the bachrach motor co v

7/25/2019 The Bachrach Motor Co V

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The Bachrach Motor Co v. Espiritu

G.R. No. L-28497 November ! "928

#acts$". This is a co%so&i'ate' case(Cases %o. 28497 a%' 28948) i%vo&vi%* t+o

separate sa&e tra%sactio%s. ,%e ma'e i% #eb. "8! "92 (case 28498)! +he%

the 'ee%'a%t ear&ier bou*ht a truc/ o% i%sta&me%t rom the petitio%er a%'

sai' truc/ +as mort*a*e' to*ether +ith the t+o others (%o. 77"97 0 92744

i% the the subse1ue%t sa&e tra%sactio% 'ate' u&3 28! "92. The sai' t+o o

the other truc/s +ere a&so purchase' (but a&rea'3 pai' previous&3) rom the

p&ai%ti. The 'ee%'a%t ai&e' to pa3 the ba&a%ce. 5% u&3 "92! 'ee%'a%t

a*ai% purchase' a%other truc/ rom Bachrach. The sai' truc/! to*ether +ith

the 6 other vehic&es +ere mort*a*e' to the p&ai%ti to secure the remai%i%*

ba&a%ce. The 'ee%'a%t ai&e' to pa3 the ba&a%ce or the &atest truc/obtai%e'.

2. 5t +as a*ree' i% both sa&es that "2 i%terest +i&& be pai' o% the u%pai'

price! a%' i% case o the %o%-pa3me%t o the tota& 'ebt at maturit3! 2 sha&&

be the pe%a&t3. The 'ee%'a%t a&so si*%e' a promissor3 %ote so&i'ari&3 +ith

his brother Rosario (acti%* as i%terve%or)! the sums secure' b3 the

mort*a*es. Rosario is a&&e*e' to be the o+%er o the t+o +hite truc/s %o.

77"97 0 92744 mort*a*e'.

6. hi&e these t+o cases +ere pe%'i%* i% the &o+er court the mort*a*e'

truc/s +ere so&' b3 virtue o the mort*a*e! a&& o them to*ether bri%*i%* i%!

ater 'e'ucti%* the sheris ees a%' tra%sportatio% char*es to Ma%i&a! the

%et sum o :6!29.8.

4. The &o+er court or'ere' the 'ee%'a%ts a%' the i%terve%or to pa3

p&ai%ti i% case 28497 the sum o :7!762.;9 +ith i%terest at the rate o "2

per ce%t per a%%um rom Ma3 "! "92 u%ti& u&&3 pai'! a%' 2 per ce%tthereo i% a''itio% as pe%a&t3. 5% case 28498! the tria& court or'ere' the

'ee%'a%t a%' the i%terve%or to pa3 p&ai%ti the sum o :4!2;8.28 +ith

i%terest at "2 per ce%t per a%%um rom


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. The appe&&a%ts co%te%' that truc/s 77"97 a%' 92744 +ere %ot

mort*a*e'! because! +he% the 'ee%'a%t si*%e' the mort*a*e 'ee's these

truc/s +ere %ot i%c&u'e' i% those 'ocume%ts! a%' +ere o%&3 put i% &ater!

+ithout 'ee%'a%ts /%o+&e'*e. =ppe&&a%ts a&so a&&e*e' that o% #ebruar3 4!

"92! the 'ee%'a%t so&' his ri*hts i% sai' truc/s Nos. 77"97 a%' 92744 to

the i%terve%or! a%' that as the &atter 'i' %ot si*% the mort*a*e 'ee's! suchtruc/s ca%%ot be co%si'ere' as mort*a*e'.

. But there is positive proo that the3 +ere i%c&u'e' at the time the

'ee%'a%t si*%e' these 'ocume%ts. Besi'es! there +ere prese%te' t+o o

'ee%'a%ts &etters to >i'a&*o! a% emp&o3ee o the p&ai%tis +ritte% a e+

'a3s beore the tra%sactio%! ac1uiesci%* i% the i%c&usio% o a&& his hite

truc/s a&rea'3 pai' or! i% the mort*a*e (E?hibit >-5).

5ssue$ @N the 2 pe%a&t3 upo% the 'ebt i% a''itio% to the 2 p.a. is

usurious

Ru&i%*$

No! =rtic&e ""2 o the Civi& Co'e permits the a*reeme%t upo% a pe%a&t3

apart rom the i%terest. Ahou&' there be such a% a*reeme%t! the pe%a&t3! as

+as he&' i% the case o Lope vs. >er%ae (62 :hi&.! 6")! 'oes %ot i%c&u'e

the i%terest! a%' +hich ma3 be 'ema%'e' separate&3. The pe%a&t3 is %ot to

be a''e' to the i%terest or the 'etermi%atio% o +hether the i%terest

e?cee's the rate ?e' b3 the &a+! si%ce sai' rate +as ?e' o%&3 or the

i%terest. But co%si'eri%* that the ob&i*atio% +as part&3 perorme'! a%'

ma/i%* use o the po+er *ive% to the court b3 artic&e ""4 o the Civi& Co'e!

this pe%a&t3 is re'uce' to "; per ce%t o the u%pai' 'ebt. The pe%a&t3 is

ho+ever re'uce' rom 2 upo% the sum o+e'! the 'ee%'a%ts %ee' pa3

o%&3 "; thereo% as pe%a&t3. (u'*me%t appea&e' rom is aDrme' i% a&&

other respects).

