Lino Gonzaga, Demandante-Apelado, Contra Juan Go Y Victorina Cabelin De Go, Demandados-Apelantes

Summary

This 1940 Supreme Court En Banc case involves a property dispute over the right of repurchase under a pacto de retro agreement. Plaintiff Gonzaga sold land in 1930 with the right to repurchase 'at any time' but when he attempted to exercise this right in 1936, defendants refused claiming a four-year limitation period had expired. The Supreme Court affirmed the trial court's ruling that under Article 1508 of the Civil Code, when parties stipulate an indefinite repurchase period, it cannot exceed ten years. The Court also held that when buyers categorically refuse repurchase, the seller is not obligated under Article 1518 to formally offer the repurchase price. This case establishes important precedent on interpreting indefinite repurchase periods in pacto de retro contracts and the application of Civil Code provisions governing such agreements.