ?y /45 d5?/< / /45 =<5d/< as a6 a==5/5d 5:uval56/  /45 5<<0a6=5  /45 ?l>a/6. I/ 5/6>us45s /45 ?l>a/6 / /45 5/56/  /45 valu5  /45 /46> d5lv5<5d, 5/45< as a><55d u6 ?y /45 a<55056/, 5<5ss < 0l5d, < ?y /45< sl56=5, =6sd5< /45 /46> as 5:uval56/ / /45 ?l>a/6, 6 -4=4 =as5 /45 ?l>a/6 s //ally 5/6>us45d.J  Av5<6 a6 a><55056/   da=6 56 a>. A =6/  /45 06ds   /45 a -4=4 s /45 ?j5=/  /45 =6/  /45 06ds ?5/-556 /45 aus45d ?y da=6 56 a>.

1+9

LLB 2A 

12'. INS*LAR LIFE ASS*RANCE CO")AN#, LTD. (S. #O*NG G.R. N. 1'9'

$a6ua
Facts:

I6 D5=50?5<, 198, <5s6d56/ R?5, />5/45< -/4 4s ass=a/5s a6d = <5s6d56/s Ga?<5l LaO II, A6, A6/6 O6>6, Els5 D;6, #la6da Bay5<, C5=la (s a6d Ts Ba6@ J/45 Ba6@,J < ?<5v/y, <0 /45 L=a<s a0ly < )+,,.. O6 O=/?5< 1, 1991, I6sula< L5 a6d I6sula< L5 )56s6 Fu6d <0ally 6<05d #u6>  /45< 6/56/6 / a=:u<5 Q a6d 12Q, <5s5=/v5ly,  /45 Ba6@s u/s/a6d6> s4a<5s, su?j5=/ / du5 dl>56=5 aud/ a6d <5< d=u056/a/6. O6 O=/?5< 9, 1991, I6sula< L5 a6d #u6>, au/4<;5d / <5<5s56/ /45 /45< s/=@4ld5<55056/ "OA, -45<56 I6sula< L5 a6d /s )56s6 Fu6d a><55d / u<=4as5 8,8 =006 s4a<5s a6d 11,+2 =006 s4a<5s, <5s5=/v5ly, < a //al =6sd5s <5<5s56/a/6s a6d -a< ad6 =a/al  )1+,1',9., ? a //al 65/ - s4all 6us5 add/6al =a/al   )+,,. 6/ /45 Ba6@, a6d 2 I6sula< L5 a6d /s )56s6 Fu6d s4all u6d556=5 aud/ 6 /45 Ba6@ / d5/5<065 -45/45< /45 <vs6 < ),,. du?/ul a==u6/ 0ad5 ?y #u6> s su=56/. O6 $a6ua a6d 4s ass=a/5s l5d -/4 /45 R5>6al T<al Cua6s/ /45 Ba6@, I6sula< L5 a6d /s =u6s5l, A//y. $a=6/ $0565;, 5//655s, d=@5/5d as Cvl Cas5 N. 92'9. T45 =0la6/ all5>5s /4a/ u6d5< /45 "OA, I6sula< L5 s4uld aly /45 u<=4as5 <=5  )198,,. =<<5s6d6> / /45 ++Q  /45 u/s/a6d6> =a/al s/=@  /45 Ba6@ / #u6>s la6  )2,,. a6d ay /45 la//5< )12,,., <5<5s56/6> /45 <50a66> '+Q  /s u/s/a6d6> =a/al s/=@, -4=4 0us/  ?5 s5/ a>a6s/ /45 la6s  /45 /45< <5s6d56/s. T45 RTC ds0ss5d /45 =0la6/, 
 745/45< < 6/ /45 "OA s a =6/
Held:

N. T45 <5>6> <vs6s  /45 "OA 65>a/5 /45 5s/56=5  a 5<5=/5d =6/v56 ?y #u6> <v5 / ?5 /a/6  5//65< I6sula< L5 / u<=4as5, as -5ll as /45 =6=0/a6/ ?l>a/6  #u6> / =6v5y / / /45 s4a<5s, a<5 su?j5=/ / /45 ulll056/  /45 =6d/6s =6/a65d 6 /45 "OA. O6=5 /45 =6d/6s, <5<5s56/a/6 a6d  -a<a/6s u6d5< /45 =6/a/6 6 /45 a
LLB 2A 

 /45 Cvl Cd5 -4=4 <vd5s /4a/ J6 =6d/6al ?l>a/6s, /45 a=:us/6  <>4/s, as  -5ll as /45 5/6>us4056/ < lss  /4s5 al<5ady a=:u<5d, s4all d556d u6 /45 4a566>   /45 5v56/ -4=4 =6s//u/5s /45 =6d/6.J A6d -456 /45 ?l>a/6 assu05d ?y a aa/6 =a66/ ?5 56<=5d a>a6s/ 40 u6l5ss /45 =6d/6 s =0l5d -/4.

11

LLB 2A 

12+. CORONEL (S. CO*RT OF A))EALS G.R. N. 1+

O=/?5< , 199

Facts:

I6 198+, C<65l 55=u/5d a d=u056/ 56//l5d JR5=5/  D-6 )ay056/J 6 av<    Al=a / 55=u/5 a d55d  a?slu/5 sal5 as s6 as / 4as ?556 / < )1.+8" a/5< s45 ad )K d. B5=aus5  /4s, /45y =a6=5ll5d a6d <5s=6d5d /45 =6/ /45 )+,d. Al=aa6s/ /45 C<65ls a6d =aus5 /45 a66/a/6  a 6/=5  ls56d56s 6 /45 TCT. "a?a6a>, 6 /45 /45< 4a6d, =aus5d /45 a66/a/6  a 6/=5  adv5. RTC
 sal5. Held:

C6/ 6 F5?<55056/ =uld 6/ 4av5 ?556 a =6/ 6/ a6 a?slu/5 =6/4/ /45<5 a6d /456. "<5v5<, u6l@5 6 a =6/ al<5ady a><55d / s5ll /45 su?j5=/ <55 / /45< 6a05s a6d 005da/5ly /45<5a/5<, / 55=u/5 /45  -<//56 d55d  a?slu/5 sal5.

12

LLB 2A 

)ASANTING, RA# ANDRE7 B. 12. TO#OTA S!A7, INC. (S. CO*RT OF A))EALS G.R. NO. L11+

"A# 2, 199+

FACTS:

 A><55056/s ?5/-556 "<. Ssa & )6> B5<6a
"<. Lu6a L. Ssa -a6/5d / u<=4as5 a Ty/a L/5 A=5 ?u/ 4ad d=ul/y 6 6d6> a d5al5< s5ll6> a6 avala?l5 u6/. 7456 45 -as /ld u6 =6/a=/6> Ty/a S4a- /4a/ /45<5 -as a6 avala?l5 u6/, 45 a6d 4s s6 Gl?5, "5/< "a6la 6 1' $u65 1989. T45y 05/ /45<5 a Ty/a sal5s <5<5s56/a/v5 6a05d )6> B5<6au5s/ -uld us5 / 6 18 $u65 1989 / > / 4s 405 <v6=5 "a<6du:u5 a6d =5l5?65d a6 a><55056/ ?5/-556 40 a6d B5<6a<55d /4a/ /45 u<=4as5 <=5Hs ?ala6=5 -ll ?5 ad /4<u>4 BA F6a6=5Hs =<5d/ 6a6=6> -4l5 Gl?565d 6 4s ?54al /45 6a6=6> al=a/6 -/4 Ty/a S4a- a6d BA F6a6=5. O6 1+ $u65 1989, 45 a6d 4s s6 Gl?5v5 Ty/a S4a- /45 )4)1, d-6 ay056/ 6/al =as4 u/lay a6d 4s s6 s>65d /45 <6/5d (54=l5 Sal5s )<sal (S) N. 928 B5<6a =6d/6s F5  -/4u/ << 6/=5, a6d /4a/ al=a?l5 <=5 -ll ?5 /45 65 6 55=/ a6d <5val6> a/ s5ll6> /05. B5<6a 3u Gl?5<55d, ?u/ a/ 2 .0. /45 sa05 day. Ssa a6d Gl?5 <5ad5d < d5lv5 < a?u/ a6 4u<, B5<6a4 /s a>56/ "<. )6> B5<6aav5 0<5ss6 /4a/ B5<6a
LLB 2A 

 -/4 Ssa 6 /s ?54al, a6d / dd 6/ 0ad5 @6-6 / Ssa /4a/ B5<6a5s / "<. Ssa 1. T45 su0  )+,. < 05s 2. T45 su0  )1,. < 550la5s . T45 su0  ),. a//<65ys 55s lus )2,. la-y5<s / / /45 45a<6>  /45 =as5 '. T45 su0  )2,. / /45 45a<6>  /4s =as5 a6d / ay /45 =s/s  su/. Dssa/s5d -/4 /45 /<al =u056/ / /45 Cu056/  va /s 29 $uly 199' d5=s6. ISSUES/RULING:

Ty/a S4a- a5al5d d5=s6  Cu6al T<al Cu /45 ll-6> ssu5s, 1. 745/45< < 6/ a><55056/ s>65d ?y )6> B5<6a56/  Ty/a S4a- a6d "<. Lu6a Ssa =6s//u/5d a 5<5=/5d =6/<55056/ s>65d ?y Ssa a6d B5<6a /46>s 1 T45<5 -as 6 ?l>a/6 < Ty/a S4a- / d5lv5< /45 v54=l5 / Ssa a6d /4a/ /45 )4)1, 6/al =as4 u/lay dd 6/ s5==ally <55< / a sal5  v54=l5. 2 T45 d=u056/ dd 6/ s4- /45 055/6>  /45 06ds =6/50la/5d 6 A, "<. Ssa dd 6/ s>6 /45 a><55056/. Als, / s =l5a< <0 /45 a><55056/ /4a/ "<. B5<6a56/  Ty/a S4a- a6d / s 6=u0?56/ < Ssa / @6-  B5<6a<55056/ 0ay ?5 =6sd5<5d as a/a/6 s/a>5  /45 sal5 =6/a/6 /4a/ BA F6a6=5 dsa<v5d 4s =<5d/ al=a/6 a6d < 66 ay056/  /45 =6sd5u056/  Ty/a S4a- /4a/ /45 dsa<val  SsaHs =<5d/ 6a6=6> al=a/6 ?y BA F6a6=5 ?5=aus5 45 <5us5d / ay /45 ull u<=4as5 <=5, =aus6> =a6=5lla/6  /45 (S). "<5v5<, Ty/a <5/u<65d /45 )4)1, /4<u>4 a =45=@ /45y ssu5d / "<. Lu6a Ssa /s <5=5/ <v56 ?y Ty/a S4a-Hs =45=@   vu=45< s>65d ?y Ssa. T45 (S) -as 05<5 <sal a6d 6 v5-  /45 5v56/s a/5< / -as s>65d, /45<5 -as 6 d50a6da?l5 <>4/s < Ssa / as@ /45 v54=l5Hs d5lv5
1'

LLB 2A 

. 745/45< < 6/ "<. Lu6a Ssa s 56//l5d / da0a>5s. T45 Su<505 Cu  05s, as -5ll as ay056/ < a//<65yHs 55s a6d =s/s  su/, s6=5 /45 6ly ><u6d Ssa us5d / =la0 05s s / -as @6-6 / 4s <56ds, /-60a/5s, a6d <5la/v5s /4a/ 45  -as ?uy6> a Ty/a L/5 A=5 -4=4 /45y 55=/5d / s55 6 4s ?4/s. T45 Cu /4a/ 45 0>4/ 6/ ?5 a?l5 / ay  /s ull u<=4as5 <=5 a6d /45<5<5, 45 -as /45 65 40s5l -4 ?<u>4/ 50?a<>6> a?u/ a /46> -4=4 45 dd 6/ -6 y5/. T45 5//6  Ty/a S4a- s > /45 "a<6du:u5 RTCHs d5=s6 s <5v5
1+

LLB 2A 

12. ALFREDO (S. G.R. NO. 1''22+ '' SCRA 1'+

BORRAS $*NE 1, 21

FACTS:

Sus5s Al<5d -65d a a<=5l 6 la6d s/ua/5d 6 B<>y. Cul, "a?>a, !5<0sa, Ba/aa6. T45 Al<5d Sus5s 0a>5d /45 su?j5=/ la6d / /45 DB) < ),., a6d 6 s/5<  D55ds  Ba/aa6, a6d la/5< dd /45y  @6- /4a/ /45 Al<5ds 4ad s5=u<5d a dul=a/5 =y  OCT N. 28', /45 /a d5=la 6 -</6>, s u656<=5a?l5 u6d5< /45 S/a/u/5  F
1. 745/45< < 6/ /45 =6/ a6d su?s=<?5d ?y /45 a5d < ?y 4s a>56/. T45 5s/56=5  /45 <5=5/ da/5d 11 "a<=4 19, -4=4 s a 050d a/4. N, T45 Su?s5:u56/ Buy5s/d a/4.

