Natino v.

Intermediate Appellate Court

G.R. No. 73573
May 3, 1991
Davide, Jr.

Doctrine:
A commitment by a bank to resell a property within a specified period, although accepted by the party in
whose favor it was made, is considered an option not supported by a consideration distinct from the
price; thus, not binding upon the promissor and is void.

Facts:
Petitioner spouses Trinidad and Epifanio Natino executed a real estate mortgage in favor of private
respondent Rural Bank of Aguilar as security for a loan of P2,000. Petitioners failed to pay the loan on
the due date causing respondent bank to apply for the extrajudicial foreclosure of the mortgage. At the
foreclosure sale, respondent bank was the highest and winning bidder. A final Deed of Sale was then
issued later by the sheriff since no redemption was made by petitioners within the two-year period
given them.
Subsequently, petitioners filed a complaint against respondent bank seeking the annulment of the Final
Deed of Sale issued in favor of the latter on the ground that they were granted an extension of the
redemption period but respondent bank denied the same.
The lower court ruled in favor of petitioners but was reversed by respondent Intermediate Appellate
Court. Hence, the present appeal by the petitioners.

Issue:
Whether or not the petition be granted

Held:
NO. The Court ruled that the petition is devoid of merit since the attempts to redeem the property
subject of the mortgage were done after the expiration of the redemption period and that no extension
of the said period was granted to petitioners by respondent bank. Furthermore, the Court held that a
commitment by a bank to resell a property within a specified period, although accepted by the party in

whose favor it was made, is considered an option not supported by a consideration distinct from the
price; thus, not binding upon the promissor and is void.