GR 57630; (March, 1992) (Digest)
G.R. No. 57630 March 13, 1992
CLARA BADAYOS, petitioner, vs. THE COURT OF APPEALS and Spouses MAXIMO LISONDRA and CONRADA GABISAN, respondents.
FACTS
On March 9, 1973, petitioner Clara Badayos executed a Deed of Sale With The Right to Repurchase over her undivided half portion of a lot in favor of respondent spouses Maximo Lisondra and Conrada Gabisan for P7,400.00. The contract stipulated that the vendor “has the right to repurchase the above described property after two (2) years from and after the execution of this contract for the same amount.” Two years later, on April 17, 1975, the respondents filed an action for consolidation of ownership, alleging the petitioner failed to repurchase within the stipulated period. In her Answer, the petitioner initially alleged the document was an equitable mortgage securing a P4,000.00 loan. On August 4, 1975, she consigned the amount of P7,400.00 with the Clerk of Court. She later filed an Amended Answer, arguing that under the contract’s terms, her right to repurchase arose only after two years from March 9, 1973, and that she validly exercised it by consignation on August 11, 1975. The trial court dismissed the complaint, finding the consignation was made within the contractual period. The Court of Appeals reversed, holding that the right to repurchase expired on March 9, 1975, and the consignation made thereafter was ineffective.
ISSUE
Whether the petitioner exercised her right to repurchase within the period stipulated in the deed of sale with right to repurchase.
RULING
Yes. The Supreme Court granted the petition and reinstated the trial court’s order of dismissal. The Court interpreted the contractual stipulation that the vendor “has the right to repurchase the above described property after two (2) years from and after the execution of this contract.” This means the right to repurchase could only be exercised after the lapse of the two-year period from March 9, 1973, i.e., starting March 10, 1975. Since the contract did not specify a period within which to exercise the right after the two years, Article 1606 of the Civil Code applies, which provides that the redemption period, in the absence of an express agreement, shall be four years from the date of the contract. However, where the right is suspended until after a certain time, the period is counted from the time such right could be exercised. Applying this, the period to repurchase was four years from March 9, 1975, or until March 9, 1979. The petitioner’s consignation of the repurchase price on August 11, 1975, was therefore a valid exercise of her right within that period. The consignation operated as a valid tender of payment, which is sufficient to preserve the right of a vendor a retro.