13. Classify furniture-making machinery as property

Salvador, a timber concessionaire, built on his lot a warehouse where he processes and stores his timber for shipment. Adjoining the warehouse is a furniture factory owned by NARRAMIX of which Salvador is a majority stock­holder. NARRAMIX leased space in the warehouse where it placed its furniture-making machinery.

1. How would you classify the furniture-making machinery as property under the Civil Code? Explain.

2. Suppose the lease contract between Salvador and NARRAMIX stipulates that at the end of the lease the machinery shall become the property of the lessor, will your answer be the same? Explain.