Robes-#ra%cisco Rea&t3 0


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Mi&&a% comp&ie' +ith her ob&i*atio% a%' pai' the i%sta&&me%ts. Ahe ma'e a

tota& pa3me%t! i%c&u'i%* i%terests a%' e?pe%ses or re*istratio% o tit&e.

=ter +hich! she ma'e repeate' 'ema%'s or the e?ecutio% o the %a&

'ee' o sa&e a%' the issua%ce o the TCT over the &ot.

The parties e?ecute' a 'ee' o abso&ute sa&e. The 'ee' ha' the provisio%$

o The se&&er +arra%ts that the TCT sha&& be tra%serre' i% the %ame o the

bu3er +ithi% mo%ths rom u&& pa3me%t.

o 5% case the se&&er ai&s to issue the TCT! the se&&er bears the ob&i*atio% to

reu%' the tota& amou%t a&rea'3 pai'! p&us 4 per a%%um i%terest.

=ter mo%ths! se&&er corporatio% ai&e' to cause the issua%ce o the TCT.

Ao! bu3er Mi&&a% &e' a comp&ai%t or specic perorma%ce a%' 'ama*es

a*ai%st the se&&er corporatio%. The comp&ai%t pra3s$

o u'*me%t or'eri%* the reormatio% o the 'ee' o abso&ute sa&eF

o u'*me%t or'eri%* the se&&er corporatio% to 'e&iver the TCTF or! i %ot

possib&e! pa3 bu3er Mi&&a% the va&ue o the &ot o u'*me%t or'eri%* the

se&&er corp to pa3 'ama*es! corrective a%' actua& (:"/)

Ae&&er corp a%s+ere'. The3$

a%t the comp&ai%t to be 'ismisse' because the 'ee' o abso&ute sa&e +as

vo&u%tari&3 e?ecute' bet+ee% them a%' the i%terest o the bu3er Mi&&a% +as

protecte' b3 the provisio% o i%terest at 4 per a%%um

TC a+ar'e' %omi%a& 'ama*es o :2;/.

5ssue$ as a+ar' o %omi%a& 'ama*es proper

>e&'$ Hes.

Ratio$

Ae&&er corporatio% +as i% 'e&a3! amou%ti%* to %o%-perorma%ce o

ob&i*atio% to bu3er Mi&&a% +ho ha' u&&3 pai' up her i%sta&me%ts.


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NCC"7; provi'es that those +ho i% the perorma%ce o their ob&i*atio%s

are *ui&t3 o rau'! %e*&i*e%ce! or 'e&a3! a%' those +ho i% a%3 ma%%er

co%trave%e the te%or thereo! are &iab&e or 'ama*es.

I%ortu%ate&3! the bu3er Mi&&a% submitte' her case +ithout prese%ti%*

evi'e%ce o% the actua& 'ama*es suere'.

AT5LL! the acts sho+ that the ri*ht o the bu3er M5i&&a% to ac1uire tit&e +as

vio&ate' b3 se&&er corp a%' this e%tit&es her at the ver3 &east to %omi%a&

'ama*es.

=rt. 222". Nomi%a& 'ama*es are a'Ju'icate' i% or'er that a ri*ht o the

p&ai%ti! +hich has bee% vio&ate' or i%va'e' b3 the 'ee%'a%t! ma3 be

vi%'icate' or reco*%ie'! a%' %ot or the purpose o i%'em%i3i%* the

p&ai%ti or a%3 &oss suere' b3 him.

=rt. 2222. The court ma3 a+ar' %omi%a& 'ama*es i% ever3 ob&i*atio%

arisi%* rom a%3 source e%umerate' i% artic&e ""7! or i% ever3 case +here

a%3 propert3 ri*ht has bee% i%va'e'.

:ami%tua% v. C= (G. R. No. L-2669)!


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sheeti%*s +ere 'e&ivere' o% the proper time a%' p&ace. The 1ua&it3 o

materia&s a%' overprici%* the same vio&ates their a*reeme%t.

5AAIE$

hether or %ot :ami%tua% is *ui&t3 o rau'

>EL

the bachrach motor co v

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