EN BANC
[G.R. No. 48941. May 6, 1946. ]
NORBERTO L. DILAG, as administrator of the intestate estate of Laureano Marquez, Petitioner, v. THE LEGAL HEIRS OF FORTUNATO RESURRECCION ET AL., Respondents.
Vicente J. Francisco, for Petitioner.
Maano S. Gatmaitan and Jose Borlongan, for Respondents.
SYLLABUS
1. PARTIES; PARTY WITH WHOM OR IN WHOSE NAME A CONTRACT HAS BEEN MADE FOR BENEFIT OF ANOTHER; SCOPE OF SECTION 3 OF RULE 3. — Section 3 of Rule 3 of the Rules of Court which says that "a party with whom or in whose name a contract has been made for the benefit of another . . . may sue or be sued without joining the party for whose benefit the action is presented or defended," refers to any contract — bilateral or unilateral — enforcible in court. Article 1254 of the Civil Code says that a contract exists from the moment one or more persons consent to be bound with respect to another or others to deliver something or to render some service. A deed of sale or mortgage is usually a unilateral contract in the sense that only the vendor or mortgagor signs it. Likewise a promissory note is a unilateral contract in the sense that only the promisor or maker signs it. But these do not mean that the signer is the only party to that contract and the only one entitled to sue thereon. The obligee is as much a party to the contract as the obligor, for there can be no obligor without an obligee; and as a matter of course it is the obligee who has the right to sue on and enforce the obligation.
2. MORTGAGE; FUTURE PROPERTY; CASE AT BAR. — In the fifth clause of said document L. M. stipulated that inasmuch as the five parcels of land described in the fourth clause were not sufficient to cover all his obligations in favor of F. R., he also constituted a mortgage in favor of the latter and his assignees on any other property he then might have and on those he might acquire in the future. Such a stipulation did not constitute a valid mortgage on the five other parcels of land which L. M. subsequently acquired. In the first place, L. M. could not legally mortgage any property he did not yet own (see paragraph 2, article 1857, Civil Code). In the second place, in order that a mortgage may be validly constituted the instrument by which it is created must be recorded in the registry of deeds (article 1875, id.,); and so far as the additional five parcels of land are concerned, the registration of the mortgage did not affect and could not have affected them because they were not specifically described therein.
3. APPEAL; CONSIDERATION BY APPELLATE COURT OF PLAIN ERROR NOT ASSIGNED BY APPELLANT. — Under section 5 of Rule 53, the appellate court is authorized to consider a plain error, although it was not specifically assigned by the appellant.
2. MORTGAGE; FUTURE PROPERTY; CASE AT BAR. — In the fifth clause of said document L. M. stipulated that inasmuch as the five parcels of land described in the fourth clause were not sufficient to cover all his obligations in favor of F. R., he also constituted a mortgage in favor of the latter and his assignees on any other property he then might have and on those he might acquire in the future. Such a stipulation did not constitute a valid mortgage on the five other parcels of land which L. M. subsequently acquired. In the first place, L. M. could not legally mortgage any property he did not yet own (see paragraph 2, article 1857, Civil Code). In the second place, in order that a mortgage may be validly constituted the instrument by which it is created must be recorded in the registry of deeds (article 1875, id.,); and so far as the additional five parcels of land are concerned, the registration of the mortgage did not affect and could not have affected them because they were not specifically described therein.
3. APPEAL; CONSIDERATION BY APPELLATE COURT OF PLAIN ERROR NOT ASSIGNED BY APPELLANT. — Under section 5 of Rule 53, the appellate court is authorized to consider a plain error, although it was not specifically assigned by the appellant.
D E C I S I O N
OZAETA, J.:
This case is before us on certiorari to review a decision of the First Division of the Court of Appeals affirming, with modification, that of the Court of First Instance of Bulacan. The record as reconstituted by the parties consists only of the supplemental petition for certiorari; the brief for the petitioner, which contains as an appendix the decision of the Court of Appeals; the brief for the respondents; the memorandum for the petitioner in lieu of oral argument; and the reply memorandum for the respondents.
The facts found by the Court of Appeals may be restated as follows:chanrob1es virtual 1aw library
Before the year 1936 Laureano Marquez was indebted to Fortunato Resurreccion in the sum of P5,000 as the balance of the purchase price of a parcel of land which the former had bought and received from the latter. Fortunato Resurreccion in turn was indebted to the Luzon Surety Company in the same amount, which was secured by a mortgage on three parcels of land, one of which was that bought by Laureano Marquez from him. The formal deed of sale from Resurreccion to Marquez was to have been executed after Marquez shall have fully paid the purchase price and after Resurreccion shall have secured the cancellation of the mortgage by the Luzon Surety Company.
