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Antonio Tambunting vs. Rehab. Finace Corp.

ANTONIO TAMBUNTING and AURORA TAMBUNTING, petitioners, vs. REHABILITATION FINANCE CORPORATION (now Development Bank of the Philippines), HEIRS OF JOSE ESCUETA AND ELEUTERIA ESCUETA, DEMETRIO HERNANDEZ CANDELARIA PAGUIO and THE COURT OF APPEALS, respondents.

G.R. No. 54224-25 | 1989-08-16

D E C I S I O N


NARVASA, J.:

A contract is the law between the parties and, absent any showing that its provisions are wholly or in part contrary to law, morals, good customs, public order, or public policy, will be enforced to the letter by the Courts. Application of this fundamental principle is all that is required to resolve the controversy at bar. 1

The root of the dispute is traceable to loans obtained by the Spouses Jose and Eleuteria Escueta from the Rehabilitation Finance Corporation (RFC) in the aggregate sum of P59,000.00. The loan were secured by a mortgage constituted by said spouses over land (and improvements thereon)...