DBP validly exercised its right to rescind the deed
COMPROMISE of conditional sale upon the petitioners default.
WON the appeal should be closed and NEGLIGENCE/PROXIMATE CAUSE
terminated. WON Makati Shangri-La Hotel is liable to pay Under Article 2028 of the Civil Code, a damages for the death of its guest. compromise is a contract whereby the parties, by making reciprocal concessions, avoid a litigation In determining whether or not there is negligence or put an end to one already commenced. on the part of the parties in a given situation, jurisprudence has laid down the following test: Did Accordingly, a compromise is either judicial, if the defendant, in doing the alleged negligent act, use objective is to put an end to a pending litigation, or that reasonable care and caution which an ordinary extrajudicial, if the objective is to avoid a prudent person would have used in the same litigation. situation? If not, the person is guilty of negligence. The law in effect, adopts the standard supposed to As a contract, a compromise is perfected by mutual be supplied by the imaginary conduct of discreet consent. However, a judicial compromise, while pater families of the Roman Law. immediately binding between the parties upon its execution, is not executory until it is a approved by Liability on the part of the defendant is based upon the court and reduced to a judgment. The validity the fact that he was in a better situation than the of a compromise is dependent upon its compliance injured person to force and prevent the happening with the requisites and principles of contracts of the injurious occurrence. Moreover, in applying dictated by law. Also, terms and conditions of a the premises liability rule in the instant case as it is compromise must not be contrary to law, morals, applied in some jurisdiction in the United States, it good customs, public policy and public order. A is enough that guests are injured while inside the review of the Agreement, indicates that it is a hotel premises to make the hotelkeeper liable. judicial compromise because the parties intended it to terminate their pending litigation by fully Proximate cause is defined as that cause, which, in settling their dispute. natural and continuous sequence , unbroken by any efficient intervening cause, produces, the injury, CONSENT and without which the result would not have occurred. To reiterate, defendant-appellant is WON DBP could validly rescind and WON engaged in a business imbued with public interest, Article 1332 of the Civi Code applies. ergo, it is bound to provide adequate security to its guests. Article 1332 of the Civil Code provides that when one of the parties is unable to read, or if the contract Section P.D. No. 1529 is in a language not understood by him, and mistake or fraud is alleged, the person enforcing WON it applies in the instant case thereby the contract must show that the terms thereof have exempting the same from the requirements of been fully explained to the former. paying docket fees, of service of summons, and of the certification against forum shopping due It is quite notable that the petitioner did not specify to its not being an initiatory pleading. which of the stipulations of the deed of conditional sale she had difficulty or deficiency in Based on the provision, the proceeding for the understanding. Her generalized averment of amendment and alteration of a certificate of title having been misled should, therefore be brushed under Section 108 of P.D. No. 1529 is applicable aside as nothing but a last attempt to salvage a in seven instances or situations, namely: hopeless position. 1. When registered interests of any description, whether vested, contingent, expectant, or inchoate, have terminated and cease;
2. when new interest have arisen or been created
which do not appear upon the certificate;
3. when any error, omission or mistake was made
in entering a certificate or any memorandum thereon or on any duplicate certificate;
4. when the name of any person on the certificate
has been changed;
5. when the registered owner has been married,
or, registered as married, the marriage has been terminated and no right or interest of hers or creditors will thereby be affected;
6. when a corporation, which owned registered
land and has been dissolved, has not conveyed the same within three years after its dissolution; and
7. when there is reasonable ground for the
amendment or alteration of title.
Here, the petitioner was in reality seeking the
reconveyance of the property covered by OCT 684, not the cancellation of a certificate of title as contemplated by Section 108 of P.D. No. 159. Thus, his petition did not fall under any of the situations covered by Section 108 and was for that reason rightly dismissed by the lower courts.
G.R. No. 74886.december 8, 1992. Prudential Bank, Petitioner, vs. Intermediate Appellate Court, Philippine Rayon Mills Inc. and ANACLETO R. CHI, Respondents