As early as 1933 Laureano Marquez had agreed to pay Fortunato Resurreccion’s indebtedness of P5,000 to the Luzon Surety Company by way of satisfaction of his own indebtedness to Fortunato Resurreccion in the same amount (Exhibits O and Q). In exhibit Q signed by Laureano Marquez on July 10, 1933, he bound himself as follows: "In the event an action is presented by the Luzon Surety Company against Fortunato Resurreccion for the recovery of the said indebtedness and the interests thereon, I, Laureano Marquez, obligate myself to indemnify Fortunato Ressurreccion for all the damages he may suffer in case the parcels of land mortgaged to the Luzon Surety Company are sold at public auction, including the fees of the attorneys of Fortunato Surety Company as well as in the action that Fortunato Resurreccion in the suit brought by the Luzon Surety Company as well as in the action that Fortunato Resurreccion may bring against me in relation to this agreement."cralaw virtua1aw library
Laureana Marquez failed to pay the indebteness of Fortunato Resurreccion to the Luzon Surety Company, and the latter foreclosed judicially the mortgaged executed in its favor by Fortunato Resurreccion.
On April 25, 1936, pending the foreclosure sale of the Company, Laureano Marquez executed and delivered to Fortunato Resurreccion another document in the following terms:jgc:chanrobles.com.ph
"Sepan todos los que la presente vieren:jgc:chanrobles.com.ph
"Que yo, Laureano Marquez, de 51 años de edad, filipino, viudo y vecino del barrio de Paco, municipio de Obando, Provincia de Bulacan, libre y voluntariamente hago constar y otorgo:jgc:chanrobles.com.ph
"Primero. — Que yo, Laureano Marquez, me comprometo y me obigo en pagar a la ’Luzon Surety Co., Inc.,’ una corporacion domiciliada en la Ciudad de Manila, toda la deuda del Sr. Fortunato Resurreccion, con todos sus interes vencidos y que en adelante venciren, los honorarios de abogados, y todos los gastos de ejecucion y costas judiciales, segun estan especifocados en la sentencia y orden de ejecucion de hipoteca en la causa civil No. 5037 del Juzgado de Primera Instancia de Bulacan, intitulado ’Luzon Surety Company Inc.,’ demandante, contra Fortunato Resurreccion, cuyo pago hare efectivo antes de hacerse la subasta o en el momento en que se haga la subasta de las tres (3) parcelas de terrenos convertidos en pesquerias constituidos en hipoteca por de terrenos convertidos en pesquerias constituidos en hipotea por dicho demandado Fortunato Resurreccion a favor de dicha ’Luzon Surety Co., Inc.,’ con el fin de que dichas tres (3) parcelas de terrenos y cualquiera de ellas no puedan vendese en subasta publica en el dia señalado en el aviso de Sheriff Provincial de Bulacan.
"Segundo — Que este compromiso y obligacion de pago arriba especificado se debe en consideracion al hecho de que el deudor y demandado Sr. Fortunato Resurreccion no ha podido pagar toda su deuda con sus intereses a la citada acreedora ’Luzon Surety Co., Inc.’ porque yo, Laureano Marquez, no he pagado a mi vez al Sr. Fortunato Resurreccion mi deuda como parte del precio de venta a mi favor de una de las tres pesquerias objeto de hipoteca, y por efecto de mi morosidad, el Sr. Fortunato Resurreccion incurrio a su vez en morosidad en el pago de su deuda con sus intereses a la ’Luzon Surety Co., Inc.’
"Tercero. — Que en el caso de que yo, Laureano Marquez, no pudiera pagar a la Luwn Surety Co., Inc., todas las obligaciones del demandado Fortunato Resurreccion especificadas en el parrafo Primero de esta escritura, y por dicha falta de pago de mi parte, se llevara a cabo y se efectuara la Subasta Publica de todas o cualquiera de las tres (3) parcelas de terrenos objeto de hipoteca a favor de la Luzon Surety Co., Inc., entonces y en tal caso, yo, Laureano Marquez, quedo obligado a pagar al Sr. Fortunato Resurreccion o a las personas que sean duehas de todas o cualquiera de dichas tres (3) parcelas de terrenos pesquerias, el valor real de todas o cualesquiera de dichas tres (3) pesquerias que se vendieran definitivamente en Subasta Publica, y pagare ademas la correspondiente indemnizacion a dicho Fortunato Resurreccion o a las personas que sean dueiias de dichas tres (3) pesquerias, con los correspondientes honorarios de sus abogados, y costas judiciales, en caso de pleito.