1

LLB 2A 

128. A"ELIA S. ROBERTS (S. "ARTIN B. )A)IO G.R. NO. 11' +1+ SCRA '

FEBR*AR# 9, 2

FACTS:

T45 Sus5s )a -as /45 -65a>5 6 /45 <5a>5. S6=5 /45 =ul5 655d5d 065y / <5d550 /45 <5a>5, /45y 55=u/5d a D55d    A?slu/5 Sal5 v5< /45 <5a/6, /45 =< /45<5?y /45 ?565/s  a6 0l5d 65- l5as5. T45 l5ss55 -as ?l>5d / ay 06/4ly <56/als  8 / ?5 d5s/5d 6 /45 l5ss / a //al la?l/y  '1@.S45 d50a6d5d /4a/ )a va=a/5 /45 <55s a>a6s/ "a
 745/45< < 6/ /45 D55d  A?slu/5 Sal5s a6d C6/a>5 v5< /45 <5
N. A6 5:u/a?l5 0a>5 s 65 /4a/, al/4u>4 la=@6> 6 s05 <0al/y, <0 <  -5 a <5al <5 0ss?l5 < =6/a>5  /45 ll-6> <5:us/5s a<5 <5s56/ a. /45 a d5?/ ?y -ay  0a>5. T45 d5=sv5 a=/< s /45 6/56/6  /45 aa>5, /45 0a>< <5/a6s -65a>< / ay 4s ?l>a/6. I6 =6/4/  /45 v56d< a <5/< / <5u<=4as5 /45 <5al <5:u<5056/s < /45 <5u<=4as5. T45 alu<5  /45 v56d< a <5/< / 55<=s5 /45 <>4/ / <5u<=4as5 -/46 /45 a><55d /05 v5s/s u6 /45 v56d55 a <5/<, ?y 54/ / <5u<=4as5 <5sus5s a vald =6/ /4a/ 45 4ad <5u<=4as5d /45 <5
LLB 2A 

/45<5?y ad0//5d /4a/ /45 d55d  a?slu/5 sal5 55=u/5d ?y 40 a6d R?5a>5 45 4ad a=:u<5d -65 /4a/ /45 =6/a>5 u6l5ss /45<5 s a6 all5>a/6 a6d 5vd56=5  ala?l5 0s/a@5 6 /45 a
18

LLB 2A 

129. SANC!E% (S. "A)ALAD REALT# COR). G.R. NO. 1'8+1

DECE"BER 2, 2

FACTS:

R5s6d56/ "aalad -as /45 <5>s/5<5d -65<  ' a<=5ls  la6d l=a/5d al6> Ras Bul5va /4a/ "aalad -as 65  /45 =0a65s 45ld 6 / / "aalad / /45 65- ad06s/. $s5  6:u<5d a?u/ / a6d ds=v5<5d F5l=/ "a6all, "aaladHs <05< d<5=/< a6d >5655< /@ /450. O6 Nv50?5< 1, 1992, Nu5l "a>saysay 6 4s =aa=/y as )<5sd56/ a6d ?asaysay  I6=., a =<u5l "a>saysay, a=:u<5d -65 all 4s s4a<5s / Nv )<55s a>a6s/ N /45 56d56=y  /45 =as5, N
 745/45< < 6/ /45<5 s a vald sal5 ?5/-556 "aalad a6d N
RULING:

 A =6/al <0s, ?y vv5, / d < 6/ / d. T45 5ss56/al <5:us/5s  a vald =6/ aa/6. C6s56/ 0ay ?5 >v56 6ly ?y a 5al =aa=/y / >v5 =6s56/. I6 /45 =as5  ju<d=al 54 /s =5v56 ?y ">u5l "a>saysay, /45 565d < a6d 6 ?54al  "aalad 6 /45 d55d  a?slu/5 sal5. !-5v5<, du<6> /45 /<al, 45 ad0//5d / ?5 6 l6>5< =665=/5d -/4 "aalad ?5=aus5 45 al<5ady dv5s/5d all 4s 6/5<5s/s 6 sad =<, < /45 sa@5  a<>u056/, /45 s>6a/u<5s -5<5 >56u65, / -uld s/ll ?5 vda?l5 < la=@  au/4</y <5sul/6> 6 4s =aa=/y / >v5 =6s56/ 6 /45 a
19

LLB 2A 

1. CAR"EN DEL )RADO (S. S)O*SES CABALLERO G.R. NO. 1'822+

"ARC! , 21

Facts:

I6 a jud>056/ <56d5<5d 6 Cadas/6al T<al Cus/s/ //l5s   /45 l/s 6 av<  /45 Ca?all5<s. O6 $u65 11, 199, <5s6d56/s sld / 5//65<, Ca<056 d5l )6al C5 /45 l/ -as ssu5d 6ly 6 Nv50?5< 1+, 199, a6d 56/5<5d 6 /45 JR5>s/s/s a )5//6 < R5>s/<u6d /4a/ /45 =la05d a<5a -as su?s/a6/ally  5=5ssv5 /4a6 /4a/ <>6ally a><55d u6. T45y 0v5d < /45 u/<>4/ ds0ssal  /45 5//6 6 ><u6ds  <5s=</6 a6d la=@  ju<sd=/6. RTC d5=d5d 6 av<  5//65<. CA <5v5s/
 745/45< < 6/ <5s=</6 4as s5/ 6.  #5s. F< l6> -<6> <505dy, /45 1 y5a< 5<d 4ad 5<5d. )5//65 /45 5//6 < <5>s/s/s/s/  /45 5<d / l5 /45 a<<a/5 5//6 < <5v5- a6d =6sd5<6> /4a/ /45 <5s=<?5d 65y5a< 5<d 4ad l6> s6=5 5<5d, /45 d5=<55  <5>s/
1

LLB 2A 

RE"OTIN, ROSANIE ). 1. "O(IDO (S. )ASTOR  GR N. 1229

F5?
Facts:

)as/< all5>5d /4a/ 45 a6d "vd 55=u/5d a =6/<55d / s5ll a a<=5l  4s la6d 6 Cav/5. )as/< als all5>5d /4a/ /45 =6/5d /4a/ 45 al<5ady ad 0<5 /4a6 4al  /45 <=5 a6d /4a/ 45  -as -ll6> a6d <5ady / ay /45 ?ala6=5  /45 u<=4as5 <=5 ?u/ du5 / 5//655d /4a/ /45< <>6al 65>/a/6 < /45 sal5  4s <5 s5v5<55d /4a/ /45 su
 745/45< < 6/ /45 vald/y  a =6/
Held:

N, /45 vald/y  a =6/4/  <5s6d56/ / /45 <5du=/6  /45 u<=4as5 <=5 s =6=5<65d. O6 /45 <55056/  -4=4 -ll ?5 su?j5=/ / <5du=/6  /45 u<=4as5 <=5, s als 6/ =6d/65d 6 /45 ay056/  a6y 6s/all056/.

11

LLB 2A 

1. DE LEON (S. ONG G.R. N. 1'+

F5?
Facts:

D5 L56 sld  a<=5ls  la6d / O6>. T45 <5a>5d / R5al Sav6>s a6d La6 Ass=a/6. T45 aa>5. T45 d55d  Assu0/6  0a>5 s4all ?5 55=u/5d 6 av<  O6> a/5< /45 ay056/  u< 4u6d<5d /556 /4usa6d U'1+,V. O6> =0l5d -/4 /. D5 L56 4a6d5d /45 @5ys  / O6> a6d 6<05d /45 la6 =0a6y /4a/ /45 0a>5 4as ?556 assu05d ?y O6>. O6> 0ad5 s05 0<v5056/s 6 /45 <5 l5a<65d /4a/ /45 <55d /45 l=@s / /. O6> -56/ / /45 0a>5 =0a6y a6d l5a<65d /4a/ /45 0a>5 -as al<5ady ad a6d /45 //l5s -5<5 >v56 / (l<a. O6> l5d a =0la6/ < /45 6ull/y  s5=6d sal5 a6d da0a>5s. D5 L56 =6/56d5d /4a/ O6> d5s 6/ 4av5 =aus5  a=/6 a>a6s/ 40 ?5=aus5 /45 sal5 -as su?j5=/ / a =6d/6 -4=4 <5:u<5s /45 a<val  /45 la6 =0a6y a6d /4a/ 45 a6d O6> 6ly 56/5<5d a =6/
 745/45< < 6/ /45 a
Held:

 #5s, /45 aa/v5 <5slu/
12

LLB 2A 

18. S)S. BERNARDO B*ENA(ENT*RA AND CONSOLACION $OA3*IN ET AL. (S. CO*RT OF A))EALS ET AL. G.R. NO. 12

Nv50?5< 2, 2

Facts:

$a:u6 a6d La6d</ a<5 /45 a<56/s  /45 la6/s a6d /45 d556da6/s. T45y -uld l@5 / ?5 d5=la<5d 6ull a6d vd a? 6/ =5 /4a/ /45<5 -as =6sd5 /45<56, /465d / u6jus/ly d5<v5 /45 <5s/  /45 =0uls/0a/5. Issue:

 745/45< < 6/ /45 D55d  Sal5 a<5 vd < la=@  =6sd5
Held:

N, /45 d55ds  sal5 a<5 6/ vd < la=@  =6sd5 a6d vald =6/  /45 06ds as / <=5. I /45<5 s a 055/6>  /45 06ds  /45 a  /45 06ds  /45 a / d -/4 /45 5<5=/6  /45 =6/5s 6/ /45 5<<0a6=5  /45 =6/4/ / d50a6d /45 ulll056/ < =a6=5lla/6  /45 ?l>a/6 u6d5< a6 5s/6> vald =6/
1

LLB 2A 

19. )ENALOSA (S. SANTOS G.R. N. 1'9  SCRA +'+

 Au>us/ 2, 21

Facts:

)56alsa 56/5<5d 6/ /- =6/ / /45 s/ula/6s  /45 =6/al s5//l5
 745/45< < 6/ /45 =6/
Held:

N, /45 =6/  /45 06ds   Sa6/s a6d )56alsa 5<5=/5d /45 =6/
1'

LLB 2A 

1'. TING !O (S TENG G*I G.R. N. 111+

$uly 1, 28

Facts:

F5l T6> !. $<. "5 ! B ! a6d Lyda T6> ! B5l56; a>a6s/ /45< ?</45<, <5s6d56/ (=56/5 T56> Gu. T45 =6/<v5 !, a6d s4uld ?5 a 5a=4  /45 s?l6>s. )5//655d /4a/ /45< a/45< F5l T6> ! d5d 6/5s/a/5 6 $u65 2, 19, a6d l5/ u6 4s d5a/4 a6 5s/a/5.  A== / 5//65 Gu < /45 ?565/  /45 d5=5as5d F5l T6> !  -4, ?56> a C465s5 =/;56, -as /456 ds:ual5d / -6 u?l= la6ds 6 /45 )4l65s a6d /4a/ u6 /45 d5a/4  F5l T6> !, /45 <5s6d56/ /@ ss5ss6  /45 sa05 < 4s -6 5=lusv5 us5 a6d ?565/ / /45< 5=lus6 a6d <5jud=5. Issue:

 745/45< < 6/ /45 sal5 -as vd

Held:

N, /45 sal5 -as 6/ vd. A -as ?as5d 6 a 05<5 assu0/6, /45 <=5 4as 6/ ?556 <v56 / ?5 a s0ula/6.

1+

LLB 2A 

R*BIO, BETT# "ARIE AGNES S. 1'1. )ACIFIC O#GEN & ACET#LENE CO. (S. CENTRAL BANK  G.R. N. L21881

"a<=4 1, 198

FACTS:

)la6/ )a== Oy>56 a6d A=5/yl565 C. al5d -/4 /45 )4l65 T56/  /45 C56/655<6> C., I6=., OFall6 / =v5< /45 s4056/  a la6/ a6d -5<5 a<v5d. )la6/ as -5ll < /45 sa05 u<s5, al5d -/4 /45 )4l65 T5 6 /45 sa05 a0u6/  ,9'.. T45<5a/5<, /45 )4l65 T5 6 /45 a0u6/  ,9'. / =v5< /s *.S. dlla< =00/056/ a>a6s/ /45 l5//5<  =<5d/ 565d u6d5< <55 0a<@5/ 5 =6/6 5=4a6>5 6 /45 sad a0u6/. *6 la6/s al=a/6, /45 l5//5<  =<5d/ -as a056d5d / 6=<5as5 /45 a0u6/ ?y  ,91. / =v5< /45 5s/0a/5d <5>4/ a6d s4 =4a<>5s, / ?5 ll-5d as 6 /45 =as5  /45 <>6al l5//5<  =<5d/ -/4 /45 u<=4as5  <-a5 < a s0la< a0u6/.  As a <5sul/, /45 )4l65 T5  -/4 /45 C56/a6s/ /45 l5//5<  =<5d/ 565d u6d5< <55 0a<@5/ <-a5 =6/6 l5vy. T45 I6d556d56/ E6>655<6> C., I6=., OFall6, Ill6s, *.S.A., /45 ?565=aa6s/ sad l5//5<  =<5d/ 6 /45 su0s  19,2.'1 a6d '8,+9.+9 a6d /45 C6/656/al Ill6s Na/6al Ba6@ a6d T, =<<5s6d56/  /45 )4l65 T6 55.9 T45 la6/ ad u6d5< </5s/ / /45 C56/ /45 1+Q 0a<>6 55, /45 a0u6/ su>4/ / ?5 <5=v5<5d. T45 l-5< =u056/ 6 av<  /45 la6/ a6d a>a6s/ /45 d556da6/  /45 <5u6d  /45 a?v5 su0  ),89.'9. A 0/6 / s5/ asd5  jud>056/ ?y d556da6/ C56/ ?556 l5d a6d /45<5a/5< d565d, /4s a5al -as /a@56. ISSUE:

 745/45< < 6/ /45 =ll5=/6 0ad5 ?y /45 d556da6/ <0 /45 la6/ 6 /45 a0u6/   ),89. s vald.

