Joaquin Lafont v. Maria Yia Pascasio

Summary

This case involved a pacto de retro (right of repurchase) contract for half of the Philippine Theater building in Manila. Lafont sold his half-interest to Pascasio with a six-month repurchase option for 1,000 pesos. When Lafont attempted to exercise this right in April 1900, Pascasio refused to execute the resale deed, claiming improper exercise of the right. The Court of First Instance ruled against Lafont, but the Supreme Court reversed, holding that under Civil Code provisions governing pacto de retro contracts, payment and deed execution are simultaneous acts. The Court found Lafont had properly preserved his repurchase rights by offering payment and depositing the money, and ordered Pascasio to execute the resale deed upon payment. The decision clarified important principles regarding the proper exercise of repurchase rights in pacto de retro contracts under Philippine civil law.