"Cuarto. — Que en y como garantia de mi obligacion de pagar y de indemnizar al Sr. Fortunato Resurreccion, en consideracion a la suma de un peso (P1) y en consideracion ademas, a todo lo expuesto en el parrafo tercero de este documento, por la presente constituyo en segunda hipoteca a favor de dicho Sr. Fortunato Resurreccion, y sus cesionarios, las siguientes cinco (5) parcelas de terrenos de mi propiedad que se describen como sigue:jgc:chanrobles.com.ph
"‘1. Una parcela de terreno (lote No. 2569 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon. Bounded on the north by lots Nos. 2567 and 2571, on the East by lot No. 2570, on the South by lots Nos. 2570 and 2568, and on the West by lot No. 2567, containing an area of thirty-two thousand eight hundred six (32,806) square meters, more or less. Transfer Certificate of Title No. 16561.
"‘2. A parcel of land (lot No. 2012 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lots Nos. 2827, 2826, 2825, 2824 and 2813, on the Southeast by lot No. 2811, and on the Southwest by lot No. 2811, and on the Northwest by lot No. 2828. Containing an area of thirty-one thousand one hundred twenty four (31,124) square meters, more or less. Transfer Certificate of Title No. 16563.
"‘3. A parcel of land (lot No. 2871 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lots Nos. 5090 and 2880 the Southeast by lot No. 2870, on the Southwest by Manatal creek, and on the Northwest by lot No. 2872. Containing an area of nineteen thousand four hundred and one (19,401) square meters, more or less. Transfer Certificate of Title No. 16564.
"‘4. A parcel of land (lot No. 2873 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lots Nos. 5089 and 2879, on the Southeast by lot No. 2872, on the Southwest by Manatal creek, and on the Northwest by lot No. 2874. Containing an area of nineteen thousand thirteen (19,013) square meters more or less. Transfer Certificate of Title No. 16565.
"‘5. A parcel of land (lot No. 2880 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lot No. 2883, on the Southeast y lot No. 2881, on the Southwest by lots Nos. 2870 and 2871, and on the Northwest by lots Nos. 5090 and 2879. Containing an area of twenty-two thousand one hundred fourteen (22,114) square meters, more or less. Transfer Certificate of Title No. 16566.’
"Quinto. — Que siendo el valor real de las cinco (5) parcelas de terreno’s arriba descritos en el parrafo cuarto de este documento insuficientes para cubrir todas mis obligaciones y responsabilidades objecto de este documento a favor del Sr. Fortunato Resurreccion, constituyo tambien en garantia a favor del Sr. Fortunato Resurreccion y sus cesionarios cualesquiera bienes que hoy y en adelante tunere, y cualesquiera derechos y acciones que hoy y en adelante tuviere.
"Sixto. — Que hoy he recibido del Sr. Fortunato Resurreccion el certificado de Transferencia de Titulo No. 16562 sobre el terreno lote No. 2811 de mi propriedad, en Bigaa, Bulacan, con el objeto de vender dicha parcela de terreno, y su precio de venta se pagara tambien a la ’Luzon Surety Co., Inc.,’ para completar el pago total de las obligaciones del Sr. Fortunato Resurreccion sobre mis obligacioners objeto de este documento.
"En testimonio de todo lo cual, firmo la presente en Malolos, Bulacan, hoy a 25 de abril de 1936.
(Fdo.) "LAUREANO MARQUEZ
"Firmado en presencia de:chanrob1es virtual 1aw library
(Fdo.) "JOSE R. PLATON
(Fdo.) "ILLEGIBLE" (Exhibit A.)
Since Laureano Marquez did not fulfill his promise contained in the first clause of the instrument above quoted, with the result that the mortgaged properties were sold at public auction and were totally lost by Fortunato Resurreccion, the latter commenced the present action against Laureano Marquez upon the instrument above quoted (1) to recover the value of the lost properties amounting to P16,500, with legal interest thereon from the date of the filing of the complaint, plus P2,000 as indemnity for the rents of the lands sold and P1,000 as attorney’s fees, and (2) to foreclose the mortgage embodied in said instrument.
