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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
September-1950 Jurisprudence                 

  • G.R. No. L-2134 September 1, 1950 - JUAN C. GEQUILLANA v. FELIPE BUENAVENTURA

    087 Phil 300

  • G.R. No. L-2180 September 1, 1950 - IN RE: JUAN P. PELLICER & CO., INC. v. PHILIPPINE REALTY CORPORATION

    087 Phil 302

  • G.R. No. L-1415 September 13, 1950 - EL PUEBLO DE FILIPINAS v. MAMERTO CORTEZ, ET AL.

    087 Phil 309

  • G.R. No. L-2684 September 14, 1950 - GENERAL CORPORATION OF THE PHIL., ET AL. v. UNION INSURANCE SOCIETY OF CANTON, ET AL.

    087 Phil 313

  • G.R. No. L-2071 September 19, 1950 - TIRSO DACANAY v. PEDRO V. FLORENDO, ET AL.

    087 Phil 324

  • G.R. No. L-2412 September 19, 1950 - JOSE MARQUEZ LIM v. JOHN G. NELSON, ET AL.

    087 Phil 328

  • G.R. No. L-2870 September 19, 1950 - CHUA NGO v. UNIVERSAL TRADING CO.

    087 Phil 331

  • G.R. No. L-3450 September 19, 1950 - IN RE: PURIFICACION M. JOSON, ET AL. v. MARIANO NABLE, ET AL.

    087 Phil 337

  • G.R. No. L-1944 September 20, 1950 - PHILIPPINE NATIONAL BANK v. JOHN RANDRUP

    087 Phil 341

  • G.R. No. L-2127 September 20, 1950 - VICENTA FELIX VDA. DE SALGADO, ET AL. v. MANUEL DE LA FUENTE, ET AL.

    087 Phil 343

  • G.R. No. L-1977 September 21, 1950 - KOPPEL (PHILIPPINES) INC. v. COLLECTOR OF INTERNAL REVENUE

    087 Phil 348

  • G.R. No. L-2374 September 21, 1950 - APOLINAR ABEL v. PILAR DE LIMA, ET AL.

    087 Phil 352

  • G.R. No. L-2475 September 21, 1950 - FRANCISCO OSORIO v. ESTEBAN SALUTILLO, ET AL.

    087 Phil 356

  • G.R. No. L-2526 September 21, 1950 - TOMAS MAPUA, ET AL. v. SUBURBAN THEATRES, INC.

    087 Phil 358

  • G.R. No. L-3581 September 21, 1950 - JAMES MCGUIRE v. MANUFACTURERS LIFE INSURANCE CO.

    087 Phil 370

  • G.R. No. L-4033 September 21, 1950 - MARCELO STEEL CORPORATION, ET AL. v. IMPORT CONTROL BOARD, ET AL.

    087 Phil 374

  • G.R. No. L-2995 September 22, 1950 - CRISPULO F. ARNALDO, ET AL. v. JOSE BERNABE, ET AL.

    087 Phil 379

  • G.R. No. L-2516 September 25, 1950 - ANG TEK LIAN v. COURT OF APPEALS

    087 Phil 383

  • G.R. No. L-3743 September 25, 1950 - PHIL. ASSO. OF MECHANICAL AND ELECTRICAL ENGINEERS v. PROSPERO SANIDAD, ET AL.

    087 Phil 387

  • G.R. No. L-2362 September 29, 1950 - ANISIA AQUINO, ET AL. v. SOTERO ESGUERRA, ET AL.

    087 Phil 396

  • G.R. No. L-2467 September 29, 1950 - C. N. HODGES v. MARIA GAY, ET AL.

    087 Phil 401

  • G.R. No. L-2670 September 29, 1950 - JANE E. EDMANDS v. PHILIPPINE TRUST COMPANY

    087 Phil 405

  • G.R. No. L-2726 September 29, 1950 - GREGORIO ESTRADA v. PROCULO NOBLE

    087 Phil 408

  • G.R. No. L-2668 September 30, 1950 - NATIONAL LEATHER CO., INC. v. UNITED STATES LIFE INSURANCE CO.

    087 Phil 410

  •  





     
     

    G.R. No. L-2475   September 21, 1950 - FRANCISCO OSORIO v. ESTEBAN SALUTILLO, ET AL. <br /><br />087 Phil 356

     
    PHILIPPINE SUPREME COURT DECISIONS

    EN BANC

    [G.R. No. L-2475. September 21, 1950.]

    FRANCISCO OSORIO, Plaintiff-Appellee, v. ESTEBAN SALUTILLO and SANTAS DE SALUTILLO, Defendants-Appellants.

    Joaquin & Benedicto, for Appellants.

    Arsenio Suazo, for Appellee.

