Pedro Magayano v. Tomas Gapuzan

Summary

This case involves a dispute over the right to repurchase land under a sale with pacto de retro agreement. Plaintiff Magayano initially pledged land in 1899 to secure a P105 debt. In 1902, defendants Gapuzan paid this amount and entered into an agreement with plaintiff allowing him to work the land as tenant, with the condition that if he failed to repurchase by paying P105 after the 1905 rice harvest, the land would become defendants' absolute property. When plaintiff attempted to repurchase in 1909, defendants refused. The Supreme Court ruled that the repurchase agreement had a clear time limitation - after the 1905 harvest. Since plaintiff failed to repurchase within this stipulated period and showed no compliance with Civil Code requirements, the defendants became the absolute owners of the property. The Court reversed the lower court's decision favoring plaintiff and dismissed the complaint, upholding the validity of the sale with pacto de retro under Civil Code provisions.