Uy Tong vs. CA G.R. No. 77465 May 21, 1988
Two elements ele ments for pactum for pactum commissorium commissorium to to exist: 1! t"at t"ere s"o#l$ %e a &le$'e DOCTRINE: Two or mort'a'e w"erein a &ro&erty is &le$'e$ or mort'a'e$ %y way of se(#rity for t"e &ayment of t"e &rin(i&al o%li'ation) an$ 2! t"at t"ere s"o#l$ %e a sti&#lation for an a#tomati( a&&ro&riation %y t"e (re$itor of t"e t"in' &le$'e$ or mort'a'e$ in t"e e*ent of non+&ayment of t"e &rin(i&al &rin(i&al o%li'ation wit"in t"e sti&#late$ &erio$. FACTS: &o#ses -y Ton' an$ "o /o Gio0 #se$ to %e t"e owners of &artment No. 37 of t"e i'aya i'aya #il$in' #il$in',, to'et" to'et"er er wit" wit" t"e t"e lease" lease"ol$ ol$ ri'"t for 99 years years o*er o*er t"e lan$ lan$ on w"i(" w"i(" t"e %#il$in' stan$s. T"e lan$ is re'istere$ in t"e name of i'aya n*estments, n(. w"i(" owne$ t"e %#il$in' %#t sol$ &artment No. 37 an$ lease$ a &ortion of t"e lan$ in w"i(" t"e %#il$in' stan$s to t"e s&o#ses.
&o#ses &#r("ase$ from ayani"an #tomoti*e, n(. 7 #nits of motor *e"i(les &aya%le in installments, installments, e*i$en(e$ %y a written 'reement wit" terms of &ayment s&e(ie$: #&on si'nin' of 'reement, t"e s&o#ses s"all &ay to ayani"an /7,733.33, /5,333.33 on or %efore Mar(" 3,1969, an$ /25.333.33 on or %efore &ril 3, 1969 amo#nt to %e se(#re$ %y anot"er &ost$ate$ ("e(0 wit" mat#rity on &ril 3, 1969 $rawn %y t"e s&o#ses s"o#l$ t"e 2 aforementione$ ("e(0s %e not "onore$ on mat#rity, ayani"an will 'i*e t"e s&o#ses 63 $ays from mat#rity $ate to &ay or re$eem t"e *al#e of t"e sai$ ("e(0s. f t"e s&o#ses fail to &ay, ayani"an a#tomati(ally %e(omes t"e owner of t"e &artment No. 37, i'a*a #il$in', an$ o%li'ate$ only to &ay t"e s&o#ses /,56 an$ in s#(" e*ent t"e s&o#ses s"all exe(#te ee$ of %sol#te ale in fa*or of ayani"an an$or ssi'nment of ease"ol$ Ri'"ts. •
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fter fter ma0i ma0in' n' a $own $own&a &aym ymen entt of /7 /7,7 ,733 33.3 .33, 3, t"e t"e &o# &o#se ses s fail faile$ e$ to &ay &ay t"e t"e %ala %alan( n(e e of /43.333.33. ayani"an le$ an a(tion for s&e(i( &erforman(e a'ainst t"e s&o#ses wit" ;<, w"i(" ren$ere$ in fa*or of ayani"an. n or$er for exe(#tion &en$in' a&&eal was iss#e$ %y ;< an$ an$ a $ee$ $ee$ of assi' assi'nme nment nt was was exe(# exe(#te$ te$ %y t"e s&o#ses s&o#ses o*er &artm &artment ent No. 37 wit" t"e t"e lease"ol$ ri'"t o*er t"e lan$. T"e s&o#ses a(0nowle$'e$ re(ei&t of t"e s#m of /.333.33, &ai$ %y ayani"an. Notw Notwit it"s "sta tan$ n$in in' ' t"e t"e exe( exe(#t #tio ion n of t"e t"e $ee$ $ee$ of assi assi'n 'nme ment nt,, t"e t"e s&o# s&o#se ses s remai emaine ne$ $ in &ossessi &ossession on of t"e &remises. &remises. #%se=#e #%se=#ently, ntly, t"ey were were allowe$ allowe$ to remain remain in t"e &remise &remises s as lessees for a