    SYLLABUS


    1. OBLIGATIONS AND CONTRACTS; ARTICLE 1127, CIVIL CODE; TERM FIXED IN OBLIGATIONS PRESUMED FOR BENEFIT OF DEBTOR AND CREDITOR, —Article 1127 of the Civil Code provides "Whenever a term is fixed in obligations it is presumed as established for the benefit of the creditor and debtor, unless from their tenor or some circumstances appear that it has been established for the benefit of one or the other." According to this provision, the term is presumed to be for the benefit of both debtor and creditor, and therefore, the debtor cannot make payment before the time stipulated the consent of the creditor. The presumption, of course, is rebuttable.

    2. bilateral contracts. — It is maintained that since the loan is payable without the interest, payment before the time stipulated would not harm the creditor. However, one of the conditions stipulated for the loan is, as above stated, that during the term of existence of the mortgage, the creditor shall have possession of the two parcels of land mortgaged, and will clean them, taking charge of the harvesting of the nuts from the coconut trees, and of the making of the copra, and that for hiss services, he will be given 70 per cent of the net proceeds of the sale of the copra. Plaintiff himself alleges, in paragraph 6 of his complaint, that the compensation thus stipulated in behalf of the creditor, takes place of the interest of the loan. And, according to the deed Exhibit A, this compensation is one of the conditions stipulated for the loan. The contract, therefore, is bilateral and, without the consent of the creditor, payment cannot be made before the date fixed by the parties.


    D E C I S I O N


    MORAN, C.J. :


    This is an appeal, upon a question of law, taken by the defendants from a judgment rendered by the Court of First Instance of Davao, in favor of the plaintiff.

    According to Exhibit A, plaintiff on May 27, 1947, took from the defendants a loan of P6,000 payable without interest, on May 27, 1952. Payment was guaranteed by a mortgage on real property. The contract contained the following stipulation:jgc:chanrobles.com.ph

    "The conditions of this mortgage are as follows; to wit:chanrob1es virtual 1aw library

    x       x       x


    "The other condition is such that due to the fact that I am so busy and preoccupied with the cultivation of another properties during the term or existence of this mortgage the mortgagee, Mr. Esteban Salutillo shall take possession of the two parcels herein mortgaged, and to take charge of the cleaning of the land, and the harvesting on the nuts from the coconut trees planted thereon and the making of coprax. And for his services in managing the land during the existence of the mortgage, we do hereby agree that after deducting all the expenses in the clearing, harvesting and making of coprax which will all be charged to my account (mortgagor) seventy per cent of the net proceeds from the sale of the coprax shall be the share of the mortgagee (Esteban Salutillo), while the remainder of thirty per cent shall be my share." (Emphasis ours.)

    On or before March 31, 1948, plaintiff offered to pay the loan, but upon defendants’ refusal to accept payment, a complaint was filed and the sum of P6,500 was consigned in court. The only question is whether or not, under the terms of the contract, the loan may be paid on or before March 31, 1948. The court rendered judgment holding the contract to be unilateral, and that the period therein fixed for payment of the loan is for the benefit of the debtor, who, for that reason, may make payment before May 27, 1952.

    This judgment is wrong. The contract of loan expressly stipulates that payment shall be made on May 27, 1952. Article 1127 of the Civil Code provides that — "Whenever a term is fixed in obligations it is presumed as established for the benefit of the creditor and the debtor, unless from their tenor or some other circumstances, it should appear that it has been established for the benefit of one or the other." According to this provision, the term is presumed to be for the benefit of both debtor and creditor, and, therefore, debtor cannot make payment before the time stipulated, without the consent of the creditor. The presumption, of course, is rebuttable.

    It is maintained that since the loan is payable without interest, payment before the time stipulated would not harm the creditor. However, one of the conditions stipulated for the loan is, as above stated, that during the term or existence of the mortgage, the creditor shall have possession of the two parcels of land mortgaged, and will clean them, taking charge of the harvesting of the nuts from the coconut trees, and of the making of the copra, and that for his services, he will be given 70 per cent of the net proceeds of the sale of the copra. Plaintiff himself alleges, in paragraph 6 of his complaint, that the compensation thus stipulated in behalf of the creditor, takes the place of the interest of the loan. And, according to the deed Exhibit A, this compensation is one of the conditions stipulated for the loan. The contract, therefore, is bilateral and, without the consent of the creditor, payment cannot be made before May 27, 1952.

    Judgment is reversed, and defendants-appellants are hereby absolved, with costs against appellee.

    Ozaeta, Paras, Pablo, Bengzon, Tuason, Montemayor and Reyes, JJ., concur.

    G.R. No. L-2475   September 21, 1950 - FRANCISCO OSORIO v. ESTEBAN SALUTILLO, ET AL. <br /><br />087 Phil 356


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