As we do not have the record on appeal before us, we have to rely entirely upon the statements found in the decision of the Court of Appeals as to the issues raised by the parties in the lower courts. The issues raised in the Court of First Instance were stated by the Court of Appeals in its decision as follows:jgc:chanrobles.com.ph
"El demandado, ademas de una negacion general, alego como defenga especial, hechos que en sintesis significan que el firmo el Exhibit A por acomodacion, reclamando en contrademanda la suma de P5,000 por daños y perjuicios y honorarios de abogados, contestacion que fue enmendada para incluir como partes contrademandados a Honorio Resurreccion y Emilia Resurreccion, y alega que de la suma de P8,397 que el debia al demandante ya hab; pagado P8,103.29.
"El demandante tambien enmendo su demanda y su contestacion enmendada a la contrademanda enmendada, alegando entre otras cosas, que Honorio y Emilia Resurreccion no tomaron parte en la venta del terreno descrito en el certificado original de titulo No. 437 que el precio convenido era de P2,000 y no P1,500, y que el Exhibit A expresa la verdadera intencion de las partes, contestacion que volvio a enmendarse el 5 de agosto de 1940."cralaw virtua1aw library
The questions discussed and decided by the Court of Appeals were the following:chanrob1es virtual 1aw library
1. "La primera cuestion que suscita el demandado y apelante es la de que el demandante no tiene derecho de cobrar los daños y perjuicios, objetos de la demanda, porque las parcelas primera y tercera de las hipotecadas a la Luzon Surety Company, Inc., no le pertenecen, sino a Honorio Resurreccion y a los hijos del abogado Vicente Platon, segun la particion de los bienes del finado Arcadio Resurreccion. . . .
2. "La siguiente cuestion es la de si el demandado tiene derecho a rescindir el contrato, porque el demandante no ha querido otorgar la escritura de venta a su favor. . . .
3. "Dejaremos para mas tarde discutir los señalamientos de error 3.
The facts found by the Court of Appeals may be restated as follows:chanrob1es virtual 1aw library
Before the year 1936 Laureano Marquez was indebted to Fortunato Resurreccion in the sum of P5,000 as the balance of the purchase price of a parcel of land which the former had bought and received from the latter. Fortunato Resurreccion in turn was indebted to the Luzon Surety Company in the same amount, which was secured by a mortgage on three parcels of land, one of which was that bought by Laureano Marquez from him. The formal deed of sale from Resurreccion to Marquez was to have been executed after Marquez shall have fully paid the purchase price and after Resurreccion shall have secured the cancellation of the mortgage by the Luzon Surety Company.
As early as 1933 Laureano Marquez had agreed to pay Fortunato Resurreccion’s indebtedness of P5,000 to the Luzon Surety Company by way of satisfaction of his own indebtedness to Fortunato Resurreccion in the same amount (Exhibits O and Q). In exhibit Q signed by Laureano Marquez on July 10, 1933, he bound himself as follows: "In the event an action is presented by the Luzon Surety Company against Fortunato Resurreccion for the recovery of the said indebtedness and the interests thereon, I, Laureano Marquez, obligate myself to indemnify Fortunato Ressurreccion for all the damages he may suffer in case the parcels of land mortgaged to the Luzon Surety Company are sold at public auction, including the fees of the attorneys of Fortunato Surety Company as well as in the action that Fortunato Resurreccion in the suit brought by the Luzon Surety Company as well as in the action that Fortunato Resurreccion may bring against me in relation to this agreement."cralaw virtua1aw library
Laureana Marquez failed to pay the indebteness of Fortunato Resurreccion to the Luzon Surety Company, and the latter foreclosed judicially the mortgaged executed in its favor by Fortunato Resurreccion.
