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contracts classification
Law School Notes•Obligation and Contracts

Dizon vs. Gaborro

Law School Notes - Case Digest
May 16, 2021 by RedTint No Comments

No. L-36821. June 22, 1978

MAIN TOPIC – Contracts – Classification  

FACTS

Petitioner Jose P. Dizon was the owner of the three (3) parcels of land situated in Pampanga. He  constituted mortgage lien in favor of the Development Bank of the Philippines and Philippine  National Bank to secure his indebtedness. Petitioner Dizon having defaulted in the payment of  his debt, the Development Bank of the Philippines foreclosed the mortgage and executed  “Certificate of Sale,” in favor of the said bank. Alfredo G. Gaborro became interested in the  lands of Dizon. They entered into a contract of “Deed of sale with assumption of mortgage” and  “Option to Purchase Real Estate” After the execution of said contracts, Alfredo G. Gaborro took  possession of the three parcels of land. Gaborro made several payments to the DBP and PNB and introduced improvements, cultivated the lands, raised sugarcane and other crops and  appropriated the produce to himself. He also paid the land taxes thereon. 

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