8/18/2019 Adrid v Morga Digest

http://slidepdf.com/reader/full/adrid-v-morga-digest 1/1

ADRID V. MORGA

FACTS:

Sps Adrid executed a sale with a right to repurchase in favor of Morga over their lot. Sps Adridnever repurchased the same. Later on they brought an action to recover the lot contending that

such agreement had been converted into one of antichresis considering that Morga tookpossession of the same and benefited himself of the yearly harvest of palay.

ISSUE:

W! the agreement had been converted into an antichresis.

HELD:

!o.

"here is nothing in the document nor in the acts of the parties subse#uent to its execution to

show that the parties had entered into a contract of antichresis. $n the case of Alo%ado vs. LimSiongco& '( )hil.& **+ this ,ourt said:

What characteri-es a contract of antichresis is that the creditor ac#uires the right to receive thefruits of the property of his debtor with the obligation to apply them to the payment of interest& if any is due& and then to the principal of his credit& and when such a covenant is not made in thecontract which speaks une#uivocally of a sale with right of repurchase& the contract is a salewith the right to repurchase and not an antichresis.

"he agreement was in fact an e#uitable mortgage. "he lot was given as security for Sps. Adrid/s

loan. Adrid also paid for the real estate tax.