new debtor takes his place in the relation . Without such release, there is no novation. Court of Appeals correctly found that the respondent’s obligation to pay the balance of their account with petitioner was extinguished pro tanto by the deeds of credit. CA decision is affirmed with the modification that the principal amount of the respondents is P33,841. MAMENTA Vda. De JAYME v. COURT OF APPEALS G.R.N o. 128669,October 4, 002 FACTS: Page 256 of 747
On January 8, 1973, spouses Jayme entered into a contract of lease with George Neri, President of Asian Cars covering one-half of Lot 2700 for 20 years. Under the contract, Asian Cars used the leased premises as a collateral to secure payment of loan which Asian Cars may obtain from any bank, provided, the proceeds of the loans shall be used solely for the construction of the building which upon the termination of lease shall automatically become the property of the Jayme spouses. In October1977, Asian Cars obtained a loan of six million from Metrobank. The entire lot 2700 was offered as one of the several properties given as collateral for the loan. Due to financial difficulties, Asian Cars conveyed ownership of the building on the leased premises to MBTC by way of dacion en pago. Eventually, MBTC extrajudicially foreclosed the mortgage and MBTC was the highest bidder in a public auction. Heirs of Graciano Jayme filed an action for annulment of contract with damages and issuance of preliminary injunction against Asian Cars. RTC declared that the REM executed by Jayme in favor of Metrobank as valid and binding. XXX CA affirmed the decision declaring valid also the foreclosure of the mortgage and the foreclosure sale. ISSUE: Whether or not the dacion en pago by Asian Cars in favor of MBTC is valid and binding despite the stipulation in the lease contract RULING: Court of Appeal did not err in considering MBTC as a purchase in good faith, MBTC had no knowledge of the stipulation in the lease contract. There was no annotation on the title of any encumbrance. Thus, the transfer of the building in favor of MBTC was properly held valid and binding by respondent CA. CA decision is affirmed with modification ordering that private respondent MBTC pay petitioner’s rentals amounting to P602,083.33. with 6 % interest per annum until fully paid. CALTEX V. INTEREDIATE APPELLATE COURT and ASIA PACIFC G.R. No. 72703, November 13, 1992 FACTS: Page 257 of 747
On January 12, 1975, Asia Pacific entered into an agreement with Caltex whereby petitioner agreed to supply private respondent’s aviation fuel for 2 years. As of June 30, 1980, asia Pacific had an outstanding obligation n the total amount of P 4,072,682.13. Caltex executed a Ded of Assignment wherein it assigned to petitioner its receivables from the National treasury of the Philippines. Pursuant to the Deed of assignment, National Treasury warrant the amount of P5,475,294 representing the refund. Caltex refused to return the excess amount of P510,550.63 because it represented the interest and service charges and the rate of 18% per annum on the unpaid and overdue account of respondent. RTC dismissed the case. IAC reversed the decision and ordered petitioner to return the amount of P510,550.63 to private respondent.
- Fall '16