1

LLB 2A 

HELD:

T45 a5al, as 5aua>5  /45 la- s =l5a<. A  0a<>6 55 0ay ?5 =ll5=/5d <0 Jall sal5s  <5>6 5=4a6>5 ?y /45 C56/56/ ?a6@s. I/ s -5lls5//l5d 6 u< la- /4a/ a =6/ aa/5s 40s5l / /, a6d /45 /45< / ay /45<5<5 a <=5 =5  06ds u6 /45 /46> -4=4 s /45 ?j5=/  /45 =6/v5<66> /45 <0  =6/ <6=l5 6 A05<=a6 la- /4a/ a6 a><55056/ ?y 65 a
1

LLB 2A 

1'2. GAITE (S. FONACIER  G.R. NO. L1182 2 SCRA 8

$*L# 1, 191

FACTS:

D556da6/a5lla6/ Isa?5l F6a=5<, -65< a6d< 4ld5<  11 <6 ld5 0656056/ 6 av<  /45 a6/5d F5<6a6d A. Ga/5, la6/a5ll55, as 4s / =la0s 6 a <yal/y ?ass. !56=5, /45 55=u/6  a >5656056/ =6v5y6> /45 d5v5l056/ a6d 5l/a/6  sad 066> =la0s 6/ /45 La =la0s  -4=4 45 5s/0a/5s / ?5 a<0a/5ly 2' 05/<= /6s  <6 <5. !-5v5<, F6a=5< d5=d5d / <5v@5 /45 au/4</y > -4=4 s /45 / =la0s, -4=4 u4/s a6d 6/5<5s/ v5< /45 2'KY /6s  <6 <5 /4a/ 4ad  ?556 5/ /45  C. a6d /s s/=@4ld5 =0a6y   -as u/ u ?y d556da6/s / s5=u<5 /45 ay056/  /45 )+,. ?ala6=5 .!56=5, a s5=6d  ?6d -as 55=u/5d -/4 /45 Fa< Eas/5<6 Su<5/y a6d I6su C. < a6 a0u6/  6/ l5ss /4a6 )+,., a6d /4a/, u / /45 s/ula/6 as << a><55d 6< 4ad /45 ?ala6=5 ?556 ad / 5//65< ?y <5s6d56/. T4us su=4 alu<5, <0/5d 5//65< / l5 a =0la6/ 6 /45 CFI  "a6la < /45 ay056/  /45  ?ala6=5 a6d /45< da0a>5s. T45 T<al Cu d556da6/ / ay /45 ?ala6=5  )+@   -/4 6/5<5s/. A/5<-a 0/ a6d a=ad50= 0/6 < a 65- /<al, l5d ?y a5ll55 Ga/5. T45 0/6 < =6/50/ -as 45ld u605</<us, -4l5 /45 <5s/  /45 0/6s -5<5 45ld u665=5ssa
 745/45< < 6/ /45 l-5< =u /4a/ /45 ?l>a/6  a5lla6/ F6a=5< / ay a5ll55 Ga/5 /45 )+,. ?ala6=5  /45 <=5  /45 <6 <5 6 :u5s/6s 65 -/4 a 5<d < /5<0 a6d 6/ 65 -/4 a sus56sv5 =6d/6, a6d /4a/ /45 /5<0 5<5d 6 D5=50?5< 8, 19++.

18

LLB 2A 

HELD:

 75 6d /45 =ually =<<5=/ 6 4ld6> /4a/ /45 s4056/ < l=al sal5   /45 <6 <5 s 6/ a =6d/6 <5=5d56/ < sus56sv5 / /45 ay056/  /45 ?ala6=5   )+,., ?u/ -as 6ly a sus56sv5 5<d < /5<0. 74a/ =4aa/6 s /45 a=/ /4a/ /s 5=a=y < ?l>a/us45d <0 /s d50a6da?l/y s su?  a u/u<5 a6d u6=5a/6 4ad 65v5< 5s/5d. T4a/ /45 as / <5val s su 6 5<<< 6 /45 d5=s6 a5al5d <0, -5 45<5?y a<0 /45 sa05, -/4 =s/s a>a6s/ a5lla6/s.

19

LLB 2A 

1'. SE(ENT! DA# AD(ENTIST (S. NORT!EASTERN "ISSION G.R. N. 1+'1

$uly 21, 2

FACTS:

T4s =as5 6vlv5s /- sus5d /5d <5d5=5ss4 /4<u>4 a =6/ / ?5 /45 all5>5d d655Hs su==5ss 6>  -65< -655s a>a6s/ <5s <5s6d5 6d56/s. 6/s. R5s6d5 R5s6d56/s 6/s,, 6 /45 /45< /45< 4a6d, 4a6d, a<>u5 a<>u5d d /4a/ /4a/ a/ /45 /05 /05  /45 d6a/ d6a/6, 6, 5//65<u6d /4a/ all /45 5ss56/al <5:us/5s  a =6/
 745/45< < < 6/ /45 d6a/6 d6a/6 -as vald.

HELD:

N. T45 d6a/6 -as vd ?5=aus5 /45 l=al =4u<=4 4ad 65/45< ju<d=al 5/ s6=5 / -as 65s/56/ a/ /45 /05 / -as 0ad5.

T45 Cua6;5d, 5//65a6 <>a6;a ;a/ /6 6 -as <5>s/ <5>s/5< 5<5d 5d a/ /45 S5=u< S5=u</ /5s 5s a6d E=4a6 E=4a6>5 >5 C00s C00ss s6. 6. !56=5 !56=5,, 5//65 5//65
18

LLB 2A 

1''. CA(ITE DE(ELO)"ENT BANK (S. S)O*SES LI" G.R. N. 119

F5?
FACTS:

O6 $u65 1, 1988, <va/5 <5s6d56/ Ll/a C4a6 L0, asss/5d ?y a ?<@5< 6a05d R505ds Ga/a6da6, 5<5d / u<=4as5 a <56> /5<0s a6d =6d/6s  /45 5<, L0 ad CDB ),. as O/6 "65y a6d -as ssu5d a6 =al <5=5/ da/5d $u65 1, 1988. !-5v5<, a/5< s05 /05 L0 ds=v5<5d /4a/ /45 su?j5=/ <56ally <5>s/5<5d 6 /45 6a05  )5<5=/ Gua6s6>, a/45<  0a>< Rdl Gua6s6>, u6d5< TCT N. 911'8. Rdl su==55d5d 6 4av6> /45 <5s/5<5d <5>s/5<5d 6 4s 6a05 u6d5< TCT N. 89, /45 sa05 //l5 45 0a>5d / CDB a6d <0 -4=4 /45 la//5 TCT N. 89 6 /45 ><u6d /4a/ /45 la//5<  -as 6al T<al Cu><5v5d ?y -4a/ -as =6sd5<5d a s5<us 0s<5<5s56/a/6 ?y  /45 CDB 6 /45< a?l/y / s5ll /45 su?j5=/ <55s a>a6s/ 5//656al T<al Cuus/ 29, 1989 ?y /45 L0 sus5s a6d -as <56d5<5d a d5=s6 6 /45< av< -4=4 -as u
 745/45< < 6/ <va/5 <5s6d56/ s 56//l5d / <5=v5< /45 ),. /6 065y  a6d 6/5<5s/ < da0a>5s /45<56.

HELD:

)<va/5 <5s6d56/s a<5 /4us 56//l5d / <5=v5< /45 ),. /6 065y ad ?y  /450. "<5v5<, s6=5 /45 l6>  /45 a=/6 < da0a>5s a>a6s/ 5//65al us/ 29, 1989, /45 da/5  l6>  Cvl Cas5 N. 38928, 6/ $u65 1, 1988, -456 5//654/ -4a/s5v5< / @55 /45 065y ad ?y val  /45 =0la6/ u6/l ully ad. I6d55d, Aul/y av56J =l5aa/6 / <5/u<6 -4a/ -as >v56 d5s 6/ ?5=05 l5>ally  d50a6da?l5.  7!EREFORE, /45 d5=s6  /45 Cu5s as a?v5 s/a/5d.

181

LLB 2A 

1'+. CRONICO (S. $.". T*ASON & CO., INC G.R. N N. L L+22

Au>us/ 2 2, 19

FACTS:

)la6/ Fl<56=a C<6= a6d d556da6/a5lla6/ Claud Ra0<5; 5<5ss5d /45<  -ll6>65ss / ?uy /45 l/ -65d ?y A5lla6/ $. ". Tuas6 & C. I6=. ?y s56d6> s5a 6<0a/6 =6=5<66> /45 a<5a, /45 <=5 a6d /45< /5<0s a6d =6d/6s  /45 =6/5/ >5/ /45 l5//5< a6d -56/ d<5=/ly / /45 =5  G<5>< A /45 l5//5< / B56ja06 Bau/s/a, !5ad  /45 R5al Es/a/5 D5a /4a/ / -as G<5>< As/s/5<5d <5>s/5<5d l5//5 /45 l5//5<, a5lla6/ Ra0<5; <=55d5d / /45 =5  B56ja06 Bau/s/a 6 /45 sa05 0<66> s/a/6> /4a/ 45 a==5/5d /45 =6d/6s s/a/5d 6 /45 a5lla6/ =0a6ys l5//5< a6d -as s0la< A 4s v5= 6 ?54al  a5lla6/ Ra0<5; -</5 /45 a5lla6/ =0a6y <5:u5s/6> /45 5a /4a/ /45 l/ su?j5=/  l/>a/6 ?5 sld / 45<. S45 /56d5<5d a =45=@ / =v5< /45 d-6 ay056/ -4=4 -as, 4-5v5<, <5/u<65d. <5/u<65d. O6 A<l ', 192, /45 a5lla6/ =0a6y s56/ a l5//5< / /45 la6/a5ll55 6<06> 45< /4a/ / 4ad d5=d5d / s5ll /45 l/ 6 :u5s/6 / a5lla6/ Ra0<5;. T4s /<>>5<5d /45 6s/a6/ su/. ISSUE:

 745/45< < 6/ 6/ 5//65< 4as ?5=05 ?5=05 /45 ?l>55 < =<5d/< =<5d/<  /45 <5s6d56/ <5s6d56/ =0a6y   ?y =0ly6> 
182

LLB 2A 

HELD:

T45 =6/56/6  /45 5//65< /4a/ s45 4as ?5=05 /45 ?l>55 < =<5d/<  /45 <5s6d56/ =0a6y ?5=aus5 s45 -as /45  d5lv56>, -5 6d /4a/ /45 Cu65d 6 /45 ?<5  /45 5//65<.  7!EREFORE, /45 d5=s6  /45 Cu
18

LLB 2A 

SAI)*DIN, IR(ING $R. C. 1'. ANG #* AS*NCION ET AL. (S. CO*RT OF A))EALS G.R. N. 1912+ 28 SCRA 2

D5=50?5< 2, 199'

FACTS:

O6 $uly 29, 198 a S5=6d A056d5d C0la6/ < S5== )5<<0a6=5 -as l5d ?y   A6> #u Asu6=6 a6d K54 T6>, 5/ al., a>a6s/ B??y Cu *6j56>, Rs5 Cu *6j56> a6d $s5 Ta6 ?5<5 /45 R5>6al T<al Cu6>, a06> /456 S/<55/, B66d, "a6la /4a/ /45y 4av5 ==u5d sad sa=5s s6=5 19+ a6d 4av5 ?556 <5l>usly ay6> /45 <56/al a6d =0ly6> -/4 all /45 =6d/6s  /45 l5as5 =6/ / s5ll /45 <50s5s a6d a<5 >v6> /450 <</y / a=:u<5 /45 sa05 /4a/ du<6> /45 65>/a/6s, B??y Cu *6j56> 5<5d a <=5   )0ll6 -4l5 la6/s 0ad5 a =u6/5< 5<  )+0ll6 /4a/ la6/s /45<5a/5< as@5d /45 d556da6/s / u/ /45< 5< 6 -</6> / -4=4 <5:u5s/ d556da6/s a==5d5d /4a/ 6 <5ly / d556da6/s l5//5<, la6/s -</5 /450 6 O=/?5< 2', 198 as@6> /4a/ /45y s5=y /45 /5<0s a6d =6d/6s  /45 5< / s5ll /4a/ -456 la6/s dd 6/ <5=5v5 a6y <5ly, /45y s56/ a6/45< l5//5< da/5d $a6ua /45 0a/5<al all5>a/6s  /45 =0la6/ a6d 6/5<s6> a s5=al d556s5  la=@  =aus5  a=/6.  A/5< /45 ssu5s -5<5 j65d, d556da6/s l5d a 0/6 < su00a056/ -4=4 -as ><55 u6 /45 /5<0s a6d =6d/6s  /45 <s5d sal5, 456=5, /45<5 -as 6 =6/><5v5d ?y /45 d5=s6, la6/s a5al5d / /4s Cu  /45 06ds ?5/-556 /45 a /45 sal5  /45 <55s -ll l@5-s5 al as /45<5 5s/s 6 jus/a?l5 ><u6d < /s a-a4/ / /45 Su<505 Cu =6sd5 sus5s 55=u/5d a D55d  Sal5 A665 D, )5//6 / /45 <5
18'

