Scribd Logo
Upload

Welcome to Scribd!

  • 174 views

    Cavite Development Bank

    Uploaded by

    Ihon Baldado
    1) Rodolfo Guansing obtained a loan from Cavite Development Bank (CDB) and mortgaged a property to secure the loan. When Guansing defaulted, CDB foreclosed on the property. 2) Lolita Chan Lim later offered to purchase the property from CDB. She paid a 10% down payment as earnest money. 3) However, it was discovered that the property originally belonged to Guansing's father Perfecto, not Rodolfo. A court had restored Perfecto's title.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cavite Development Bank

    Uploaded by

    Ihon Baldado
    174 views1 page
    1) Rodolfo Guansing obtained a loan from Cavite Development Bank (CDB) and mortgaged a property to secure the loan. When Guansing defaulted, CDB foreclosed on the property. 2) Lolita Chan Lim later offered to purchase the property from CDB. She paid a 10% down payment as earnest money. 3) However, it was discovered that the property originally belonged to Guansing's father Perfecto, not Rodolfo. A court had restored Perfecto's title.

    Original Description:

    Law Case Digest

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) Rodolfo Guansing obtained a loan from Cavite Development Bank (CDB) and mortgaged a property to secure the loan. When Guansing defaulted, CDB foreclosed on the property. 2) Lolita Chan Lim later offered to purchase the property from CDB. She paid a 10% down payment as earnest money. 3) However, it was discovered that the property originally belonged to Guansing's father Perfecto, not Rodolfo. A court had restored Perfecto's title.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    174 views1 page

    Cavite Development Bank

    Uploaded by

    Ihon Baldado
    1) Rodolfo Guansing obtained a loan from Cavite Development Bank (CDB) and mortgaged a property to secure the loan. When Guansing defaulted, CDB foreclosed on the property. 2) Lolita Chan Lim later offered to purchase the property from CDB. She paid a 10% down payment as earnest money. 3) However, it was discovered that the property originally belonged to Guansing's father Perfecto, not Rodolfo. A court had restored Perfecto's title.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 1

    Cavite Development Bank vs.

    Spouses Cyrus Lim


    G.R. No. 131679, February 1, 2000
    Facts:
    On or about June 15, 1983, a certain Rodolfo Guansing obtained a loan in the amount of P90,
    000.00 from CDB, to secure which, he mortgaged a parcel of land situated at No. 63 Calavite Street, La
    Loma, Quezon City registered in his name. As Guansing defaulted in the payment of his loan, CDB
    foreclosed the mortgaged. On March, 15, 1984, the mortgaged property was sold to CDB as the highest
    bidder. Guansing failed to redeem.
    On June 16, 1988, private respondent Lolita Chan Lim, offered to purchase the property from
    CDV. The written Offer to Purchase states in part:
    We hereby offer to purchase your property at 63 Calavite Street, La Loma, Quezon City for
    P300, 000.00 under the following terms and conditions:
    1. 10% option money
    2. Balance payable in cash
    3. Provided that the property shall be cleared of illegal occupants or tenants
    Lim paid CDB P30, 000.00 as option money, however, after some time following up the sale, she
    discovered that the subject property was originally registered in the name of Perfecto Guansing, father
    of mortgagor Rodolfo Guansing. Rodolfo succeeded in having the property registered in his name. It
    appears, however, that the father Perfecto, instituted a civil case in the RTC Branch 83, of QC, for the
    cancellation of his sons title. On March 23, 1984 the trial court rendered a decision restoring Perfectos
    previous title.
    Issues: a. Was the sale between CDB and Mrs. Lim perfected?
    b. Was the foreclosure sale valid?
    Held:
    Yes. Contracts are not define by the parties thereto but by principles of law. In determining the
    nature of a contract, the court are not bound by the name or title given to it by the contracting parties.
    In the case at bar, the sum of P30,000.00 although denominated in the offer to purchase as option
    money is actually in the nature of earnest money or down payment when considered with the other
    terms of the offer. It is because when Mrs. Lim offered to buy the property the 10% so called option
    money forms part of the purchase price as contemplated under Art. 1482 of the NCC.
    Given CDBs acceptance of Lims offer to purchase, it appears that a contract of sale was
    perfected and, indeed, partially executed because of the partial payment of the purchase price. There is
    however, a serious legal obstacle to such sale, rendering it impossible for CDB to perform its obligation
    as seller to deliver and transfer ownership of the property.
    Nemo dat quod non habet, one cannot give what on does not have. CDB never acquired a valid
    title to the property because the foreclosure sale, by virtue of which the property had been awarded to
    CDB as highest bidder, is likewise void since the mortgagor was not the owner of the property foreclose.
    A foreclosure sale, though essentially forced sale is still a sale in accordance with Art. 1458 of
    NCC. Being a sale, the rule that the seller must be the owner of the thing sold also applies in a
    foreclosure sale. This is the reason Art. 2085 of the NCC, in providing for essential requisites of the
    contract of mortgage and pledge, requires, among other things, that the mortgagor or pledgor be the
    absolute owner of the thing pledged or mortgaged, in anticipation of a possible foreclosure sale should
    the mortgagor default in the payment of loan.

    You might also like