It is not without reason to state that the ambience of a particular

case has much to contribute to the resolution thereof. So it is with

the instant case. And for a better appreciation of the antecedents
which led to the decision of the Court of First Instance of Pampanga
and subsequently the questioned decision of the respondent Court
of Appeals, the environmental facts which spawned them should
thus be laid bare before this Honorable Court, the better to
appreciate their factual significance and legal consequences.   chanroblesvirtualawlibrary chanrobles virtual law library

1. Sometime on November 10, 1965, Alta Farms secured from the

GSIS a Three Million Two Hundred Fifty Five Thousand Pesos
(P3,255,000.00) loan and an additional loan of Five Million Sixty-
Two Thousand Pesos (P5,062,000.00) on October 5, 1967, to
finance a piggery project. These loans were secured by two
mortgage (Exh. "B").  
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2. Alta Farms defaulted in the payment of its amortizations. it is

presumably because of this that Alta Farms executed a Deed of Sale
With Assumption of Mortgage with Asian Engineering Corporation on
July 10, 1969 (Exh. "C"), but without the previous consent or
approval of the GSIS and in direct violation of the provisions of the
mortgage contracts

3. Even without the approval of the Deed of Sale With Assumption

of Mortgage by the GSIS, Asian Engineering Corporation executed
an Exclusive Sales Agency, Management and Administration
Contract in favor of Laigo Realty Corporation, with the intention of
converting the piggery farm into a subdivision (Exh. "D"). And on
October 20, 1969, Asian Engineering executed another contract with
Laigo, whereby Laigo was to undertake the development of the
property into a subdivision (Exh. "E"). Conformably with the two
contracts (Exh "D" and "E"), Laigo started the development of the
lot into a subdivision.

Contract of Petitioner library

Lumanlan and his admission

4. After developing the area, on December 4, 1969, Laigo entered

into a contract (Exh. "GG") with Amable Lumanlan, one of the
petitioners, to construct for the home buyers, 20 houses on the
subdivision. The contract provided that Laigo shall secure the
agreement and signature of the home buyers (Paragraph 6 of
Agreement, Exh. "GG") and that Laigo "shall pay for the houses on
a "turn-key" bases" (Paragraph 5 of Agreement, Exh. "GG"). The
parties to the agreement are, stated by the agreement itself, as
follows:

This Agreement, executed this 29th day of November, 1969, in the

City of Manila, by and between  chanrobles virtual law library

LAIGO REALTY CORPORATION, ...   chanroblesvirtualawlibrary chanrobles virtual law library

represented by its President,  chanrobles virtual law library

RHODY E. LAIGO, ... hereinafter referred to as the FIRST PARTY chanrobles virtual law library

- and -  chanrobles virtual law library

... AMABLE G. LUMANLAN ... hereinafter referred to as the SECOND

PARTY.  
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And the signatories are -  chanrobles virtual law library

IN WITNESS WHEREOF, the parties hereunto affixed their

signatures this 4th day of Dec. 1969 at Manila, Philippines.

  (Sgd) Illegible
LAIGO REALTY ALEJANDRO Y. DE
CORPORATION JESUS
BY: By:
(Sgd) RHODY E. LAIGO (Sgd) Illegible
(t) RHODY E. LAIGO AMABLE G.
LUMANLAN
- President -  

  (Sgd) Illegible
  ANASTACIO F.
DANAN

(See Exh. "GG")  chanrobles virtual law library