G.R. No. 6708 , September 22, 1911
MARIA YADAO, plaintiff-appellant, vs. MARCELO YADAO, defendant-appellee.

FACTS

Maria Yadao filed a complaint alleging that in February 1898, she sold a parcel of land to Marcelo Yadao for P4.50, with the condition that she could repurchase it whenever she had the money. The defendant took possession of the land under this agreement. The defendant demurred to the complaint, arguing that it failed to state a cause of action. The Court of First Instance of Ilocos Sur sustained the demurrer and, after the plaintiff failed to amend within the prescribed time, dismissed the complaint. Maria Yadao appealed.

ISSUE

Whether the complaint states a cause of action, considering that the right to repurchase under a pacto de retro sale is subject to a statutory time limit.

RULING

No, the complaint does not state a cause of action. The Supreme Court affirmed the trial court’s decision. Under Article 1508 of the Civil Code, the right to repurchase in a pacto de retro sale must be exercised within a maximum period of ten years from the date of the contract, in the absence of a shorter agreed period. This limit is based on public policy, which seeks to prevent indefinite uncertainty regarding land titles. Since the sale occurred in February 1898 and the action was filed beyond the ten-year period (the complaint was filed in 1910), Maria Yadao’s right to repurchase had already expired. The defect was apparent on the face of the complaint, making the demurrer proper. The judgment dismissing the complaint was affirmed, with costs against the appellant.