G.R. No. L‑3270
November 12, 1906

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FACTS
– Parties Luisa Ramos (plaintiff‑appellee) vs. Carlos Varanda and Sy Boco (defendants‑appellants).
– Background Ramos’ minor daughter was abducted by Eduardo Mariano, who was convicted and ordered to pay ₱1,000 indemnity.
– Negotiation Varanda, employed by Mariano, persuaded Ramos to grant a pardon in exchange for ₱3,000. Ramos agreed to pardon in return for ₱2,000 (the indemnity) plus ₱1,000 “settlement.”
– Performance After the pardon was accepted by the Supreme Court (Dec 22, 1904) and Mariano released, his brother deposited ₱2,000 with Boco “in trust” to satisfy Varanda’s promise to Ramos.
– Dispute Ramos demanded the ₱2,000 from Varanda and Boco; both denied liability. The trial court found Varanda had promised the payment and Boco held the money in trust, ordering payment of ₱2,000 with 6% yearly interest from July 8, 1905 and costs.

ISSUE
Whether a binding contract existed between Ramos and Varanda that obligated Varanda (and consequently Boco, as trustee) to deliver ₱2,000 to Ramos upon the execution of the pardon, and whether the lower court’s judgment awarding that sum with interest is supported by the evidence.

RULING
The Supreme Court affirmed the trial court’s judgment. It held that:

1. Contractual Obligation Sufficient evidence established a clear agreement: Ramos would grant a pardon in consideration of ₱2,000; Varanda accepted and arranged payment via Boco’s trust.
2. Trust Relationship Boco received the funds expressly “in trust” for Ramos, creating a fiduciary duty to deliver the amount.
3. Liability Both Varanda and Boco are justly indebted to Ramos for the ₱2,000.

Consequently, the defendants are ordered to pay Ramos ₱2,000 with interest at 6% per annum from July 8, 1905, plus the costs of suit. The judgment is affirmed with costs.