LLB 2A 

 As a =6s5:u56=5  /45 sal5, TCT N. 1+2+'T881 6 /45 6a05  /45 Cu *6j56> sus5s -as =a6=5ll5d a6d, 6 l5u /45<5, TCT N. 19+81 -as ssu5d 6 /45 6a05  5//65< 6 D5=50?5< , 199. O6 $uly 1, 1991, 5//65< as /45 65- -65<  /45 su?j5=/ <5 /4a/ /45 la//5< va=a/5 /45 <50s5s. O6 $uly 1, 1991, /45 l5ss55s -</5 a <5ly / 5//65< s/a/6> /4a/ 5//65< ?<u>4/ /45 <5a Cvl Cas5 N. 8'1+8 a66/a/5d 6 TCT N. 1+2+'T881 6 /45 6a05  /45 Cu *6j56>s. T45 l5ss55s l5d a "/6 < E5=u/6 da/5d Au>us/ 2, 1991  /45 D5=s6 6 Cvl Cas5 N. 8'1+8 as 0d5d ?y /45 Cu
 745/45< < 6/ /45 =6/4/  F
HELD:

N, A R>4/  F4/  F
18+

LLB 2A 

1'. ENRI3*E% DE LA CA(ADA (S. DIA% G.R. NO. L118

 A<l 1, 1918

FACTS: he defendant and the plaintiff entered into a #contract of option+ !hereb1 defendant 

a5lla6/ A6/6 Da; >a/5d 40s5l / s5ll sad 4a=56da < , 5ss. T45 la6/, 6 /45 /45< 4a6d 4as a><55d / ?uy sad <5<55d u<=4as5 <=5. S6 a/5< /45 55=u/6  sad =6/s/v56 =5 / =0ly -/4 /45 /5<0s  sad =6/
#hacienda+. he plaintiff refused to accept said certificate for a part onl1 of said #acienda+ upon the ground 5<6 that it !as onl1 a part of the #acienda de Pitogo+, and 5$6 under the contract he !as entitled to a transfer to him all said #acienda+. he /<al =u
/45 la6/ 456=5 /4s 5//6. ISSUE:

 745/45< < 6/ /45<5 -as a 5<5=/5d =6/
HELD: A, the sub=ect contract !as not, in fact, an #optional contract+ as that phrase is

>565 /45 sad =6/s/5<5d u6d5< /45 T<<56s sys/50, a6d /45 la6/ <0s5d / ay / /45 d556da6/ /45 su0  , , u6d5< /45 =6d/6s 6a05d, u6 /45 4a566>  /4a/ 5v56/. T45 =6/
18

LLB 2A 

1'8. R*)ERT SORIANO (S. BA*TISTA  GR. NO. L 1++2  SCRA 9'

DECE"BER 29, 192

FACTS:

Sus5s Bau/s/a <5s6d56/ -65d a a<=5l  la6d 6 /45 "u6=al/y  T5<5sa, <v6=5  R;al, =6/a66> , 222 s:ua<5 05/5<55d /4a/  /45 6a6=al =6d/6  /45 0a>55s -ll 5<0/, /45y 0ay  u<=4as5 sad la6d a?slu/5ly 6 a6y da/5 -/46 /45 /-y5a< /5<0  /4s 0a>5 a/ /45 a><55d <=5  , 9.. S05/05s a/5< 56/5<6> 6/ /45 a><55056/, /45 5//65<55d u6. !-5v5<, /45 <5s6d56/s dd 6/ ssu5 a <5=5/ a6d <5/u<65d /45 065y. T45 A//<65y  /45 5//65a6s/ /45 5//65a6 as@6> /45 CFI / a>5. T45 CFI  R;al
ISSUE:

 745/45< < 6/ /45 )5//65  /45 55=u/6  /45 d55d  sal5. HELD:

 #ES. T45 <5s6d56/ ?56> 0a>4/ / <5d550 /45 0a>5d <5<55056/ s a 0a>5 a6d =6/a6s a =us/0a4/   redemption, it has a special pro"ision !hich renders the mortgagor‘s right to redeem defeasible

a/ /45 5l5=/6  /45 0a>55s. T45<5 s 6/46> ll5>al < 00
bu1, allo!ed b1
sa05 =6sd5a>5 /s5l, -4=4 s ds/6=/ <0 /4a/ -4=4 -uld su ?556 a><55d u6 / 0a@5 u /45 56/<5 <=5   3,F00.00, should the option be eercised. he mortgagor‘s promise !as in the nature of a

=6/6u6> 5<, 66 -/4d a 5<d  /- y5aa>55s <s5 / a 5<5=/5d =6/
18

LLB 2A 

1'9. LO*RDES LI"SON (S. CO*RT OF A))EALS + SCRA 29

 A)RIL 2, 21

FACTS:

Sus5s 5<5d / s5ll / Lu4 /45< a>56/ "a<=sa

anche8. he agreed to bu1 the propert1 and ga"e them 20,000.00 as #earnest mone1+N the

<5s6d56/ s>65d a <5=5/ a6d >av5 45< 1 day /6 5<d / ?uy /45 <5a>5d / /45 Ra0s5s a6d as@5d 45< / ay /45  ?ala6=5  /45 u<=4as5 <=5 / s5//l5 /45 ?l>a/6 -/4 /45 la//5<. S45 a><55d / 055/ -/4 /45 <5s6d56/s a6d Ra0s5s / =6su00a/5 / / ay ?u/ /av5 <5s6d56/s =45=@s / ay /45 sad /a5s -4=4  -5<5 =6sd5<5d as a/a/6 ?5/-556 /45 sus5s a6d S*N(AR R5al/y D5v5l056/ C<
 745/45< < 6/ /45<5 -as a 5<5=/5d =6/5 / ?uy. I/ s 6/ a sal5  <5
 /45 <>4/ / u<=4as5. I/ s s0ly a =6/<55s -/4 a6/45< 54/ / ?uy 4s <5<55 / s5ll / ?u/ 45 d5s s5ll s05/46>. .5., /45 <>4/ < <vl5>5 / ?uy a/ /45 5l5=/6 < /6  /45 /45< aus46> =4a ?l>a/6 6 /45 5 /45 /6, asd5 <0 /45 =6sd5, a =6/<55 / /4/ 6 /45 su?j5=/ 0a//5<, ?u/ s 05<5ly a =6/v5s /45 /655 /45 <>4/ < <vl5>5  a==5/6> /45 5< a6d ?uy6> /45 <5
188

LLB 2A 

1+. ADELFA )RO)ERTIES INC. (S. CO*RT OF A))EALS 2' SCRA ++,

$AN*AR# 2+, 199+

FACTS:

)<va/5 <5s6d56/s a6d /45< ?</45s/5<5d CO O7NERS  a a<=5l  la6d 6 Las )as, =v5<5d ?y a TCT. $s5 a6d D06ad< sld /45< s4a<5 / Ad5la. T45<5a/5<, Ad5la 5<5ss5d 6/5<5s/ 6 ?uy6> /45 -5s/5<6 v56 / /45 la//5<. B5<5 Ad5la =uld 0a@5 ay056/s, / <5=5v5d su006s as a =as5 -as l5d a>a6s/ $s5 a6d D06ad< a6d Ad5la, ?5=aus5  a =0la6/ 6 a =vl =as5 ?y /45 6545-s a6d 65=5s  <va/5 <5s6d56/s 45<56. As =6s5:u56=5s, Ad5la, /4<u>4 a l5//5<, 6<05d /45 <va/5 <5s6d56/s /4a/ / -uld 4ld ay056/  /45 ull u<=4as5 <=5 a6d su>>5s/5d /4a/ /45y s5//l5 /45 =as5 -/4 /45< sad 6545-s a6d 65=5s. !-5v5<, Salud dd 6/ 455d /45 suggestionN respondent‘s informed
B5<6a
T45 RTC 6 "a@a/ ds0ss5d /45 =vl =as5. A 5- days a/5<, <va/5 <5s6d56/s 55=u/5d a D55d  C6d/6al Sal5 6 av<  C4ua, v5< /45 sa05 a<=5l  la6d. A//y. B5<6a /4a/ 6 v5-  /45 ds0ssal  /45 =as5, Ad5la s -ll6> / ay /45 u<=4as5 <=5, a6d <5:u5s/5d /4a/ /45 =<<5s6d6> D55d  A?slu/5 Sal5  ?5 55=u/5d. T4s -as >6<5d ?y <va/5 <5s6d56/s. O6 /45 /45< 4a6d, /45 <va/5 <5s6d56/s s56/ a l5//5< / Ad5la 56=ls6> /45<56 a =45=@ <5<5s56/6> /45 <5u6d  4al /45 /6 065y ad u6d5< /45 5=lusv5 /6 / u<=4as5, a6d <5:u5s/5d Ad5la / <5/u<6 /45 o!ner‘s duplicate cop1 of alud. $ut,
<va/5 <5s6d56/s l5d a =vl =as5 ?5<5 /45 RTC  )asay, < a66ul056/  =6/5s. T45 /<al =u
 745/45< < 6/ /45 a><55056/ ?5/-556 /45 a
HELD:

 #ES. T45 all5>5d /6 =6/ sld -45<5as 6 a =6/<55056/ /45 -65v6> /45 v56d< /45 <>4/ / u6la/5
189

LLB 2A 

SALA)*DDIN, REA BET! !. 1+1. E3*ATORIAL REALT# (S. "A#FAIR T!EATER  2' SCRA '8 Facts:

"a<=4 21 199

Carmelo - $auermann, Inc. 5#Camelo+ 6 used to o!n a parcel of land !ith t!o 2 s/<5y 

 ?uld6>s =6s/
<vs6 > "aya< a <>4/   / "aya<. "aya< l5d a C0la6/ ?5<5 /45 RTC   "a6la < a /45 a66ul056/  /45 D55d  A?slu/5 Sal5 ?5/-556 Ca<05l a6d E:ua/<al, ? s5== 5<<0a6=5, a6d = da0a>5s. T45 l-5< =u /45 sal5 a6d 4/ /45 <5a6s/ "aya<, claiming pa1ment of rentals or reasonable compensation for 'a1fair‘s use of th 5 su?j5=/ <50s5s a/5< /s l5as5 =6/5d /4a/ <5<5s56/6> /s5l as /45 -65<  /45 su?j5=/ <50s5s ?y <5as6  /45 C6/ <0 'a1fair‘s occupation thereof. he trial court dism ss5d /45 C0la6/ 4ld6> /4a/ /45 <5s=ss6  /45 D55d  A?slu/5 Sal5 dd 6/ =65< 6 E:ua/<al a6y v5s/5d < <5sdual <<5/a4/s. Issue:

 745/45< E:ua/<al s 56//l5d / ?a=@ <56/als.

Held:

N. I6 /45 =as5, /45<5 -as 6 <>4/  -65
in "ie! of a patent failure to deli"er the propert1 to the bu1er. $1 a contract of sale, #one of the

=6/ aa/5s 40s5l / / a6d /45 /45< to pa1 therefore a price certain in mone1 or its e@ui"alent.+ &!nership of the thing sold is a real right,( !hich the bu1er ac@uires onl1 upon deli"er1 of the thing to him #in an1 of 

/45 -ays s5=5d 6 a6y6> a6 a><55056/ /4a/ the possession is transferred from the "endor to the "endee.+ his right is transferred, not b1

=6/ sold #is placed in the control and possession of the "endee.+ :rom the peculiar facts of this case, / s =l5a< /4a/ 5//65< 65v5< /@ a=/ual =6/<l a6d ss5ss6  /45 <56;5d ?y la- as 5:uval56/ /

/45 d5lv5 sld, su=4 =6s/ 05<5ly <5su0/v5, s d5505d 65>a/5d ?y /45 alu<5  /45 v56d55 / /a@5 a=/ual ss5ss6  /45 la6d sld. I6 /45 case, 'a1fair‘s opposition to the transfer of the propert1 b1 !a1 of sale to A@uatorial !as a

l5>ally su=56/ 05d056/ /4a/ 55=/v5ly <5v56/5d /45 ass6>  /45 <5s / /45 -65<  /45 <5 / ?y <>4/  a==5ss6. C6s5:u56/ly a6d 056/ s4uld ?5l6> / /45 -65<  /45 <5 /4a/ 5<d. N/ 4av6> ?556 /45 -65<, E:ua/<al =a66/ ?5 56//l5d / /45 =vl  sld.

