Maria Yadao v. Marcelo Yadao

Summary

This case involved a dispute over the right to repurchase land sold under a pacto de retro arrangement. Maria Yadao sold land to Marcelo Yadao in 1898 with the right to repurchase whenever she had money. When she later attempted to exercise this right, the trial court sustained a demurrer, ruling that Civil Code Article 1508 limits such redemption rights to a maximum of ten years. The Supreme Court affirmed, emphasizing that pacto de retro creates a suspension of title and that allowing such uncertain conditions to continue indefinitely would be against public policy. The case establishes the principle that redemption rights under pacto de retro sales are strictly limited by statutory time periods, and failure to exercise such rights within the prescribed period results in the irrevocable transfer of title to the vendee.