Luciano Vitug Dimatulac v. Dolores Coronel

Summary

Dimatulac sold property to Coronel in 1911 under pacto de retro with 5-year redemption period and rental obligations. When Dimatulac defaulted on rent, Coronel sued for possession. They entered a 1915 compromise agreement where Dimatulac surrendered property to satisfy past-due rent. In 1916, Dimatulac offered to redeem, which Coronel refused claiming absolute ownership. The Supreme Court held that by pursuing the compromise agreement recognizing rent as subsisting debt, Coronel waived the forfeiture clause in the original contract. The redemption right remained valid, and the compromise agreement only abrogated the lease provision without extinguishing the right to repurchase. The decision demonstrates the courts' preference for preserving redemption rights in pacto de retro contracts.