19

LLB 2A 

1+2. $"A !O*SE INC. (S. STA. "ONICA IND*STRIAL AND DE(T. COR). G.R. N. 1+'11

 Au>us/ 1, 2

B5<5 /45 Cu 6 a5al /45 D5=s6  /45 R5>6al T<al Cu
$"A !us5 I6=<s a6d La6 Ass=a/6, I6=. )655<. T s5=u<5 ay056/ /45<5, $"A 55=u/5d a <5al 5s/a/5 0a>5 v5< a a<=5l  la6d l=a/5d L/ N. ', Bl=@ N. 1, Su?dvs6 )la6 N. )sd + 3u5;6 C/y. T45<5 -as l@5-s5 /4<55s/<5y =005<=al a6d <5sd56/al ?uld6> -4=4  -as ==u5d ?y /56a6/s. *6 /45 alu<5  $"A / ay /s la6, /45 <5al 5s/a/5 0a>5 -as <5=ls5d 5/al R5d50/6 a6d A?slu/5 Sal5 6 -4=4 )655<, < a6d =6sd54/s v5< /45 <5 /45 0<v5056/s /45<56. O6 $u65 , 198 $"A, <5<5s56/5d ?y /s G5655< Rs/a Al?5 /45 ?uld6>s /45<56, 6 av<  S/a. "6=a, <5<5s56/5d ?y Eu>56 T<6dad. As a><55d u6 ?y /45 aav5 $"A /45 /6 / ?uy -/46 65 1 y5a< <0 /45 55=u/6  /45 D55d O A?slu/5 Sal5 6 < ?5<5 $uly 1, 198, -/4 a ><55d /4a/, 6 =as5 $"A aval5d  su=4 5/56s6, $"A -uld ?5 ?l>a/5d / ay a6 add/6al a0u6/ 5:uval56/ / .+Q a 06/4 as l:uda/5d da0a>5s, u6/l /45 -4l5 a0u6/ s ully ad a6d< /45 /6 s 6ally 55<=s5d. 7456 $"A al5d / <5u<=4as5 sad <5 a //al   ),,. a6d a0u6/  )+,. <0 A//y. Rsal5 Al?5
 745/45< < 6/ $"A !us5 I6= =a6 s/ll 55<=s5 /6 / ?uy -456 / al5d / ay S/a. "6=a I6dus/<al a6d D5v5l056/ C< /45 a><55d ay056/ < /45 <5
I/ s =l5a< /4a/ 5//65< al5d / 55<=s5 /s /6 6 < ?5<5 $u65 , 198. N5/45< dd 5//65< 55<=s5 /s /6 a6d ay /45 l:uda/5d da0a>5s / <5s6d56/ S/a. "6=a <0 $uly 1, 198 u / $u65 1988. T4s 05ll5d <5s6d56/ S/a. "6=a / 6<0 5//65< /4a/ ?5=aus5  /s alu<5 / 55<=s5 /s /6 / u<=4as5 /45 <5 /45 <56/als <0 /45 /56a6/s  /45 ?uld6>s. O6 F5?5s su=4 ay056/ s a =6d/6 <5=5d56/ / /45 55<=s5  /45 <>4/ / ?uy, 191

LLB 2A 

a6d /45 065y 0us/ ?5 /56d5<5d < 5<5d. A 05<5 6/=5  a6 6/56/6 / a==5/, <  a6 a==5/a6=5 -/4u/ su=4 ay056/ < /56d5<, d5s 6/ =6s//u/5 a vald =0la6=5. R5s6d56/ S/a. "6=as a==5/a6=5  /45 v5 =45=@s 6 /45 //al a0u6/  ),,. a6d /45 =as4 a0u6/  )+,. 6 $u65 , 1988, as a4/ -4=4 5//65< 4ad ?y /456 al<5ady ls/, a
192

LLB 2A 

1+. (AS3*E% (S. A#ALA COR). G.R. N. 1'9'

Nv50?5< 19, 2'

FACTS:

T45 (as:u5; sus5s sld / Ayala C<<55056/ "OA av5 /45 (as:u5; Sus5s a  0a<@5/ <=5 a/ /45 /05  /45 u<=4as5. By v<55 /  -4a/ <5val6> <=5 s4uld aly. T45 R5>6al T<al Cu4/   6 s5a
 745/45< < 6/ a4/   
 As s/a/5d 6 a4/   6 5d 5<d a6d a d5/5<065d <=5 a/ -4=4 /45 su?j5=/ l/s -ll ?5 5<5d < sal5 as connoted b1 the phrase #at the pre"ailing market price at the time of the purchase+. otabl1,

av5 /45 (as:u5; Sus5s /45 
 -456 Ayala <5j5=/5d /45< =u6/5<5<.

19

LLB 2A 

1+'. S)S GARCIA (S. CO*RT OF A))EALS G.R. N.12

 A<l 2 21

Facts:

O6 "ay 28, 199, la6/s sus5s Faus/6 a6d $s56a Ga<=a a6d sus5s "5l/6 a6d !5l56 Galv5; 45<56 a5ll55s a6d d556da6/ E05<55d / s5ll / /45 <05<, < T4<55 "ll6 O65 !u6d<5d S5v56/y T4usa6d T- !u6d<5d T-56/y ),1,22. )5ss, v5 + a<=5ls  la6d s/ua/5d a/ Ta6;a, Cav/5.  As a><55d u6, la6/s s4all 0a@5 a d-6 ay056/  Fv5 !u6d<5d T4usa6d )+,. )5ss u6 s>66>  /45 =6/us/ , 199 O65 "ll6 S !u6d<5d S5v56/y  T4usa6d T- !u6d<5d T-56/y )1,,22. )5ss 6 D5=50?5< 1, 199. O6 /s du5 da/5, D5=50?5< 1, 199, la6/s al5d / ay /45 las/ 6s/all056/ 6 /45 a0u6/  O65 "ll6 S !u6d<5d S5v56/y T4usa6d T- !u6d<5d T-56/y )1,,22. )5ss. S05/05 6 $uly 199+, la6/s 5<5d / ay /45 u6ad ?ala6=5, -4=4 4ad al<5ady   ?556 d5lay5d ?y 65 a6d UaV 4al y5a<, -4=4 d556da6/ <5us5d / a==5/. O6 S5/50?5< 2, 199+, d556da6/ sld /45 sa05 a<=5ls  la6d / 6/5565s G. Ba
 745/45< < 6/ /45 alu<5  /45 la6/s / ay /45 las/ 6s/all056/ 5/6>us45s /45 ?l>a/6  /45 d556da6/ / d5lv5< -65
 #5s. C6/<55056/ / ?5 a C6/a/6 / 55=u/5 a D55d  A?slu/5 Sal5 u6/l 5//65a/6  /45 v56d< / =6v5y //l5 <0 ?5=06> 55=/v5. S/<=/ly s5a@6>, /45<5 =a6 ?5 6 <5s=ss6 < <5slu/6  a6 ?l>a/6 /4a/ s s/ll 66 5s/56/ du5 / /45 664a566>  /45 sus56sv5 =6d/6.V D5la C5d / 55=u/5 a D55d  A?slu/5 Sal5 6 5//65
19'

LLB 2A 

1++. S)S SERRANO AND !ERRERA (S. CAG*IAT G.R. N. 191

F5?
FACTS:

Sus5s S5<<55d / s5ll 6 av<  <5s6d56/ Ca>ua/ a a<=5l  la6d a/ ₱1,+. 5< s:ua<5 05/5<. Ca>ua/ ad a a /45<56 <5s6d56/Hs <0s5 / ay /45 <50a66>  ?ala6=5. A/5< 0a@6> 0a@6> @6-6  4s <5ad65ss <5ad65ss / ay /45 ?ala6=5, ?ala6=5, <5s6d56/ <5s6d56/ <5:u5s/5d <0 <0 /45 5//65ua/ l5d a =0la6/ < s5== 5<<0a6=5 a6d da0a>5s. T45 T<al Cu 6 Aua/ Ca>ua/  ₱ 1, . ?56> a6 5a<65s/ 065y s>65d /45 5<5=/6   /45 =6/
 745/45< < 6/ /45 a
N. Av56 6 a =6/v56 6 l5u  a =6/ua/ u6 ull ay056/  /45 u<=4as5 <=5 as 5vd56=5d ?y /45 <5=5/. R5la/v5ly, 6 D55d  Sal5 4as ?556 55=u/5d as <  /45 6/56/6  /45 a 6 a=/ual < =6s/4, Ca>ua/Hs ay056/  /45 <50a66> ?ala6=5 -uld 4av5 ?556 a sus56sv5 =6d/6 s6=5 /45 /  a u/u<5 a6d u6=5
19+

LLB 2A 

SALI", SADIKOL A. 1+. LAFORTE%A, ET AL., (S. "AC!*CA  GR N. 1++2  SCRA '

$u65 1, 2

Facts:

R?5s/5<5d 6 /45 6a05  /45 la\/5 F5< < sal5. T45 5//65<55056/ s 05<5ly a l5as5 a><55056/ -/4 #option #option to purchas purchase+N e+N hence, it on ly >av5 /45 <5s6d56/ a <>4/ / u<=4as5 /45 su?j5=/ <5 u6 /450 a6y ?l>a/6 ?l>a/6 / u<=4as5 /. A6d A6d s6=5 /45 respondent‘s tender of pa1ment !as made after the lapse of the option agreement, his tender did 6/ >v5 <s5 / /45 5<5=/6 5<5=/6  a =6/
Issue:

1. 745/45< < 6/ /45 /56d5<  ay056/ ay056/ a/5< /45 las5  /45 /6 a><55056/ a><55056/ >av5 <s5 / /45 5<5=/6  a =6/ -4=4 /45 <5s6d56/ <5s6d56/ -uld ?5 6 ss5ss6  /45 <5
Held:

1. 745/45< 745/45< < 6/ 6/ /45 /56d5< /56d5<  ay056/ ay056/ a/5< a/5< /45 las5 las5  /45 /6 /6 a><550 a><55056/ 56/ >av5 >av5 <s5 / /45 5<5=/6  a =6/<55056/ s4-s /4a/ /45 /  /45 06ds u6 /45 /46> -4=4 s /45 ?j5=/  /45 =6/v5<66> /45 <0  =6/
19

LLB 2A 

2. 745/45< 745/45< < 6/ 6/ /45 s06/4 s06/4 5< 5<d d du<6> du<6> -4=4 /45 /45 <5s6d5 <5s6d56/ 6/ -uld ?5 6 ss5ss6  /45 <5 -4=4 /45 <5s6d56/ -uld ?5 6 ss5ss6  /45 <5 a <vl5>5 / ?uy < s5ll -/46 a6 a><55d /05 a6d a/ a d5/5<065d <=5. A6 /6 =6/v5<65d ?y /45 s5=6d a < a <=5 =5 u6 /45 <0ss<  /45 <0s5 s sua/6 6 /45 a
19

LLB 2A 

1+. SAN "IG*EL )RO)ERTIES )!. (S. S)O*SES !*ANG G. R. N. 129

1 $uly 2

Facts:

Sa6 ">u5l )<5<u6d /4a/ /45 /6 / u<=4a u<=4as5 s5 4ad al<5ady al<5ady 5<5 5<5d. d. A =0la =0la6/ 6/ < s5= s5=== 5<< 5<<0a6 0a6=5 =5 -as l5d l5d a>a6s a>a6s// /45 5//65< 5//65< a6d /45 la//5< l5d a 0/6 0/6 / ds0ss ds0ss /45 =0la6/ =0la6/ ?5=aus5 /45 alleged #eclusi"e option+ of the respondents lacked a consideration separate and distinct from

/45 u<=4as5 <=5 a6d -as /4us u656<=5a?l5 /45 =0la6/ dd 6/ all5>5 a =aus5  a=/6 because there !as no #meeting of the mind+ bet!een the parties and therefore the contact of  sale !as not perfected. perfected. he trial court granted the petitioner‘s motion and dismiss 5d /45 a=/6.