On April 25, 1936, pending the foreclosure sale of the Company, Laureano Marquez executed and delivered to Fortunato Resurreccion another document in the following terms:jgc:chanrobles.com.ph
"Sepan todos los que la presente vieren:jgc:chanrobles.com.ph
"Que yo, Laureano Marquez, de 51 años de edad, filipino, viudo y vecino del barrio de Paco, municipio de Obando, Provincia de Bulacan, libre y voluntariamente hago constar y otorgo:jgc:chanrobles.com.ph
"Primero. — Que yo, Laureano Marquez, me comprometo y me obigo en pagar a la ’Luzon Surety Co., Inc.,’ una corporacion domiciliada en la Ciudad de Manila, toda la deuda del Sr. Fortunato Resurreccion, con todos sus interes vencidos y que en adelante venciren, los honorarios de abogados, y todos los gastos de ejecucion y costas judiciales, segun estan especifocados en la sentencia y orden de ejecucion de hipoteca en la causa civil No. 5037 del Juzgado de Primera Instancia de Bulacan, intitulado ’Luzon Surety Company Inc.,’ demandante, contra Fortunato Resurreccion, cuyo pago hare efectivo antes de hacerse la subasta o en el momento en que se haga la subasta de las tres (3) parcelas de terrenos convertidos en pesquerias constituidos en hipoteca por de terrenos convertidos en pesquerias constituidos en hipotea por dicho demandado Fortunato Resurreccion a favor de dicha ’Luzon Surety Co., Inc.,’ con el fin de que dichas tres (3) parcelas de terrenos y cualquiera de ellas no puedan vendese en subasta publica en el dia señalado en el aviso de Sheriff Provincial de Bulacan.
"Segundo — Que este compromiso y obligacion de pago arriba especificado se debe en consideracion al hecho de que el deudor y demandado Sr. Fortunato Resurreccion no ha podido pagar toda su deuda con sus intereses a la citada acreedora ’Luzon Surety Co., Inc.’ porque yo, Laureano Marquez, no he pagado a mi vez al Sr. Fortunato Resurreccion mi deuda como parte del precio de venta a mi favor de una de las tres pesquerias objeto de hipoteca, y por efecto de mi morosidad, el Sr. Fortunato Resurreccion incurrio a su vez en morosidad en el pago de su deuda con sus intereses a la ’Luzon Surety Co., Inc.’
"Tercero. — Que en el caso de que yo, Laureano Marquez, no pudiera pagar a la Luwn Surety Co., Inc., todas las obligaciones del demandado Fortunato Resurreccion especificadas en el parrafo Primero de esta escritura, y por dicha falta de pago de mi parte, se llevara a cabo y se efectuara la Subasta Publica de todas o cualquiera de las tres (3) parcelas de terrenos objeto de hipoteca a favor de la Luzon Surety Co., Inc., entonces y en tal caso, yo, Laureano Marquez, quedo obligado a pagar al Sr. Fortunato Resurreccion o a las personas que sean duehas de todas o cualquiera de dichas tres (3) parcelas de terrenos pesquerias, el valor real de todas o cualesquiera de dichas tres (3) pesquerias que se vendieran definitivamente en Subasta Publica, y pagare ademas la correspondiente indemnizacion a dicho Fortunato Resurreccion o a las personas que sean dueiias de dichas tres (3) pesquerias, con los correspondientes honorarios de sus abogados, y costas judiciales, en caso de pleito.
"Cuarto. — Que en y como garantia de mi obligacion de pagar y de indemnizar al Sr. Fortunato Resurreccion, en consideracion a la suma de un peso (P1) y en consideracion ademas, a todo lo expuesto en el parrafo tercero de este documento, por la presente constituyo en segunda hipoteca a favor de dicho Sr. Fortunato Resurreccion, y sus cesionarios, las siguientes cinco (5) parcelas de terrenos de mi propiedad que se describen como sigue:jgc:chanrobles.com.ph
"‘1. Una parcela de terreno (lote No. 2569 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon. Bounded on the north by lots Nos. 2567 and 2571, on the East by lot No. 2570, on the South by lots Nos. 2570 and 2568, and on the West by lot No. 2567, containing an area of thirty-two thousand eight hundred six (32,806) square meters, more or less. Transfer Certificate of Title No. 16561.
"‘2. A parcel of land (lot No. 2012 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lots Nos. 2827, 2826, 2825, 2824 and 2813, on the Southeast by lot No. 2811, and on the Southwest by lot No. 2811, and on the Northwest by lot No. 2828. Containing an area of thirty-one thousand one hundred twenty four (31,124) square meters, more or less. Transfer Certificate of Title No. 16563.
"‘3. A parcel of land (lot No. 2871 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lots Nos. 5090 and 2880 the Southeast by lot No. 2870, on the Southwest by Manatal creek, and on the Northwest by lot No. 2872. Containing an area of nineteen thousand four hundred and one (19,401) square meters, more or less. Transfer Certificate of Title No. 16564.
"‘4. A parcel of land (lot No. 2873 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lots Nos. 5089 and 2879, on the Southeast by lot No. 2872, on the Southwest by Manatal creek, and on the Northwest by lot No. 2874. Containing an area of nineteen thousand thirteen (19,013) square meters more or less. Transfer Certificate of Title No. 16565.
