Cabrera v. American Colonial Bank

Citations

• 214 U.S. 224
• 29 S. Ct. 623
• 53 L. Ed. 974
• 1909 U.S. LEXIS 1911

Syllabus

<p>*The provisions of the Spanish Civil Code, which was in force in Porto Rico until 1902, to the effect that the obligations of a contract must be complied with according to their terms and that evidence cannot be introduced to vary them are practically the same as the principles of the common law and are subject to similar well-recognized exceptions.</p> <p>The face of an instrument is not always conclusive of its purpose; and, in equity, extrinsic evidence is admissible to'show that a conveyance, absolute in form, is intended as security; and in this case testimony addressed to the consideration of the bill of sale, and showing that although on its face the vendee agreed to give up its debt the real consideration was to help the vendor and give the vendee additional security, would be admissible under our own, as well as the Spanish, law; and qucere whether the Spanish law does not permit oral testimony, as to all the terms of a contract upon an equal footing with the written instrument itself, to an extent beyond that which our own law permits.'</p> <p>One guaranteeing a loan by mortgage is not released from the guaranty ' because the loan is subsequently further secured by a bill of sale of . other property, absolute on its face but in fact given as.additional. security, by the principal debtor.</p> <p>In Porto Rico one can mortgage an interest in a succession after it has accrued notwithstanding it has not been actually assigned or delivered to the mortgagor; this is not prohibited by articles 108 of the mortgage law, nor are-articles 110, 111 of that law applicable thereto. The liability of one who binds himself with-others for the whole debt extends to the whole and not tó a part of the debt.</p> <p>3 Porto Rico, 14, affirmed.</p>