T45 <5s6d56/s l5d a 0/6 < <5=6sd5
Issue:

 745/45< < < 6/ /45<5 -as a 5<5=/5d 5<5=/5d =6/
Held:

 #5s. I/ s 6/ /45 >v6>  5a<65s/ 065y, ?u/ /45 <  /45 =6=u<<56=5  all /45 5ss56/al 5l5056/s  /45 =6/
 ?556 5<5=/5d. T4s s 5vd56/ <0 /45 ll-6> =6d/6s a//a=45d ?y <5s6d56/s / /45< l5//5<. T45 v5 <s5 / a 5<5=/5d sal5 ?u/ 05<5ly / a6 /6 < a6 a==5/5d u6la/5v6> <5s6d56/s /45 5=lusv5 <>4/ / ?uy /45 <5<55d u6 s s5a5 <vl5>5 -as 6/, 4-5v5<, 55<=s5d ?y /450 ?5=aus5 /45<5 -as a alu<5 / a><55 6 /45 /5<0s  ay056/. N =6/ < a <=5 =5 u6 /45 <0ss< 6ly  /45 <0s5 s su  valu5, u6l@5 6 sal5  -45<5 / 0us/ ?5 /45 <=5 =5 45<5  a6y  =6s =6sd d5< 5> a6y a6y < <  su=4 su=4 =6s =6sd d5< 5
198

LLB 2A 

1+8. TO)ACIO (S. CO*RT OF A))EALS GR N. 12

$uly , 1992

Facts:

T45 sus5s D5 (lla a<56/s6la-  Ta= -5<5 /45 <05< -65a>5d / Ayala I6v5s/056/ a6d D5v5l056/ C< / s5=u<5 a6 ?l>a/6  )+@. F< alu<5 / ay /4s -ll 0a@5 /45 0a>5 <5=ls5d a6d =6s5:u56/ly B)I a=:u<5d /45 <545s/ ?dd5<. Ta= -a6/5d / ?uy /45 <55/45<, /45y a<<v5d a/ )1.2+" as /45 u<=4as5 <=5,  -/4 Qd-6ay056/ a6d /45 ?ala6=5 aya?l5 6 =as4 u6 55=u/6  /45 D55d  Sal5. Ta= ad /45 6/al ay056/  )+@. B)I -</5 / Ta= a6d 6<05d 40 /4a/ 45 4ad u6/l $a6ua<55d / 5/56d u / $u65 . Ta= -as u6a?l5 / 055/ /45 d5adl65 s B)I -</5 a l5//5< / Ta=, -45<5 B)I d5=la<5d /s5l <55 / s5ll /45 <5 Ta= /4a/ 45 =uld =la0 /45 )+@ ?a=@ 6 /45 <0  a =as456al a><55056/ )1.2+", ?u/ B)I <5us5d. RTC I6 av<  Ta=, 6d6> /4a/ /45<5 s a 5<5=/5d =6/
 745/45< < 6/ /45 45<56 Su?j5=/ C6/
Held:

I/ s a C6/av5 <s5 / a 5<5=/ =6/  valu5 / s4- /4a/ /45 ?uy5< -as <5ally 6 5a<65s/, a6d >v56 / /45 s5ll5< / ?6d /45 ?a<>a6. I/ s =6sd5<5d a<55d 6 /45 ?j5=/ 4us5 a6d l/ 6 74/5 )la6s, a6d /45 <=5 a6d /45 0a665<  ay056/. N/46> 6 /45 / -/4 /45 <vs6  A
199

LLB 2A 

1+9. ADELFA )RO)ERTIES, INC (S. CO*RT OF A))EALS ET AL. G.R. N. 11128 2' SCRA ++

$a6ua
FACTS:

)<va/5 <5s6d56/s a6d /45< ?</45s/5<5d CO O7NERS  a a<=5l  la6d 6 Las )6as, =v5<5d ?y a TCT. $s5 a6d D06ad< sld /45< s4a<5 5as/5<6  /45 !estern portion of the propert1 from pri"ate respondents herein.
B5<6aa6s/ $s5 a6d D06ad< a6d Ad5la, ?5=aus5  a =0la6/ 6 a =vl =as5 ?y /45 6545-s a6d 65=5s  <va/5 <5s6d56/s 45<56. As a =6s5:u56=5, Ad5la, /4<u>4 a l5//5<, 6<05d /45 <va/5 <5s6d56/s /4a/ / -uld 4ld ay056/  /45 ull u<=4as5 <=5 a6d su>>5s/5d /4a/ /45y s5//l5 /45 =as5 -/4 /45< sad 6545-s a6d 65=5s. Salud dd 6/ 455d /45 su>>5s/6 <5s6d5nt‘s informed /450 /4a/ 6 v5-  /45 ds0ssal  /45 =as5, Ad5la s -ll6> / ay /45 u<=4as5 <=5, a6d <5:u5s/5d /4a/ /45 =<<5s6d6> d55d  A?slu/5 Sal5 ?5 55=u/5d. T4s -as >6<5d ?y <va/5 <5s6d56/s. )<va/5 <5s6d56/s s56/ a l5//5< / Ad5la 56=ls6> /45<56 a =45=@ <5<5s56/6> /45 <5u6d   4al /45 /6 065y ad u6d5< /45 5=lusv5 /6 / u<=4as5, a6d <5:u5s/5d Ad5la / return the o!ner‘s duplicate cop1 of alu d. Ad5la al5d / su<<56d5< /45 =55s. T45 /<al =u
sal5

 745/45< < 6/ /45 a><55056/ ?5/-556 a
HELD:

T45 a><55056/ ?5/-556 /45 a4 / <vd5d < au/0a/= <5s=ss6  /45 =6/5d / <5/u<6 ss5ss6 < -65a/6. 7/4 /45 a?s56=5   su=4 a s/ula/6, al/4u>4 /45<5 s a <vs6 6 /45 <505d5s avala?l5 / /45 aally ?5 65<<5d /4a/ /45 a
LLB 2A 

=5 -65
21

LLB 2A 

1. !EIRS OF CECILIO CLA*DEL (S. CO*RT OF A))EALS, !EIRS OF "ACARIO CLA*DEL ET. AL. G.R.N. 8+2'

$uly 12, 1991

Facts:

Basl als @6-6 as JC5=lJ Claud5l, a=:u<5d <0 /45 Bu<5au  La6ds, L/ N. 12  /45 "u6/6lua Es/a/5 Su?dvs6, l=a/5d 6 /45 ?la=6  "u6/6lua, R;al, -/4 a6 a<5a  1,1 s:ua<5 05/5s/ N. +9+. !5 du/ully ad /45 <5al 5s/a/5 /a5s /45<56 u6/l 4s d5a/4 6 19.  T45<5a/5<, 4s -d- JBaslaJ a6d la/5<, 45< s6 $s5, 65  /45 45<56 5//65a/6 /4
 745/45< < 6/ a =6/
Held:

T45 a ?5<5 su=4 =6/4/s v5< a =5a6s/ -40 /4a/ =la0s s  ?<u>4/ =a66/ <5s56/ a6y <  su=4 sal5 a6d 456=5 4as 6 05a6s / 56<=5 /45 =6/a/6s d556d6> < /45< 5vd56=5 u6 /45 u6asss/5d 050 =5.

22

LLB 2A 

TE(ES, C!ERR# "AE C. 11. S)O*SES DAILON (S. CO*RT OF A))EALS & SABESA$E, $R. GR N. 89

F5?
FACTS:

R5s6d56/ Ru5u6d Dal6,  -4 4-5v5< d565d /45 a=/. )5//65< =6/56ds /4a/ /45 s>6a/u<5 u6d 6 /45 d=u056/ -as a <>56a/u<5 -as 4s /45 sal5 -as 6vald s6=5 / -as 50?d5d 6 a )<va/5 D=u056/. T45 Cu056/ 6 av<  <5s6d56/ u4ld6> /45 vald/y  /45 sal5. !56=5, 5//65< l5d a6 a=/6 / a66ul a6d s5/ asd5 /45 sad d5=s6. ISSUE:

 745/45< < 6/ a sal5  la6d 50?d5d 6 a )<va/5 D=u056/ s vald.

HELD:

 #5s, /45 sal5  la6d s s/ll vald. T45 65=5ss/y  a )u?l= D=u056/ s/a/5d 6 A
2

LLB 2A 

12. *NI(ERSAL ROBINA S*GAR "ILLING COR). (S. !EIRS OF ANGEL TE(ES G.R N. 128+' 89 SCRA 1

S5/50?5< 18, 22

FACTS:

T- a<=5ls  la6d -5<5 -65d ?y A6d<5s A?a6/. 7456 45 d5d, 4s 45a< "ll6> C0a6y, I6=. *)S*"CO, a6d  A6>5l ". T5v5s -4=4 -5<5 6/ <5>s/5<5d. Du5 / *)S*"COHs 655ds, T5v5s v55 /4a/ /45 ay056/  <5al <5a< "ll6> C<4 sal5. T45 sad <56al T<al Cu /4a/ /45 /s/5< /45 sal5 s 6/ a/al s6=5 a =6/ a
 745/45< < 6/ /45 <5s6d56/s 4av5 5s/a?ls45d a =aus5  a=/6 a>a6s/ 5//65<

HELD:

 #5s. R5s6d56/s 4av5 5s/a?ls45d a =aus5  a=/6 a>a6s/ 5//65< ?5=aus5 /45 E/ sld a6d /45<5<5 ?6ds /44 /45 =6/s/5<5d, / d5s 6/ a5=/ /s vald/y. B56> =6s56sual 6 6a/u<5, / s ?6d6> ?5/-556 /45 a
2'

LLB 2A 

1. L*NETA "OTOR CO")AN# (S. DI"AGIBA  G.R. N. L11  SCRA 88'

D5=50?5< , 191

Facts:

Du5 / u6ad <=5  /45 /4/ <0 5//65< Lu65/a "/< C0a6y, d556da6/s A6>5l D0a>?a a6d Na/vdad N<5l ssu5d a <0ssuaa>5s -5<5 55=u/5d s5a /- /<55d 6 /45 <0ssa/6 ?u/ / s5=u<5 /45 s5;u<5  /45 /- /a>5d -/4 a 056/ /4a/ 0ay ?5 <56d5<5d 6 /45 =as5. B5=aus5  /45 va>u5 6a/u<5  /45 all5>a/6s =6/a65d 6 /45 =0la6/, /45 =u /4a/ s6=5 =4s6> / <5=ls5 /45 0a>5s 55=u/5d, u5< <5=v5< /45 ?ala6=5  /45 u<=4as5 <=5. )5//65< a5al5d / /45 Cu
 745/45< < 6/ /45 =0a6yHs 5//6 s a vla/6  A
Held:

 #5s, /45 =0a6yHs 5//6 s a la>a/6 2 =a6=5l /45 sal5 a6d  <5=ls5 /45 0a>5 6 /45 /46> sld. T45 aa6s/ /45 u<=4as5< / <5=v5< a6y u6ad  ?ala6=5  /45 u<=4as5 <=5 6=5 a <505dy 4ad al<5ady ?556 =4s56. A==ly, a6y  a><55056/ / /45 =6/
2+

LLB 2A 

1'. )A"ECA 7OOD TREAT"ENT )LANT (S. CO*RT OF A))EALS & DB) G.R. N. 1'+ 1 SCRA 281

$uly 1', 199+

Facts:

)5//65< )A"ECA 7d T<5a/056/ )la6/, I6=. ?/a65d a la6 <0 <5s6d56/ DB). By v / ay /45 la6 ?y 6s/all056/. A =4a//5l 0a>5 -as als 55=u/5d v5< 5//65a>5, a6d, as sl5 ?dd5< 6 /45 u?l= au=/6, u<=4as5d /45 <5=ls5d <56al T<al Cu
 745/45< < 6/ A /45 ?ala6=5. Held:

NO. A4 Aa6s/ /45 u<=4as5< / <5=v5< a6 u6ad ?ala6=5  /45 <=5, -45<5 /45 v56d< /s / <5=ls5 /45 =4a//5l 0a>5 6 /45 /46> sld, s4uld /45  v56d55s alu<5 / ay =v5< /- < 0<5 6s/all056/s, /4s <vs6 s s5==ally al=a?l5 / a sal5 6 6s/all056/s.

2

LLB 2A 

1+. %A#AS (S. L*NETA "OTORS COR). G.R. N. L+8

O=/?5< 2, 1982

FACTS:

)5//65< Eu/< %ayas, $<, u<=4as5d 6 6s/all056/ ?ass a 0/< v54=l5 <0 "<. R:u5 Es=a /45 d5al5<  <5s6d56/ Lu65/a "/< C0a6y. T45 0/< v54=l5 -as d5lv5<5d / /45 5//65< -4 ad /45 6/al ay056/ a6d 55=u/5d a <0ss <=5, 6 av<  <5s6d56/ Lu65/a "/< C0a6y. T45 <0ss /45 ),92. d5?/. T s5=u<5 /s ay056/, /45 5//65< 55=u/5d a =4a//5l 0a>5 6 /45 su?j5=/ 0/< v54=l5 6 av<  /45 <5s6d56/. A/5< ay6> a //al a0u6/   ),1'8., /45 5//65< -as u6a?l5 / ay u /45 <5s6d56/ Lu65/a "/< C0a6y / 5/a>5. T45 0/< v54=l5 -as sld a/ a u?l= au=/6 -/4 /45 <5s6d56/ Lu65/a "/< C0a6y as /45 4>45s/ ?dd5< 6 /45 a0u6/  )+,.. S6=5 /45 ay056/s 0ad5 ?y 5//65< lus /45 )+,. <5al;5d <0 /45 <5=lsu<5  /45 =4a//5l 0a>5, /45 //al a0u6/ =uld 6/ =v5< /45 ),92. a0u6/  /45 <0ss4/ u / /45 Su<505 Cus 6s/5ad  a<06> /45 =/y =u
 745/45< < 6/ a d5=56=y a0u6/ a/5< /45 0/< v54=l5 4as ?556 sld a/ u?l= au=/6 =uld s/ll ?5 <5=v5<5d ?y <5s6d56/ =0a6y  HELD:

N, d5=56=y a0u6/ a/5< /45 0/< v54=l5 4as ?556 sld a/ u?l= au=/6 =uld 6 l6>5< ?5 <5=v5<5d ?y <5s6d56/. T45 <6=al a6d a>56/ <5la/6s4 s =l5a<. Bu/ 5v56 assuming that the #distinct and independent entit1+ theor1 of the pri"ate respondent is "alid, the 6a/u<5  /45 /
/45<5<5, Es=a E6/5<<s5s ass>65d /s <>4/s vs^vs /45 sal5 / <5s6d56/ Lu65/a "/< C0a6y, /45 6a/u<5  /45 / Es=a E6/5<<s5s a6d %ayas, $<. dd 6/ =4a6>5 a/ all. As ass>655, <5s6d56/ Lu65/a "/< C0a6y 4ad 6 ?5//5< <>4/s /4a6 ass>6< Es=a E6/5<<s5s u6d5< /45 sa05 /
2

