BENTIR v.

LEANDE

330 SCRA 691

Facts: Respondent Leyte Gulf Traders, Inc. entered into a contract of lease of a parcel of land with
petitioner Bentir for a period of 20 years starting May, 1968 and was extended for another 4 years, May
1992. But on May 1989, petitioner sold the leased premises. Respondent questioned the sale and sought
the reformation of the expired contract of lease since its lawyer inadvertently omitted to incorporate in
the contract the verbal agreement between the parties that in the event that the petitioner leases or
sells the lot after the expiration of the lease, respondent has the right to equal the highest price.

Issue: Whether or not the respondent is entitled to the reformation of the contract.

Ruling: No, reformation is barred by prescription. The prescriptive period for reformation of an
instrument is ten years under Article 1144 of the Civil Code. Here, respondent had 10 years from 1968 to
file an action for reformation but it did only in 1992 or 24 years after the cause of action accrued, thus
its cause of action has become stale.