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BPI Investment Corp vs CA and ALS Management & Development Corp

BPI INVESTMENT CORPORATION, petitioner, vs. HON. COURT OF APPEALS and ALS MANAGEMENT & DEVELOPMENT CORPORATION, respondents.

G.R. No. 133632 | 2002-02-15

CONTRACTS

- Reciprocal contracts

- Damages

Facts:

A certain Frank Roa obtained a loan from AIDC, the predecessor of BPIIC. He mortgaged his house and lot as security for the loan.

Eventually, Roa sold the said property to ALS Management and Development Corp. with the understanding that the latter would assume Roa's balance of indebtedness with AIDC.

March 1981, AIDC issued a new loan to ALS to be applied to Roa's debt. The loan was released in August and September 1982. The amortization commenced on May 1, 1981.

August 31, 1982, ALS updated Roa's arrearages. The principal balance was liquidated when AIDC applied the proceeds of...