Republic of the Philippines v. Antonio V. Bañez

Summary

This case involves a land purchase dispute where respondents contracted to sell property to Cellophil Resources Corporation in 1981 but failed to deliver the certificate of title. After CRC's government takeover, the Privatization and Management Office sued for specific performance in 2000. Lower courts dismissed the case as time-barred under the 10-year prescriptive period. The Supreme Court reversed, finding that the agent Hojilla's 1984 acknowledgment letter and subsequent demand letters effectively interrupted prescription under Article 1155 of the Civil Code. The Court applied agency principles to establish Hojilla's apparent authority and held that the complaint was timely filed. This decision reinforces the importance of written acknowledgments and demands in interrupting prescriptive periods, and clarifies agency principles in contractual obligations involving real property transactions.