Josefa Laplana v. Mariano Garchitorena Chereau

Summary

This case involved enforcement of a contractual mortgage agreement and debt collection. Defendants acknowledged a debt of P24,902.86 and agreed to execute a second mortgage on Hacienda Salvacion upon obtaining title. When they breached this agreement by mortgaging the first titled lot to a third party, plaintiff sued for both debt recovery and mortgage enforcement. The trial court awarded the debt but refused to order mortgage execution, viewing the remedies as inconsistent. The Supreme Court affirmed the monetary award but modified the decision by declaring the debt constitutes a lien on the property, applying equity principles that contractual obligations should be enforced as agreed. The decision established that promises to constitute mortgages create enforceable personal obligations and that breach of security agreements allows creditors to accelerate debt maturity.