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SUPREME COURT REPORTS ANNOTATED VOLUME 284 23/09/2017, 12*24 AM
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* FIRST DIVISION.
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under Article 1255 of the Civil Code for the plain and simple reason
that there was only one creditor, the DBP. Article 1255
contemplates the existence of two or more creditors and involves the
assignment of all the debtors property.
Same; Same; Same; Same; Dation; An assignment which is
essentially a mortgage cannot constitute dation in payment under
Article 1245 of the Civil Code.Nor did the assignment constitute
dation in payment under Article 1245 of the Civil Code, which
reads: Dation in payment, whereby property is alienated to the
creditor in satisfaction of a debt in money, shall be governed by the
law on sales. It bears stressing that the assignment, being in its
essence a mortgage, was but a security and not a satisfaction of
indebtedness.
Same; Same; Same; Same; Pactum Commissorium; Elements.
The elements of pactum commissorium are as follows: (1) there
should be a property mortgaged by way of security for the payment
of the principal obligation, and (2) there should be a stipulation for
automatic appropriation by the creditor of the thing mortgaged in
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SUPREME COURT REPORTS ANNOTATED VOLUME 284 23/09/2017, 12*24 AM
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SUPREME COURT REPORTS ANNOTATED VOLUME 284 23/09/2017, 12*24 AM
this Court in some cases, estoppel cannot give validity to an act that
is prohibited by law or against public policy. Hence, the
appropriation of the leasehold rights, being contrary to Article 2088
of the Civil Code and to public policy, cannot be deemed validated
by estoppel.
Damages; A court cannot rely on speculations, conjectures, or
guesswork as to the fact and amount of damages, but must depend
upon competent proof that they have been suffered by the injured
party and on the best obtainable evidence of the actual amount
thereof.Actual or compensatory damages cannot be presumed, but
must be proved with reasonable degree of certainty. A court cannot
rely on speculations, conjectures, or guesswork as to the fact and
amount of damages, but must depend upon competent proof that
they have been suffered by the injured party and on the best
obtainable evidence of the actual amount thereof. It must point out
specific facts which could afford a basis for measuring whatever
compensatory or actual damages are borne.
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SUPREME COURT REPORTS ANNOTATED VOLUME 284 23/09/2017, 12*24 AM
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SUPREME COURT REPORTS ANNOTATED VOLUME 284 23/09/2017, 12*24 AM
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ART. 2088. The creditor cannot appropriate the things given by way
of pledge or mortgage, or dispose of them. Any stipulation to the
contrary is null and void.
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SUPREME COURT REPORTS ANNOTATED VOLUME 284 23/09/2017, 12*24 AM
law.
The trial court also declared invalid condition No. 12 of
the Assignment of Leasehold Rights for being a clear case
of pactum commissorium expressly prohibited and declared
null and void by Article 2088 of the Civil Code. It then
concluded that since DBP never acquired lawful ownership
of CUBAs
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1. DECLARING null and void and without any legal effect the
act of defendant Development Bank of the Philippines in
appropriating for its own interest, without any judicial or
extra-judicial foreclosure, plaintiff s leasehold rights and
interest over the fishpond land in question under her
Fishpond Lease Agreement No. 2083 (new);
2. DECLARING the Deed of Conditional Sale dated February
21, 1980 by and between the defendant Development Bank
of the Philippines and plaintiff (Exh. E and Exh. 1) and the
acts of notarial rescission of the Development Bank of the
Philippines relative to said sale (Exhs. 16 and 26) as void
and ineffective;
3. DECLARING the Deed of Conditional Sale dated August 16,
1984 by and between the Development Bank of the
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6 Rollo, G.R. No. 118342, 43; Rollo, G.R. No. 118367f, 55.
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with authority,
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she declared:
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