8.

Boston Bank vs Manalo

Facts:
The Xavierville Estate, Inc. (XEI) was the owner of parcels of land in Quezon City,
known as the Xavierville Estate Subdivision, with an area of 42 hectares. XEI
caused the subdivision of the property into residential lots, which was then
offered for sale to individual lot buyers.
On September 8, 1967, XEI, through its General Manager, Antonio Ramos, as vendor,
and The Overseas Bank of Manila (OBM), as vendee, executed a Deed of Sale of Real
Estate over some residential lots in the subdivision, including Lot 1, Block 2,
with an area of 907.5 square meters, and Lot 2, Block 2, with an area of 832.80
square meters. The transaction was subject to the approval of the Board of
Directors of OBM, and was covered by real estate mortgages in favor of the
Philippine National Bank as security for its account amounting to P5,187,000.00,
and the Central Bank of the Philippines as security for advances amounting to
P22,185,193.74.[4] Nevertheless, XEI continued selling the residential lots in the
subdivision as agent of OBM.