In A. Francisco Realty vs. Court of Appeals, the Supreme Court of the Philippines ruled that a contract labeled as a “pacto de retro sale” was actually an equitable mortgage. The stipulation for automatic transfer of property ownership upon default was deemed a pactum commissorium, which is prohibited under Article 2088 of the Civil Code.
A. Francisco Realty vs. Court of Appeals [October 30, 1998] Read More »
In Roberts vs. Papio, the Supreme Court of the Philippines held that a contract labeled as an absolute sale cannot later be claimed as an equitable mortgage if the seller initially acknowledged it as a pacto de retro sale. The Court emphasized that judicial admissions prevent parties from changing their stance during proceedings.
In Abilla v. Gobonseng, the Supreme Court held that a seller who consistently claims a transaction is an equitable mortgage cannot later exercise the right to repurchase under Article 1606 of the Civil Code after the contract is judicially declared a pacto de retro sale.
In Cebu State College of Science and Technology v. Misterio, the Supreme Court ruled that the right to repurchase in a pacto de retro sale, contingent on a suspensive condition, must be exercised within four years from the condition’s occurrence or ten years from the contract’s execution, whichever comes first.
Cebu State College of Science and Technology vs. Misterio [June 17, 2015] Read More »
