Scribd
Upload
62 views1 page

Naguiat Vs CA and Queaño GR No. 118375, 03 October 2003 412 SCRA 591

Naguiat granted Queaño a loan of P200,000 and issued checks for P95,000 each to Queaño as the loan proceeds. Queaño executed a real estate mortgage to secure the loan but later claimed she did not receive the loan proceeds. Naguiat tried to foreclose on the mortgage but the court found the mortgage invalid because Naguiat did not prove the checks were actually cashed or deposited, so the loan was not perfected through mere issuance of the checks. The Civil Code states checks only have a payment effect after being cashed, and a loan contract requires delivery of the objects to be perfected, which did not occur here. The court affirmed the decision finding the

Uploaded by

Kaye
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
62 views1 page

Naguiat Vs CA and Queaño GR No. 118375, 03 October 2003 412 SCRA 591

Naguiat granted Queaño a loan of P200,000 and issued checks for P95,000 each to Queaño as the loan proceeds. Queaño executed a real estate mortgage to secure the loan but later claimed she did not receive the loan proceeds. Naguiat tried to foreclose on the mortgage but the court found the mortgage invalid because Naguiat did not prove the checks were actually cashed or deposited, so the loan was not perfected through mere issuance of the checks. The Civil Code states checks only have a payment effect after being cashed, and a loan contract requires delivery of the objects to be perfected, which did not occur here. The court affirmed the decision finding the

Uploaded by

Kaye
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Naguiat vs CA and Queao

GR No. 118375, 03 October 2003


412 SCRA 591
FACTS:
Queao applied with Naguiat a loan for P200,000, which the latter granted. Naguiat
indorsed to Queao Associated bank a Check for the amount of P95,000 and issued
also her own Filmanbank Check to the order of Queao for the amount of P95,000.
The proceeds of these checks were to constitute the loan granted by Naguiat to
Queao. To secure the loan, Queao executed a Deed of Real Estate Mortgage in
favor of Naguiat, and surrendered the owners duplicates of titles of the mortgaged
properties. The deed was notarized and Queao issued to Naguiat a promissory
note for the amount of P200,000. Queao also issued a post-dated check amounting
to P200,000 payable to the order of Naguait. The check was dishonoured for
insufficiency of funds. Demand was sent to Queao. Shortly, Queao, and one Ruby
Reubenfeldt met with Naguiat. Queao told Naguiat that she did not receive the
loan proceeds, adding that the checks were retained by Reubenfeldt, who
purportedly was Naguiats agent.
Naguiat applied for extrajudicial foreclosure of the mortgage. RTC declared the Deed
as null and void and ordered Naguiat to return to Queao the owners duplicates of
titles of the mortgaged lots hence, this Petition for Review on Certiorari under Rule
45, assailing the decision of CA, which affirmed in toto the decision by the RTC.
ISSUE: Whether or not the issuance of check resulted in the perfection of the loan
contract.
HELD:
NO, there was no evidence that was submitted by Naguiat that the checks she
issued or endorsed were actually encashed or deposited. The mere issuance of the
checks did not result in the perfection of the contract of loan. The Civil Code
provides that the delivery of bills of exchange and mercantile documents such as
checks shall produce the effect of payment only when they have been cashed. It is
only after the checks have been produced the effect of payment that the contract of
loan may have been perfected.
Article 1934 of the Civil Code provides: An accepted promise to deliver something
by way of commodatum or simple loan is binding upon the parties, but the
commodatum or simple loan itsel shall not be perfected until the delivery of the
object of the contract. A loan contract is a real contract, not consensual, and as
such, is perfected only upon the delivery of the objects of the contract.
WHEREFORE, the petition is denied and the assailed decision is affirmed; costs
against petitioner.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy