Agaton Araneta v. Braulio Montelibano

Summary

This case involves enforcement of a pacto de retro sale contract where Aniceto Montelibano sold land to Hermenegildo Araneta in 1887 with a four-year repurchase right. When the repurchase period expired without payment, Araneta's executor sought to compel execution of an absolute deed and delivery of possession from Montelibano's estate representatives. The defendant claimed the land was sold to Leon Lopez with Araneta's consent during both parties' lifetimes. The trial court dismissed the case, finding the alleged sale to Lopez settled the matter. The Supreme Court reversed on procedural grounds, holding that all heirs of the deceased must be made parties defendant since they have equal interests in the property and can be compelled under Civil Code provisions to execute required documents. The case establishes important principles regarding proper parties in succession disputes and enforcement of contracts against estates.