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retention of what has been delivered or rendered by reason thereof. Some natural
obligations are set forth in the following articles.
In another way, it can also be argued that there was a contract between
the plaintiff and the defendant. Thus, the reciprocal obligation arose from
the bilateral contract between the parties.
In this case the contract was perfected by the meeting of the minds between
both parties, when the plaintiff agreed to let defendant live on the land provided
that the latter will plant Germilina Trees, and in return plaintiff will share to
defendants a portion of the proceeds for the sale of such trees. The first fraction of
the contract which is allowing the defendant to live if the latter plants trees had no
issue since it has fulfilled by both. Yet another consideration was imposed in the
planting and taking care of the Germilina Trees, which is the delivery of the share of
proceeds to if such are sold. The plaintiff has breached the contract by not
delivering the share of the proceeds to plaintiff, which they have both agreed.
ART. 1315. Contracts are perfected by mere consent, and from that moment the
parties are bound not only to the fulfillment of what has been expressly stipulated
but also to all the consequences which, according to their nature, may be in keeping
with good faith, usage and law. (Emphasis supplied)
ART. 1356. Contracts shall be obligatory in whatever form they may have been
entered into, provided all the essential requisites for their validity are present....
(Emphasis supplied)
2. That the defendant should not be ousted from the lot in question
until fulfillment of the plaintiffs obligation, which is to deliver the
agreed just share of the proceeds of the Germilina trees.
Concept of Mortgage by Legal Charge (American Jurisprudence)
A charge by deed expressed to be by way of legal mortgage", the debtor remains
the legal owner of the property, but the creditor gains sufficient rights over it to
enable them to enforce their security, such as a right to take possession of the
property or sell it.
Art. 1177, Civil Code of the Philippines: The creditors, after having pursued the
property in possession of the debtor to satisfy their claims, may exercise all the
rights and bring all the actions of the latter for the same purpose, save those which
are inherent in his person; they may also impugn the acts which the debtor may
have done to defraud them. (1111)
Other related legal basis:
Art. 1159. Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith. (1091a)
Art. 2142. Certain lawful, voluntary and unilateral acts give rise to the juridical
relation of quasi-contract to the end that no one shall be unjustly enriched or
benefited at the expense of another. (n)
Art. 19: Every person must, in the exercise of his rights and in the performance of
his duties, act with justice, give everyone his due and observe honesty and good
faith.