CELESTINA T. NAGUIAT, petitioner, vs. COURT OF APPEALS and AURORA QUEA?

O,
respondents. G.R. No. 118375 | 2003-10-03
Doctrine: A loan contract is a real contract, not consensual, and, as such, is perfected only upon
the delivery of the object of the contract.
Facts:
Queaño obtained a loan amounting to 200,000 due on 11 September 1980 evidenced by a
promissory note from Naguiat and issued for a loan secured by a real estate mortgage. in the
amount of P200,000.00, which is secured by a real estate mortgage. The loan proceeds was
endorsed by Nuguiat through two checks amounting 95,000. Aside from the PN, Nugiat issued a
Security Bank check amounting to 200,000 due on due date. On maturity date, the check was
dishonored for insufficiency of funds. Queaño received a letter from Naguiat’s lawyer,
demanding
settlement of the loan. Shortly thereafter, Queaño and Ruebenfeldt met with Naguiat. At the
meeting, Queaño told Naguiat that she did not receive the proceeds of the loan, adding that the
checks were retained by Ruebenfeldt, who purportedly was Naguiat’s agent. Naguiat applied for
the extrajudicial foreclosure of the mortgage. Queaño filed the case before the RTC, seeking the
annulment of the mortgage deed. RTC declared the Deed of Real Estate Mortgage null and void
which the CA affirmed.