Herein defendants are brothers Arturo and Aurelio Reyes, who along with Hermogenes Mendoza are

optometrists and were partners in the business connected with optometry.

On December 24,1928, Mendoza applied for and obtained from Bureau of Lands a loan amounting to
300 pesos with interest of 9% per annum. Mendoza constituted a mortgage on a residential lot with
improvements which he bought by installment in 1922 for more than 1,000 pesos and had completed
payment thereof in 1927. Mendoza had been paying the interest on the loan together with the land tax
until November 4, 1931. The mortgage matured on April 23, 1931 but Mendoza succeeded in having
the period for payment extended to December 5, 1931. Threatened by the Bureau of Lands with
foreclosure of the mortgage, Mendoza approached defendant Arturo Reyes who had 280 pesos realized
from his business and requested help so he (Mendoza) could avoid foreclosure of the mortgage.

On April 31, 1931, Mendoza executed a notarial instrument in favor of defendants wherein it was made
to appear that he sold and transferred the parcel of land that was subject of the mortgage for the sum of
1,745 pesos. It was likewise made to appear in the said document that the land was subject to a
mortgage lien in favor of the Bureau of Lands to secure the payment of a debt in the sum of 300 pesos..
m which obligation was assumed by the purchasers as a part of the purchase price. Said deed of sale
was not presented to Bureau of Lands or to the registry of deeds for registration.

Arturo Reyes also on said date, issued a promissory note in favor of Mendoza, wherebym for vakue
received, he promised to pay Mendoza the sum of 300 pesos on or before April 24 1931. Defendants
also executed another promissory note in favor of Mendoza, acknowledging that they were indebted to
the latter and promising to pay jointly and severally the sum of 1,145 on or before October 23, 1932.

It was adduced that the purpose of Mendoza in having the defendants sign the promissory notes was to
present such to one Vicente Syquia and to convince him to buy the lands at a high price, and the profits
be divided among themselves. Pursuant thereof, defendant Arturo Mendoza 160 pesos and 9.83 pesos
to the Bureau of Lands so as to avoid the sale at public auction of the mortgaged land.

Inasmuch as the period for the payment of the mortgage debt had expired without having been paid, the
mortgagee instituted a case for the foreclosure of mortgage against Mendoza alone since the mortgaged
property remains to be under his name. Judgment was rendered against Mendoza on June 13, 1933.

On September 4,1933, Mendoza who was in dire need of money, executed a document whereby in
consideration of the sum of 1,000 pesos transferred to herein plaintiff Isidro Santos all his rights,
interest and participation in said promissory note.

Now comes plaintiff Isidro Santos who after