4 Chua was declared insolvent and Seco was appointed assignee of the insolvency

4 chua was declared insolvent and seco was appointed

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4. Chua was declared insolvent and Seco was appointed assignee of the insolvency. 5. Ocejo filed a case against PNB for unlawfully holding smome 4,722 pilones of sugar. So, Ocejo prayed for the sugar back. 6. By agreement of the parites, the sugar was sold and the proceeds was deposited in the bank, subject to the order of the court upon final judgment of the case. 7. Points of contention: a. Bank: sugar belongs to them because it had been pledged to them. They are in good faith b. Ocejo: they are entitled to demand the payment since Chua didn’t pay the sugar, so no title passed to Chua. The title of the sugar is still with them. c. Seco: delivery of the sugar to Chua transmitted the title of the sugar, thus the pledge was null and void. Sugar ISSUE: 1. WON title to the sugar passed to Chua upon delivery to him. YES 2. WON the pledge is valid. NO Contract of sale was perfected 1. There was a perfected contract of sale when the parties (Ocjeo and Chua) agreed upon the quantity and quality of sugar, and the delivery. 2. Since there was no term of payment, the seller is the one who can ask for payment, so he can ask for it subsequent or simultaneous with delivery. 3. But when delivery is made, without requiring payment in advance or simultaneously, the seller waives his right to insist upon the payment in advance or simultaneously 4. But seller has the right to payment upon demand made to the buyer. Pledge is invalid 1. Bank is wrong in claiming that the sugar that was pledged to them included the sugar involved in the sale between Chua and Ocejo 2. Chua couldn’t have pledged the sugar that was in the warehouse in Muelle de la Industria since at the time of the private document that was written to pledge the sugar to the Bank, Chua didn’t have ownership over that sugar since it hasn’t been delivered to him yet. 3. Bank took possession of the sugar in the Muelle de la Industria warehouse because of the mistaken belief that it was part of the sugar in the Binondo warehouse. But even though, the pledge of the sugar is still void as against third persons since the certainty of date doesn’t appear in the public document. Cruz v Lee 1. Cruz pledged jewelry (diamond earrings and other jewelry) to 2 pawnshops: a. Monte de Piedad – diamond earring – 7k b. Ildenfonso Tambunting – other jewelry – 2k 2. These tickets can be renewed upon paying from time to time of the sum representing the interest accruing upon the debt for which the jewelry was pawned 3. Cruz pledged to Lee 6 pawn tickets (Monte) + a bracelet for P3,020. The receipt included a stipulation that Lee will become the absolute owner of things pledged if Cruz didn’t return the money within 60 days. 4. Cruz pledged to Lee again 2 pawn tickets of Tambunting + 4 pawn tickets of Monte for P 3,500 with the same stipulation in the receipt.
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