Leal vs.

IAC and Santiago

FACTS:
The “Compraventa” gave right to Leal to own three parcels of land formerly
owned by Santiago. The mentioned contract executed by Santiago in 1941,
provides the prohibition of sale of the land by Leal to other parties other than
Santiago, his heirs or successors.

ISSUE:
Whether or not under the “Compraventa,” a right of repurchase in favor of the
private respondent exists.

RULING:
No. Under Article 1508 of the Civil Code of Spain (which is the same as Art.
1606 of the Civil Code of the Philippines), the right to redeem shall last four (4)
years from the date of the contract. This provision prevents anyone from
perpetually restricting the owner’s right to freely dispose of his properties,
which is contrary to Public Policy. The Civil Code of Spain, particularly Article
1255, nullifies contracts contrary to Public Policy, as much as the Civil Code of
the Philippines, Article 1306.