LLB 2A 

*NDING, ABD*RASID N. 1. "AN*EL C. )AGTAL*NAN (S. R*FINA DELA CR*% (DA . DE "AN%ANO G.R. N. 1'9+

S5/50?5< 1, 2

FACTS:

I6 $uly 19'

PA C6//alu6a6 a6d -5  T5d< "a6;a6 6 a 4us5 a6d l/ =s/6> 1,8 -/4 )1+ as D) a6d )1+ as 06/4ly 6s/all056/

I005da/5 ==ua/6 5/5s su5<5d l5av5 /45 <50s5s 5a=5ully  I6 D5= 199 - R5s6d56/ s/5d ay6> /45 6s/all056/s -/4u/ 5la6a/6. O6ly 12,9+ 4as  ?556 ad - )5//65< ass5 <5l>usly u6/l s45 -as 6<05d ?y )a/<= /4a/ 45Hs 6 l6>5< 6/5<5s/5d 6 =6/6u6> /45 =6/<55056/ / sus56d /45 ay056/ 5<d ?u/ /45<5 -as 4a4 d50l/6 I6 F5? 199 P l5//5< / va=a/5 -4=4 s45 >6<5d I6 A<l 198 P=0la6/ < u6la-ul d5/a65< -4=4 /45 "TC >4/  ss5ss6 s a=/ =5as5d / ?5 a l5>al <>4/, a6d ?5=a05 ss5ss6 ?y 05<5 /l5 / /45 RTC, /45 a><55056/ =uld 6/ ?5 au/0a/=ally <5s=6d5d s6=5 /45<5 -as d5lv56;5d <5s6d56/Hs <>4/ / =6/6u5 ==uy6> u60l5s/5d /45 <5
28

LLB 2A 

ISSUE:

 7N "a=5da La- s al=a?l5  7N /45<5 s a vald <5s=ss6

HELD:

 #5s. T45 CA =<<5=/ly v5<6s sal5s  <5al 5s/a/5 6 6s/all056/, s al=a?l5 6 /45 <5slu/6  /4s =as5. T4s =as5 <>6a/5d as a6 a=/6 < u6la-ul d5/a65<. R5s6d56/ s all5>5d / ?5 ll5>ally -/44ld6> ss5ss6  /45 su?j5=/ <56;5s /45 <>4/  /45 s5ll5< / =a6=5l /45 =6/a/6  /45 v56d< / =6v5y //l5 <0 a=:u<6> ?6d6> <=5. T45 Cu<55s -/4 5//65< /4a/ /45 =a6=5lla/6  /45 C6/<55s / su=4 =a6=5lla/6. !-5v5<, su=4 =a6=5lla/6 0us/ ?5 d65 6 a== <>4/s 6 =as5 45 d5aul/s 6 /45 ay056/  su==55d6> 6s/all056/s a T ay,  -/4u/ add/6al 6/5<5s/, /45 u6ad 6s/all056/s du5 -/46 /45 //al >4/ s4all ?5 55<=s5d ?y /45 ?uy5< 6ly 6=5 6 5v5
29

LLB 2A 

1. L*ISA F. "CLA*G!LIN (S. CO*RT OF A))EALS G.R. N. L+++2

O=/?5< 1, 198

FACTS:

)5//65< Lusa "=Lau>4l6 s5ll5< a6d <va/5 <5s6d56/ Ra06 Fl<5s ?uy5< 56/5<5d 6/ a =6/<55056/, -4=4 -as a==5/5d ?y /45 =u<55d /4a/ Fl<5s s4all ay )+, u6 s>66>  /45 a><55056/ a6d /45 ?ala6=5 6 2 5:ual 6s/all056/s aya?l5 6 $u65 , 198 a6d D5=50?5< 1, 198. Fl<5s als a><55d / ay )1,  06/4ly <56/al u6/l /45 ?l>a/6 s ully ad < /45 us5  /45 su?j5=/ 0a//5<  /45 d55d  =6d/6al sal5. T45y  als a><55d /4a/ 6 /45 5v56/ Fl<5s als / =0ly -/4 4s ?l>a/6s, /45 5//65< -ll ?5 56//l5d / /45 ssua6=5  a -</  55=u/6 <5s=6d6> /45 d55d  =6d/6al sal5 a6d all /45 ay056/s 0ad5 -ll ?5 <5/5d 6 av<  /45 la6/. O6 O=/?5< 1+, 198, 5//65< -</5 / Fl<5s d50a6d6> ay056/  /45 ?ala6=5 6 < ?5<5 O=/?5< 1. T4s d50a6d 6=lud5d /45 6s/all056/ du5 6 $u65  a6d D5=50?5< 1, 198. O6 O=/?5< , Fl<5s s56/ a l5//5< s>6y6> 4s -ll6>65ss a6d 6/56/6 / ay /45 ull ?ala6=5. O6 Nv50?5< , 5//65< l5d a 0/6 < -</  55=u/6 all5>6> /4a/ Fl<5s al5d / ay /45 6s/all056/ du5 6 $u65 198 a6d als al5d / ay /45 06/4ly <56/als <0 /4a/ da/5. S45  a/ /45 sa05 /05 a =55 /45 56/<5 ?l>a/6 6=lud6> /45 D5=50?5< 198 6s/all056/. T45 /<al =u /4a/ /45 d5lay 6 ay056/ -as 6/ a vla/6  a6 5ss56/al =6d/6 -4=4 -uld -a<5
 745/45< / s 65:u/a?l5 / =a6=5l /45 =6/5a/6.

21

LLB 2A 

HELD:

 #ES, /45<5 s al<5ady su?s/a6/al =0la6=5 ?y Fl<5s -/4 /45 =0<0s5 a><55056/. "<5 06;5s /45 v56d4/ / =a6=5l /45 =6/ula< 6s/all056/ ay056/s. Bu/ 6 =as5s -45<5 l5ss /4a6 2 y5av5 /45 ?uy5< a > /4a/ u6d5< /45 /5<0s  a><55056/ /45 D5=50?5< 1 6s/all056/ -as du5 -456 6 O=/?5< 1+ 5//65< d50a6d5d ay056/  /45 ?ala6=5 6 < ?5<5 O=/?5< 1, 5//65< =uld =a6=5l /45 =6/ 5//655/45< -/4 4s 0/6 < <5=6sd55a/6. !-5v5<, al/4u>4 45 4ad 0ad5 a vald /56d5<  ay056/ -4=4 <5s54/s as a  v56d55, 45 dd 6/ ll- / -/4 =6s>6a/6 < d5s/  /45 su0 du5 -/4 /45 =ua/6 ?5=aus5  4s alu<5 / d5s/ /45 a0u6/ du5  -/4 /45 =u
211

LLB 2A 

 (ALDE%, ART $OSEF S. 1. OL#")IA !O*SING, INC. (S. )ANASIATIC TRA(EL COR). AND "A. NELIDA GAL(E%#CASIANO G.R. N. 1''8

$a6ua
Facts:

T45 ?j5=/ 6 l/>a/6 s a =6d06u0 u6/ sld a/ /45 <=5  )2,',. aya?l5 6 6s/all056/s a/ /45 us/ 8, 198', la6/ Oly0a !us6>, I6=. a6d d556da6/ "a. N5lda Galv5;#=asa6 56/5<5d 6/ a C6/<55d / s5ll /45 la//5< =6d06u0 u6/. )u la65 /=@5/s ?u>4/ ?y la6/ <0 d556da6/ )a6asa/= T5d /4a/ a< <0 =0ly6> /45 /5<0s a6d =6d/6s  sad C6/ 06/4ly 6s/all056/s -4=4 as  $u65 2, 1988 a0u6/5d / )1,92','+.+2. D50a6d / ay /45 sa05 -as s56/ / d556da6/ "a. N5lda Galv5;  #=asa6, ?u/ /45 la//5< al5d / s5//l5 45< ?l>a/6. F< alu<5  d556da6/ / ay 45< ?l>a/6 la6/ all5>5dly <5s=6d5d /45 =6/ ==u5d ?y d556da6/ )a6asa/= T5s a6d <5as6a?l5 <56/als < /45 u6/ <0 $uly 28, 1988 a/ /45 /45 5s/56=5  /45 C6/ / )1,9','+2.82 6 a==6al T<al =u ?556 <50a/u<5ly l5d -/4u/ 5//65< va "5/<  ?a6@ Cas45 <5s6d56/s / =6s>6 a/ /45 dssal  /45 =u056/  /45 /<al =u
 745/45< < 6/ /45 55=/  /45 l6>  /45 6/a<al a=/  <5s=ss6 a//a=45d /45<5/  vs^vs /45 <5:u<5056/s  R.A. N. ++2. Held:

T45 6/a<al a=/  <5s=ss6 0us/ ?5 a==0a65d ?y /45 <5u6d  /45 =as4 su<<56d5<  valu5. T45 a=/ual =a6=5lla/6  /45 =6/ /45 <5=5/  /45 ?uy5<  /45 6/=5  =a6=5lla/6 < d50a6d < <5s=ss6 ?y a 6/a<al a=/ a6d /45 ull ay056/  /45 =as4 su<<56d5< valu5.

212

LLB 2A 

11. "ONONSONG (S. ESTI"O G.R. N. 1 '' SCRA 8

$u65 2+, 2

Facts:

 All5>5dly, Gu5va<. T45 <5s6d56/s, /45 $u0a> ss/5 < /45 a4/  <5<5s56/a/6. RTC al =4aal <>4/ / a/05 < /45 45a6s/ Gu5va<
 745/45< < 6/ 5//65 s a =-65<  /45 <5
T45<5 -as 6 5vd56=5 <5s56/5d / 5s/a?ls4 /4a/ Nava<< a=:u<5d /45 <5 45< 0a<<a>5. T45<5 s 6 ?ass aly6> /45 <5su0/6 u6d5< Au056/ /4a/ /45 <5al.  75 l@5-s5 6d 6 ?ass < /45 /<al =u/05s. As s5d / a dss/6 6/5< vvs ?y lu=  /45 06ds 2 d5/5<06a/5 su?j5=/ 0a//5< a6d  <=5 =5
21

LLB 2A 

12. DISTA$O (S. CO*RT OF A))EALS G.R. N. 1129+'

Au>us/ 2+, 2

Facts:

 A?5/6a/5d 65  45< s6s, Ruu, / ?5 /45 ad06s/s d50a6d5d ss5ss6  /45 la6d -65d ?y Ruu. *6 4s <5usal, /45y l5d ?5<5 RTC a =0la6/ < R5=v55d /4a/ Ruu =a66/ a=:u<5 /45 a<=5ls  la6d ?5=aus5 /45 Cvl Cd5 <4?/s /45 ad06s/ /45 sa05. Issue:

 745/45< < 6/ /45 =6/56/6  /45 5//65
Held:

*6d5< aa6s/ u<=4as6> <55056/ s 6/ a?slu/5. I/ d5s 6/ aly  /45 <6=al =6s56/s / /45 sal5   <556/ < ad06s/65d ?y   A?5/av5 =6s56/ / /45 sal5  /45 <55d /4a/ Ruu Ds/aj 50ly5d  5vd56=5 / su?s/a6/a/5 4s all5>a/6s.

21'

LLB 2A 

1. OLAG*ER (S. )*R*GGANAN $R. G.R. N. 1+89 2 +1+ SCRA ' Facts:

T45 <5s6d56/ -as /45 -65<  s4a<5s  s/=@s  Bus65ss C<. 45 -as a=/v5 6 /45 l/=al s/6 a>a6s/ "a<=s d=/a/ /45 ss?l/y  4s a<<5s/ a6d d5/56/6 ?y /45 0l/a 4s a//<65ys6a=/ L=s6, $a:u6 a6d !l56a < /45 u<s5  s5ll6> a6d / 4s s4a<5s  s/=@s -/4 Bus65ss day. Du<6> /45 /<al, 5//65< /5s/5d /4a/ 45 a><55d / 55=u/5 /45 S)A 6  /4a/ 45 -as a s/=@4ld5<  Bus65ss day, 6 5v56/  a 0l/aa6s/ /45 s/6. T45 a5 /45 S)A ?5<5 E0l )u>a6a6, /45 =<5< <5>s/5<5d as s/=@4ld5<. !5 d50a6d5d /4a/ <5s6d56/s <5s/<5 / 40 ull -65a6s/ )u>a6a6 a6d L=s6 / d5=la<5 as ll5>al /45 sal5  s4a<5s  s/=@. !5 all5>5d /4a/ <5s6d56/ 5=55d5d 4s au/4</y  u6d5< /45 S)A. S)A 6ly al5d 6 a?s56=5 a6d 6=aa=/y. RTC ds0ss5d a6d u6d /45 sal5   s4a<5s ?5/-556 40 a6d <5s6d56/ L=s6 -as vald. Issue:

 745/45< < 6/ /45 CA 5<<5d 6 /4a/ /45<5 -as 5<5=/5d sal5.