sti&#late$ mont"ly rental #ntil No*em%er 3, 1972. -&on ex&iration of &erio$, t"e s&o#ses faile$ to s#rren$er &ossession &ossession of t"e &remises. ayani"an le$ an e>e(tment (ase in t"e ;ity ;o#rt of Manila %#t was $ismisse$ on t"e 'ro#n$ t"at ayani"an was not t"e real &arty in interest, not %ein' t"e owner of t"e %#il$in'. ayani"an?s (o#nsel ma$e $eman$s to *a(ate t"e s#%>e(t a&artment %#t was i'nore$ %y t"e s&o#ses. ayani"an le$ an a(tion for re(o*ery of &ossession wit" $ama'es wit" ;< a'ainst t"e s&o#ses an$ im&lea$e$ i'aya n*estments, n(. as &arty $efen$ant. ;< ren$ere$ in fa*or of ayani"an, or$erin' or$erin' t"e s&o#ses to *a(ate t"e &remises an$ $eli*er t"e a&artment to ayani"an. t also or$ere$ i'aya n*estment, n(. to re(o'ni@e t"e ri'"t of owners"i& an$ &ossession of t"e ayani"an o*er &artment No. 37, an$ to a(0nowle$'e ayani"an as assi'nee+lessee in lie# of t"e s&o#ses. T"e s&o#ses a&&eale$ to ; w"i(" aArme$ in toto t"e ;< $e(ision. T"e motion for re(onsi$eration was li0ewise $enie$. Ben(e, /etition.
ISSUE: C"et"er or not t"e $ee$ of assi'nment is n#ll an$ *oi$ %e(a#se it is in t"e nat#re of a pactum commissorium an$or was %orne o#t of t"e same. No HELD: T"e &ro"i%ition on pactum commissorium sti&#lations is &ro*i$e$ for %y rti(le 2388 of t"e ;i*il ;o$e: rt. 2388. T"e (re$itor (annot a&&ro&riate t"e t"in's 'i*en %y way of &le$'e or mort'a'e, or $is&ose of t"e same. ny sti&#lation to t"e (ontrary is n#ll an$ *oi$.
T"e afore=#ote$ &ro*ision f#rnis"es t"e two elements for pactum commissorium to exist: 1! t"at t"ere s"o#l$ %e a &le$'e or mort'a'e w"erein a &ro&erty is &le$'e$ or mort'a'e$ %y way of se(#rity for t"e &ayment of t"e &rin(i&al o%li'ation) an$ 2! t"at t"ere s"o#l$ %e a sti&#lation for an a#tomati( a&&ro&riation %y t"e (re$itor of t"e t"in' &le$'e$ or mort'a'e$ in t"e e*ent of non+&ayment of t"e &rin(i&al o%li'ation wit"in t"e sti&#late$ &erio$. &er#sal of t"e terms of t"e =#estione$ a'reement e*in(es no %asis for t"e a&&li(ation of t"e pactum commissorium &ro*ision. #$'ment for ayani"an an$ or$ere$ t"e &o#ses to &ay t"e %alan(e of t"eir o%li'ation an$ in (ase of fail#re to $o so, to exe(#te a $ee$ of assi'nment o*er t"e &ro&erty in*ol*e$ in t"is (ase. T"e &o#ses ele(te$ to exe(#te t"e $ee$ of assi'nment &#rs#ant to sai$ >#$'ment. ;learly, t"ere was no a#tomati( *estin' of title on ayani"an %e(a#se it too0 t"e inter*ention of t"e trial (o#rt to exa(t f#lllment of t"e o%li'ation, w"i(", %y its *ery nat#re is ... anat"ema to t"e (on(e&t of pacto commissorio. n$ e*en 'rantin' t"at t"e ori'inal a'reement %etween t"e &arties "a$ t"e %a$'es of pactum commissorium, t"e $ee$ of assi'nment $oes not s#Der t"e same fate as t"is was exe(#te$ &#rs#ant to a *ali$ >#$'ment in ;i*il ;ase No. 83423 as (an %e 'leane$ from its *ery terms an$ (on$itions.
