Eutiquiano Buiser v. Basilia Cabrera

Summary

This case involved interpretation of a mortgage contract's property description. Nemesio Cabrera mortgaged four parcels including one described as 500 square meters residential land, but owned a 4,008 square meter inherited lot. After foreclosure and subsequent sale to Eutiquiano Buiser, Cabrera's estate sought to recover 3,518 square meters claiming it wasn't included in the original mortgage. The Supreme Court applied Civil Code provisions on contract interpretation, finding that despite general boundary descriptions, the parties intended to mortgage only the 500 square meter residential portion with the house, not the entire inherited lot. The Court emphasized that gratuitous contracts should be interpreted to effect the least transmission of rights, and that the mortgage description's area and assessed value indicated the parties' true intention. The decision established important precedent on property boundary interpretation and contract construction in mortgage agreements.