Held:

)5//65< su>4/ / 0s5 a s/<=/ =6s/ /45 d56/6   /45 - u6@6-6 -/4u/ l5av6> a6 a>56/ / ad06s/5< 4s <5 d5a0u/5, <d>al/y a6d =vl 6/5 /45 6s/a6=5s =v5<5d ?y /45 /5<0s a?s56=5 a6d 6=aa=/y as <vd5d 6 /45 S)A  6 av<  L=s6. I/ s a >565 /45 v556/s / d s5== a=/s  ad06s/5< 65=5ss/a/5d /45 a6/056/  65 ?y /45 =u
21+

LLB 2A 

1'. "A!ARLIKA )*BLIS!ING COR). (S. TAGLE G.R. N. ++9'

$uly 9, 198

Facts:

GSIS -65d a a<=5l  la6d -/4 a ?uld6> a6d <6/6> 5:u056/ 6 )a=, "a6la. I/  -as sld / "a4a4 "a4a /45 u?l= / ?d 6 a u?l= au=/6. A day ?5<5 /45 s=45dul5d ?dd6>,  Adl Cal=a, /45 )<5sd56/  "a4aav5 /45 GSIS G5655< R0a6 Cav5 a not to 'aharlika sa1ing #old $idding. *iscuss !ith me.+ o!e"er, the public bidding took

la=5 as s=45dul5d a6d /45 <5l5, /45 -5  GSIS R5/<5056/ Dvs6 C45. "a4al5 s4uld 4av5 ?556 ds:ual5d <0 ?dd6> < /45 GSIS <5l5 -5<5 56//l5d / /45 <5
 745/45< < 6/ /45 <5s6d56/s a<5 56//l5d / /45 <5
Held:

N. T45 sal5 / /450 -as a>a6s/ u?l= l=y. F /4a/ /45y dd 6/ >v5 /45 0<5ss6 / "a4a /45 <sal < a =0<0s5 a><55056/. T45 a=/  /45 >5655< s ?6d6> 6 /45 GSIS. S5=6d, A /45 <54 /45 05da/6  a6/45<. T45 Su<505 Cul5 a6d 4s -5 a<5 ds:ual5d <0 ?dd6> 6 /45 <56> / /45 GSIS ?5=aus5 / >v5s /45 0<5ss6 /4a/ /45<5 -as l/=s 6vlv5d 6 /45 sal5. I/ s 6/ 65=5ssa4 /45 ad a/4.

21

LLB 2A 

 AD$*L, AL#SSA T. 1+. FERNANDE% (S. TAR*N G.R. N. 1'88

Nv50?5< 1', 22

Fa=/s

 A s46d -as <>6ally =v5<5d ?y a OCT, =-65d ?y /45 F5<6a6d5; s?l6>s. 2   /45 + s?l6>s, A6/6 a6d D505/<a, sld /45< <5s5=/v5 s4a<5s / /45 sus5s Tas/5<5d a6d a66/a/5d 6 /45 OTC. La/5<, /45 =-65s/5<5d la6d -/4 5=4a6>5  s4a<5s. A06> /45 as. I/ -as s/ula/5d 6 /45 d55d /4a/ /45 a6;5 a6d <5s5=/ /45 sal5 6 av<  Sus5s Ta5l F5<6a6d5; 5=4a6>5d 4s s4a<5 6 /45 26d s46d / /45 s4a<5s  4s =-65  A6>5l a6d /45 Sus5s Ta5l a6d sus5s Ta5l a6d la/5< 6 4s 455l -as s/ll alv5, Sus5s Ta4/ /45 a5l <5us5d / 455d /45< d50a6d. A/5< /45 d5a/4  A6>5l, Sus5s Ta5s RTC
 745/45< < 6/ /45 /a>5.

Held:

)5//65 / /450, /45y -5<5 6/ 6/5d  /45 sal5, ?u/ l5a<65d a?u/ / 6ly -456 /45y <5=5v5d /45 su006s < /45 a4/ / <5d550 /45 <5 <vs6s  /45 Cvl Cd5 # 0ay 55<=s5 /45 <>4/  <5d50/6 6 =as5 /45 s4a<5s  all /45 /45< =-65
I6 /4s =as5, it is @uite clear that respondents are petitioners‘ co -65 ?556 =6su00a/5d ?5<5 5//655l F5<6a6d5;. By /45 /05 5//65  A
21

LLB 2A 

 (ILLA)ANDO, R!O(IL A. 1. N#CO SALES COR)ORATION (S. BA FINANCE COR). G.R. N. 19'

 Au>us/ 1, 1991

Facts:

Ny= Sal5s C<5655< s Ru6 #a, s 56>a>5d 6 /45 ?us65ss  s5ll6> =6s/ a6d R56a/ F5<6a6d5; 45<56a/5< <55<<5d / as /45 F5<6a6d5;5s,  ?/4 a=/6> 6 ?54al  Sa6s45ll C< <vl5>5s -4=4 Ny= 4ad -/4 BA F6a6=5 C< Sa6s45lls s/ da/5d =45=@ -4=4 -as a B)IDava B /45 ds=u6/6> <=5ss a><55d u6, Ny=, /4/a/5d /45 =45=@.  A==0a6y6> /45 5=4a6>5  =45=@s -as a D55d  Ass>6056/ 55=u/5d ?y Ny= 6 av<  BA F6a6=5 -/4 /45 =6<0/y  Sa6s45ll. Ny= -as <5<5s56/5d ?y Ru6 #a, -4l5 Sa6s45ll -as <5<5s56/5d ?y /45 F5<6a6d5; ?</45 -as /45 a<5=/5d =45=@. A/ /45 ?a=@ /45<5 a6d  5v56056/ -as /45 C6/6u6> Su<5/y s4 A><55056/ -45<5?y /45 F5<6a6d5;5s u6=6d/6ally >ua5  a6y a6d all 6d5?/5d65ss   Ny=. T45 B)I =45=@, 4-5v5<, -as ds46<5d ?y /45 d /45 6u0?5< 181+, -4=4 -as a>a6 ds46<5d -456 / -as <5s56/5d < ay056/. D5s/5 <55a/5d d50a6ds, Ny= a6d /45 F5<6a6d5;5s al5d / s5//l5 /45 ?l>a/6 -/4 BA F6a6=5, /4us <0/6> /45 la//5< / 6s//u/5 a6 a=/6 6 =u ?556 s54 a6 a /4a/ /45 6/5<5s/ s4uld
 745/45< < 6/ /45 ass>6< s la?l5 / /s ass>655 < /s ds46<5d =45=@s.

218

LLB 2A 

Held:

 A6 ass>6056/  =<5d/ s /45 <=5ss  / /45 <>4/  /45 ass>6< / /45 ass>655, -4 -uld /456 ?5 all-5d / <=55d a>a6s/ /45 d5?/<. I/ 0ay ?5 d65 5/45< >565<usly, 6 -4=4 =as5, /45 ass>6056/ 4as a6 55=/ s0la< / /4a/  a sal5.  A== / A6<v56d< -a<al/y a6d /45 56<v56d< s4uld  ?5 45ld a6s-56<v56d< s 6d55d la?l5 < /45 6vald/y  -4a/5v5< 45 ass>65d / /45 ass>655v56d55. T45 d5=s6 a5al5d <0 s  AFFIR"ED.

219

LLB 2A 

1. FRANCISCO CRISOLOGO ET AL. (S. ISAAC CENTENO ET AL. G.R. N. L21'

Nv50?5< 2, 198

Facts:

O6 $a6ua a6d C6sla=6 Fl<56/6 l5d 6 /45 Cu, La>, Il=s Su<, 6 /45 ><u6d /4a/ /45 v56d4/  <5u<=4as5 -/46 /45 5<ds s/ula/5d 6 /45 /- =6/ a/ -4=4 /45 5//654 $ud>5 F4 $ud>5 F5l 3. A6/6, ><u6d /4a/ /45 0va6/s 4ad 6/ ?556 duly 6/5d  /45 45a<6>. O6 0/6 ?y /45 5//65<u6d /4a/ /45 v56ds/5<5d 0al  /45 45a<6>, /45 l-5< =u056/ 6 /45 a5al s5//6> asd5 /45 l-5< =u /4a/ /45 v56dally 6/5d  /45 5//6 a6d /45 45a<6>, a6d /4a/ /45 O a6d < us. A==ly, a/5< /45 v56d6> /4a/ /45 /- =6/a>5s as s5=u</5s < usu<us la6s.  A/5< /<al, /45 l-5< =u /4a/ <5s6d56/s all5>a/6 -as su?s/a6/a/5d ?y /45< 5vd56=5. $ud>056/ -as <56d5<5d 6 av<  /45 <5s6d56/s. Issue:

 745/45< < 6/ /45 a5lla6/s =6/56/6 /4a/ /45 l-5< =u /4a/ /45 Os /45<5a/5< /a@56, 6=lud6> /45 v56d asd5 /45 O /45 =as5 <5566> a6d us, as -5ll as /45 <=55d6>s /45<5a/5< /a@56 6=lud6> /45 d5=s6   O=/?5< 2, 19, a<5 6ull a6d vd. Held:

 
=6slda/6  -65s/ -45<56 /45 v56d< a <5/< 0us/ ?5 6a05d <5s6d56/ 6 /45 =a/6 a6d //l5  /45 5//6 < =6slda/6  -65056/  /45 Cu asd5 /45 O<u6d /4a/ /45 l-5< =us u056/ -as <56d5<5d 6 av<  /45 <5s6d56/s, -5<5 vald, ?56> 6 a== <vd5d < 6  A
22

LLB 2A 

18. )ATRICK C!*A )ENG !IAN (S. CO*RT OF A))EALS G.R. N. L1+

D5=50?5< 19, 198'

Facts:

">u5l C. (565 !a6 < /56 y5a -45<5 45 =6du=/5d 4s sa-0lls a6d lu0?5< ?us65ss 6 /45 ><u6d l<. !5 a6d 4s a0ly ==u5d /45 s5=6d l< as <5sd56=5. O6 "ay 2+, 198, a/5< /45 s5=6d l5as5 a><55056/ 4ad 5<5d,  (565<55d / ay (5655sJ  )2, lus a//<65ys 55  )2, s4uld (565
 745/45< < 6/ C4uaHs al56a/6 6 /45 =6/al <5al/y -/4u/ /45 -5s =6s56/. Held:

T45 =6/56/6 4as 6 05</. T45 sad ?uld6> a6d 0<v5056/s 6 /45 l5as5d la6d 0ay ?5 /<5a/5d as 5v5<65d ?y /45 l5as5 =6/
221

LLB 2A 

19. "ARI")ERIO CO")AIA NA(IERA, S.A. (S. CO*RT OF A))EALS G.R. N. L'2'

D5=50?5< 1', 198

Facts:

I6 19' )4l65 T  I6/5<=5a6 -as =00ss65d / l@ < a v5ss5l a6d 45 u6d /45  v5ss5l JSS )aJ  "a<05< avala?l5. )4l65 a6d *66 au/4<;5d T5> / 65>/a/5 < /s =4ala6d, a J*6<0 T05 C4a4 /s a>56/s N. & $. (lassuls L/d. a6d "a//45-s 7<>4/s6, Bu5, L/d. / ?5 <55<<5d / s0ly as "a//45-s, <5<5s56/6> I6/5<=5a6 S46> C<4 / 05<5ly a=/5d 6 ?54al  /45 <5al =4a4 "a//45-s /4a/ /45 v5ss5l J)AOIJ 4ad sal5d <0 !s6@a6> a/ 66/05 6 "a<=4 2, 19+ a6d /4a/ / 4ad l5/ 6 4<5 a/ /4a/ /05 a6d da/5 u6d5< /45 *6<0 T05C4a4 /45 la/5 ay056/s < /45 =4a5d ?y (lassuls -/4u/ =0056/ < </5s/, sad a>56/ 6/5d "a//45-s, ?y  /5l5 6 A<l 2, 19+ /4a/ /45 s4-65 /45 v5ss5l <0 C4a sad C4a a6d all l5>al =la0s. Issues:

 745/45< < 6/ <5s6d56/s 4av5 /45 l5>al =aa=/y / ?<6> /45 su/ < s5== 5<<0a6=5 a>a6s/ 5//65< ?as5d 6 /45 =4a<55d u6 >v5s 5//65< a <>4/ / <5s=6d /45 =4a
I6 /45 la-  a>56=y -/4 a6 u6ds=ls5d <6=al, /45 Cvl Cd5 6 A56/ a=/s 6 4s -6 6a05, /45 <6=al 4as 6 <>4/  a=/6 a>a6s/ /45 556/ 4as =6/a6s/ /45 <6=al. I6 su=4 =as5 /45 a>56/ s /45 65 d<5=/ly ?u6d 6 av<  /45 5s ?5l6>6> / /45 <6=al. T45 <vs6s  /4s a56/. T45 /4 a6 6/5<05da4 /45y -5<5 /45 a=/ual <6=als 6 /45 =4a a6y  a=/6 a>a6s/ /45 adv5 a 6 / -4=4 s =6/d =us/0s, u?l= l=y < u?l= 