Mariano Gonzaga v. Felisa Garcia

Summary

This case involves a complex property ownership dispute arising from multiple pacto de retro transactions. Francisco originally sold land to Martin under pacto de retro, but Francisco's repurchase right was attached and sold at execution sale to Del Rosario. When Francisco later repaid Martin to cancel the pacto de retro, the question arose whether this payment benefited Del Rosario, who had acquired Francisco's repurchase right. The Supreme Court held that appellants, who purchased from Del Rosario, acquired no registerable title because Francisco's payment to Martin was not made for Del Rosario's benefit under Civil Code article 1158. Del Rosario had no obligation to repurchase, only a right, making him not a debtor for whom Francisco could make payment. The Court affirmed the denial of land registration.