Article 1374. The various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly.
By: Kristia Capio
Artikulo 1374. Ang iba’t ibang kasunduan ng isang kontrata ay dapat bigyang-kahulugan ng magkasama, dahil sa mga hindi tiyak sa diwa na maaaring magresulta mula sa lahat ng mga ito na kinuha magkasama.
INTERPRETATIONS OF VARIOUS STIPULATIONS OF A CONTRACT
A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instrument and not from particular words, phrases, or clauses. All provisions should, if possible, be so interpreted as to harmonize with each other.
CASE
THE BANK OF THE PHILIPPINE ISLANDS vs TY CAMCO SOBRINO, ET AL.
G.R. No. L-36524. February 6, 1933.
HULL, J.
Facts
Ty Camco Sobrino is the registered owner of two parcels of land situated in the municipality of Rosario, Province of Pangasinan, described in Transfer Certificates of Title Nos. 1803 and 1804.
On April 12, 1924 Ty Camco Sobrino executed a deed of first mortgage on these parcels of land in favor of the Philippine National Bank, and the mortgage was noted on the back of the transfer certificates of title.
On February 21, 1930, Ty Camco Sobrino executed a deed of second mortgage on the same properties in favor of Cu Yeg Keng and Simon A. Chan Bona, without having secured the written consent of the Philippine National Bank. The mortgagor obtained the certificates of title from this bank. The register of deeds for Pangasinan registered and noted on the Transfer Certificate of Title Nos. 1803 ad 1804 the second mortgage.
On April 14, 1931, the Philippine National Bank filed in the Court of First Instance of Pangasinan, a petition praying that the annotation or inscription of the second mortgage be declared null and void, and ordered cancelled.
Issue
Whether or not that the 2nd mortgage is valid in favor of the appellees.
Ruling
The mortgage contract should be read in its entirely. If so read, it is at once seen that while the making of the 2nd mortgage except with the written consent of the mortgage is prohibited , the contract continues and states the penalty for such violation namely, it gives to the mortgage the right immediately foreclose mortgage. It does not give the mortgages the right to treat the second mortgage as null and void.
The orders of CFI of Pangasinan are affirmed with cost against the appellant.
OBLIGATIONS AND CONTRACTS 