This case has been cited 2 times or more.
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2002-08-01 |
QUISUMBING, J. |
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| Deeds of Sale of Realty with Right to Repurchase allegedly executed by private respondents in petitioner's favor. Petitioner therein alleged that as respondents failed to repurchase the property on the agreed period, she then became its owner and was therefore entitled to consolidate ownership over it. However, private respondents denied selling the two parcels of land to petitioner. They alleged that petitioner sold to them an Isuzu Elf truck which needed some repairs. As they didn't have the money for repairs at that time, petitioner loaned to them P60,000 with 4 percent interest. To secure its payment, petitioner required respondents to sign the two Deeds of Sale with Right to Repurchase. In that case, we ruled that the two deeds of sale constituted an equitable mortgage. We applied paragraph 6, Article 1602 of the Civil Code, to wit: In any other case where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation. The contract of sale with right to repurchase was in reality intended to secure the payment of the P60,000 loan. In Misena vs. Rongavilla,[9] petitioner sold to respondent an undivided one-half portion of lot 315 of the Naic Estate Subdivision in Cavite, evidenced by a Deed of Sale. Later on, respondent obtained a loan from and mortgaged the same property | |||||
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2002-08-01 |
QUISUMBING, J. |
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| Deeds of Sale of Realty with Right to Repurchase allegedly executed by private respondents in petitioner's favor. Petitioner therein alleged that as respondents failed to repurchase the property on the agreed period, she then became its owner and was therefore entitled to consolidate ownership over it. However, private respondents denied selling the two parcels of land to petitioner. They alleged that petitioner sold to them an Isuzu Elf truck which needed some repairs. As they didn't have the money for repairs at that time, petitioner loaned to them P60,000 with 4 percent interest. To secure its payment, petitioner required respondents to sign the two Deeds of Sale with Right to Repurchase. In that case, we ruled that the two deeds of sale constituted an equitable mortgage. We applied paragraph 6, Article 1602 of the Civil Code, to wit: In any other case where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation. The contract of sale with right to repurchase was in reality intended to secure the payment of the P60,000 loan. In Misena vs. Rongavilla,[9] petitioner sold to respondent an undivided one-half portion of lot 315 of the Naic Estate Subdivision in Cavite, evidenced by a Deed of Sale. Later on, respondent obtained a loan from and mortgaged the same property | |||||