Juan Agas v. Caridad Sabico

Summary

This case involved a property dispute between lawyer Juan Agas and his wife versus their laundrywoman Caridad Sabico over whether their transaction constituted a sale or equitable mortgage. Sabico, having limited education and needing money for property payments, executed several documents purporting to sell her share to the Agas spouses. However, she remained in possession, continued paying taxes, and the deed was registered only after eight years. All three court levels unanimously ruled it was an equitable mortgage, not a sale, based on the totality of circumstances including Sabico's necessitous condition, lack of proper legal explanation, continued possession and tax payments, and the overall conduct of the parties. The Supreme Court emphasized that contract interpretation depends on parties' true intention as shown by their actions, not merely the document's terminology.