General Milling Corporation v. Sps. Librado Ramos

Summary

This case involves the validity of an extrajudicial foreclosure proceeding initiated by General Milling Corporation against Spouses Ramos over a real estate mortgage securing a poultry growers contract. The Supreme Court affirmed lower court rulings that the foreclosure was premature and invalid because GMC failed to make proper demand for payment before initiating foreclosure proceedings. While the mortgage contract was valid despite having an indefinite term, the Court emphasized that foreclosure is only valid when the debtor is in default, which requires either express contractual provision waiving demand or actual demand by the creditor. The case establishes important precedent that mere requests to discuss account settlement do not constitute sufficient demand under Article 1169 of the Civil Code, and that appellate courts may consider unassigned errors necessary for complete case resolution.