ART 1365
If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper
exists, or a writing exists, but the parties do not intend it to express their
final agreemeReformation is thus not available where no writing exists, or a writing exists, but the parties do not intend it to express their final agreement
Reformation is that remedy by means of which a written instrument is amended or rectified so as to express or conform to the real agreement or intention of the parties when by reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express such agreement or intention.
Reformation is that remedy by means of which a written
instrument is amended or rectified so as to express or conform to the
real agreement or intention of the parties when by reason of mistake,
fraud, inequitable conduct, or accident, the instrument fails to express
such agreement or intention.
FLORENCIA VELASQUES VS. JUSTO TEODORO (G.R. No. L-18666 February 17, 1923) Romualdez, J
In this case the heirs of Velasquez seek to recover title to, and possession of certain land.
There are 7 lands in total and the heirs of Velasquez said that they have in their possession 6 parcel of land owned by their parents as a conjugal property and 1 that is in possession of Justo Teodoro.
But Justo claimed that he bought the land from the heirs of a certain Leodegaria Valdes which also purched the land from Ramon Velasquez and by the terms of the document, the contract is one of sale
HOWEVER, in one of the clauses in the document, it appears that Velasquez did NOT reserve the right to repurchase the property, but bound himself to return the principal interest. Now, the contract is considered as a mortgage.
ISSUE: Whether the transfers of the subject lands are valid
HELD: the transfer of land is invalid. This aforementioned contract is a mortgage, thus upholding the judgment of the trial court that there was an assignment of error on the part of the respondents in considering the contract is one of sale. Ramon Velazquez did not acquire title to the property by virtue of the contract mentioned. He had no right to transfer it, as he did to Leodegaria Valdez.















