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Land Sale Contract Dispute Ruling

The document involves three parcels of land that were sold with an annotation allowing only the Santiago brothers or their heirs to repurchase the land. When the buyer Cirilio Leal died, his six children inherited the land. The Supreme Court ruled the annotation was contrary to law and public policy because it placed an unreasonable restriction on the owner's right to freely dispose of their property, as stipulated in Article 1306 of civil law.
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0% found this document useful (0 votes)
234 views1 page

Land Sale Contract Dispute Ruling

The document involves three parcels of land that were sold with an annotation allowing only the Santiago brothers or their heirs to repurchase the land. When the buyer Cirilio Leal died, his six children inherited the land. The Supreme Court ruled the annotation was contrary to law and public policy because it placed an unreasonable restriction on the owner's right to freely dispose of their property, as stipulated in Article 1306 of civil law.
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2. Leal v. IAC, G.R. No.

L-65425
A document entitled “Compraventa”, involving three parcels of land, was sold with annotations
of right to repurchase only by the Santiago brothers themselves or by their heirs to Cirilio Leal
the deceased father of some of the petitioners, when Cirilo died on December 10, 1959, the
subject lands were inherited by his six children.
The annotation at the back of the title is contrary to law. The condition present on the
contract is contrary to public policy because of the restriction to the right of ownership,
specifically the owner’s right to freely dispose of his properties. According to Art. 1306, which
states: “That contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy.”

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