02 Serg's Products Inc v PCI leasing.pdf - SUPREME COURT REPORTS ANNOTATED VOLUME 338 VOL 338 499 Sergs Products Inc vs PCI Leasing and Finance Inc G.R

02 Serg's Products Inc v PCI leasing.pdf - SUPREME COURT...

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8/5/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 338 central.com.ph/sfsreader/session/0000016c624f554d2a15023f003600fb002c009e/t/?o=False 1/13 VOL. 338, AUGUST 22, 2000 499 Serg’s Products, Inc. vs. PCI Leasing and Finance, Inc. G.R. No. 137705. August 22, 2000. * SERG’S PRODUCTS, INC., and SERGIO T. GOQUIOLAY, petitioners, vs. PCI LEASING AND FINANCE, INC., respondent. Civil Law; Property; The machines although each of them was movable or personal property on its own, all of them have become immobilized by destination because they are essential and principal elements of petitioners chocolate-making industry .—In the present case, the machines that were the subjects of the Writ of Seizure were placed by petitioners in the factory built on their own land. Indisputably, they were essential and principal elements of their chocolate-making industry. Hence, although each of them was movable or personal property on its own, all of them have become immobilized by destination because they are essential and principal elements in the industry. In that sense, petitioners are correct in arguing that the said machines are real, not personal, property pursuant to Article 415 (5) of the Civil Code. Same; Same; Contracting parties may validly stipulate that a real property be considered as personal. —The Court has held that contracting parties may validly stipulate that a real property be considered as personal. After agreeing to such stipulation, they are consequently estopped from claiming otherwise. Under the principle of estoppel, a party to a contract is ordinarily precluded from denying the truth of any material fact found therein. _______________ * THIRD DIVISION. 500 500 SUPREME COURT REPORTS ANNOTATED
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8/5/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 338 central.com.ph/sfsreader/session/0000016c624f554d2a15023f003600fb002c009e/t/?o=False 2/13 Serg’s Products, Inc. vs. PCI Leasing and Finance, Inc. Same; Same; The Lease Agreement clearly provides that the machinesin question are to be considered as personal property; Under the circumstances they are proper subjects of the writ of seizure .—In the present case, the Lease Agreement clearly provides that the machines in question are to be considered as personal property. x x x Clearly then, petitioners are estopped from denying the characterization of the subject machines as personal property. Under the circumstances, they are proper subjects of the Writ of Seizure. Same; Same; That the machines should be deemed personal property pursuant to the Lease Agreement is good only insofar as the contracting parties are concerned .—It should be stressed, however, that our holding—that the machines should be deemed personal property pursuant to the Lease Agreement—is good only insofar as the contracting parties are concerned. Hence, while the parties are bound by the Agreement, third persons acting in good faith are not affected by its stipulation characterizing the subject machinery as personal. In any event, there is no showing that any specific third party would be adversely affected.
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