Civil Code Art. 1603: Extinguishment of Sale

Statute: Civil Code
Article: Art. 1603
Topic: Extinguishment of Sale
Status: In force
Book: BOOK IV Obligations and Contracts
Title: TITLE VI SALES
Chapter: CHAPTER 7 Extinguishment of Sale
Year: 1949
Cited by: Multiple Supreme Court decisions

The provision

In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage. (n)

Intellegal Wiki · In plain terms

When it is doubtful whether a deal is a genuine sale that lets the seller buy the property back, or is really a disguised loan secured by the property, the law resolves the doubt by treating it as an equitable mortgage. This protects a borrower from losing property that was only meant as security for a debt.

An editorially maintained plain-language explanation of this provision — not legal advice.

Cases applying this article

Raymundo M. Dapiton v. Court of Appeals G.R. No. 107259
Sps. Ester Santiago v. Aida G. Dizon G.R. No. 172771
Amelia S. Roberts v. Martin B. Papio G.R. No. 166714

Related provisions in this Chapter

Civil Code, Art. 1604 Extinguishment of Sale
Civil Code, Art. 1601 Extinguishment of Sale
Civil Code, Art. 1605 Extinguishment of Sale
Civil Code, Art. 1606 Extinguishment of Sale
Civil Code, Art. 1600 Extinguishment of Sale
Civil Code, Art. 1607 Extinguishment of Sale
Civil Code, Art. 1616 Extinguishment of Sale
Civil Code, Art. 1619 Extinguishment of Sale

Civil Code, Art. 1603 is found in CHAPTER 7 Extinguishment of Sale of TITLE VI SALES of BOOK IV Obligations and Contracts of the Civil Code of the Philippines (Republic Act No. 386).

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Reviewed by the Intellegal Legal Team for currency against amending laws and Supreme Court jurisprudence.

Research aid — not legal advice. Verify the current text against the Official Gazette. Provisions may have been amended or repealed. Using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer.