Bienvenida Pangilinan v. Fidel Ramos

Summary

This case involves a property dispute over Lot No. 506 in Macabebe, Pampanga. In 1965, Tarcilla Ramos executed a deed of sale with conventional redemption to defendants for P1,000.00 with a five-year redemption period. Tarcilla disappeared for over nine years, during which the redemption period expired and defendants built a house on the property. When Tarcilla was found, plaintiffs sought recovery of possession, claiming the contract was invalid. The Court of First Instance ruled in favor of defendants, but the Court of Appeals modified the decision, declaring it a valid sale with right of repurchase and allowing redemption within thirty days of final judgment. The Supreme Court affirmed, applying Article 1606 of the Civil Code which permits redemption within thirty days from final judgment when the contract's true nature was disputed. The decision clarifies the distinction between absolute sales and sales with conventional redemption, emphasizing literal interpretation of clear contract terms.