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ALFREDO N. AGUILA v. CA

This case has been cited 1 times or more.

2004-05-28
YNARES-SATIAGO, J.
It is well-settled that the presence of even one of the foregoing circumstances is sufficient to declare a contract as an equitable mortgage,[65] in consonance with the rule that the law favors the least transmission of property rights.[66] For the presumption of an equitable mortgage to arise under Article 1602, two requisites must concur: (1) that the parties entered into a contract denominated as a sale; and (2) that their intention was to secure an existing debt by way of a mortgage.[67]