"‘5. A parcel of land (lot No. 2880 of the S. M. de Pandi Estate, G. L. R. O. Record No. 8503), situated in the municipality of Bigaa, Province of Bulacan, Island of Luzon Bounded on the Northeast by lot No. 2883, on the Southeast y lot No. 2881, on the Southwest by lots Nos. 2870 and 2871, and on the Northwest by lots Nos. 5090 and 2879. Containing an area of twenty-two thousand one hundred fourteen (22,114) square meters, more or less. Transfer Certificate of Title No. 16566.’
"Quinto. — Que siendo el valor real de las cinco (5) parcelas de terreno’s arriba descritos en el parrafo cuarto de este documento insuficientes para cubrir todas mis obligaciones y responsabilidades objecto de este documento a favor del Sr. Fortunato Resurreccion, constituyo tambien en garantia a favor del Sr. Fortunato Resurreccion y sus cesionarios cualesquiera bienes que hoy y en adelante tunere, y cualesquiera derechos y acciones que hoy y en adelante tuviere.
"Sixto. — Que hoy he recibido del Sr. Fortunato Resurreccion el certificado de Transferencia de Titulo No. 16562 sobre el terreno lote No. 2811 de mi propriedad, en Bigaa, Bulacan, con el objeto de vender dicha parcela de terreno, y su precio de venta se pagara tambien a la ’Luzon Surety Co., Inc.,’ para completar el pago total de las obligaciones del Sr. Fortunato Resurreccion sobre mis obligacioners objeto de este documento.
"En testimonio de todo lo cual, firmo la presente en Malolos, Bulacan, hoy a 25 de abril de 1936.
(Fdo.) "LAUREANO MARQUEZ
"Firmado en presencia de:chanrob1es virtual 1aw library
(Fdo.) "JOSE R. PLATON
(Fdo.) "ILLEGIBLE" (Exhibit A.)
Since Laureano Marquez did not fulfill his promise contained in the first clause of the instrument above quoted, with the result that the mortgaged properties were sold at public auction and were totally lost by Fortunato Resurreccion, the latter commenced the present action against Laureano Marquez upon the instrument above quoted (1) to recover the value of the lost properties amounting to P16,500, with legal interest thereon from the date of the filing of the complaint, plus P2,000 as indemnity for the rents of the lands sold and P1,000 as attorney’s fees, and (2) to foreclose the mortgage embodied in said instrument.
As we do not have the record on appeal before us, we have to rely entirely upon the statements found in the decision of the Court of Appeals as to the issues raised by the parties in the lower courts. The issues raised in the Court of First Instance were stated by the Court of Appeals in its decision as follows:jgc:chanrobles.com.ph
"El demandado, ademas de una negacion general, alego como defenga especial, hechos que en sintesis significan que el firmo el Exhibit A por acomodacion, reclamando en contrademanda la suma de P5,000 por daños y perjuicios y honorarios de abogados, contestacion que fue enmendada para incluir como partes contrademandados a Honorio Resurreccion y Emilia Resurreccion, y alega que de la suma de P8,397 que el debia al demandante ya hab; pagado P8,103.29.
"El demandante tambien enmendo su demanda y su contestacion enmendada a la contrademanda enmendada, alegando entre otras cosas, que Honorio y Emilia Resurreccion no tomaron parte en la venta del terreno descrito en el certificado original de titulo No. 437 que el precio convenido era de P2,000 y no P1,500, y que el Exhibit A expresa la verdadera intencion de las partes, contestacion que volvio a enmendarse el 5 de agosto de 1940."cralaw virtua1aw library
The questions discussed and decided by the Court of Appeals were the following:chanrob1es virtual 1aw library
1. "La primera cuestion que suscita el demandado y apelante es la de que el demandante no tiene derecho de cobrar los daños y perjuicios, objetos de la demanda, porque las parcelas primera y tercera de las hipotecadas a la Luzon Surety Company, Inc., no le pertenecen, sino a Honorio Resurreccion y a los hijos del abogado Vicente Platon, segun la particion de los bienes del finado Arcadio Resurreccion. . . .
2. "La siguiente cuestion es la de si el demandado tiene derecho a rescindir el contrato, porque el demandante no ha querido otorgar la escritura de venta a su favor. . . .
3. "Dejaremos para mas tarde discutir los señalamientos de error 3.
