Leung Yee v Strong Machinery Co., 37 Phil 644 Summary

LEUNG YEE, plaintiff-appellant, vs. FRANK L. STRONG MACHINERY COMPANY and J. G. WILLIAMSON, defendants-appellees.

G.R. No. L-11658 | 1918-02-15

Chattel mortgage over a building is invalid and produces no effect
Registration of a sale of real property in a chattel mortgage registry cannot be given legal effect of registration in the registry of real property
One who purchases real estate with knowledge of a defect or lack of title in his vendor cannot claim that he has acquired title to it in good faith
Article 1473 of the Civil Code paragraph 3 sample application

D E C I S I O N

CARSON, J .:

The "Compañia Agricola Filipina" bought a considerable quantity of rice-cleaning machinery from the defendant machinery company, and executed a chattel mortgage thereon to secure payment of the purchase price. It included in the mortgage deed the building of strong materials in which the machinery was installed, without any reference to the land on which it stood. The indebtedness secured by this instrument not having been paid when it fell due, the mortgaged property was sold by the sheriff, in pursuance of the terms of the mortgage instrument, and was bought in by the machinery...