1. WHERE THE INTENTION OF THE PARTIES IS CLEARLY REVEALED IN THE CONTRACT. — Where the instrument reveals clearly the intention of the parties, as where it concerns with a sale with a right reserved by the vendor to repurchase the land sold, there is no room for doubt or interpretation as to the intent of the parties.

This is an appeal from a judgment dismissing the plaintiffs’ complaint; holding that the defendant is the lawful owner of the parcel of land in litigation; and directing the Register of Deeds for the province of Leyte to cancel original certificate of title No. 16923 issued by him in the name of Pedro Dapiton married to Carmen Libran, and upon payment of the fees to issue in lieu thereof another in the name of the defendant Nicolas Veloso, without costs.

The claims of the parties are stated in the stipulation of facts which reads, as follows:chanrob1es virtual 1aw library

COME now the parties plaintiffs and defendant by their respective undersigned counsels and to this Honorable Court respectfully submit the following stipulation of facts:chanrob1es virtual 1aw library

1. That the parties plaintiffs and defendant have agreed on the following facts, to wit:chanrob1es virtual 1aw library

(a) That the land in question is registered in the name of Pedro Dapiton under Original Certificate of Title No. 16923 which is hereto attached as an integral part of this stipulation as Appendix "A" ;

(b) That the plaintiffs are the heirs in law of said Pedro Dapiton;

(c) That the land in question as described in paragraph 4 of the complaint is assessed under Tax Declaration No. 4636 for P570;

(d) That the land in question was sold with a right to repurchase by the registered owner thereof Pedro Dapiton on the 11th day of March, 1936 in favor of one Benvenuto Managbanag as evidenced by a public document there for which is hereto attached and made an integral part hereof as Appendix "B" and about which herein plaintiffs admit its authenticity and due execution;

(e) That on the 14th day of July of 1936 aforesaid Benvenuto Managbanag as vendee-a-retro of the land in question sold his rights thereover in favor of Arsenio Veloso, now deceased, under the same terms as Appendix "B," as evidenced by a public document therefor which is hereto attached and made an integral part hereof as Appendix "C" and about which herein plaintiffs hereby admit its authenticity and due execution;

(f) That the plaintiffs herein admit that neither Pedro Dapiton, now deceased, nor his heirs in law by themselves and/or by any authorized representatives have repurchased the land in question either from Benvenuto Managbanag or Arsenio Veloso within the period stipulated in aforementioned Appendices "B" and "C" until at present;

(g) That the defendant is the heir in law of Arsenio Veloso and the land in question had been allotted the defendant as his share from the estate of the late Arsenio Veloso;

(h) That the defendant by himself and or by his agents as well as by his predecessors in interest have been in the open, continuous and uninterrupted possession of the premises of the land in question since March 11, 1936 by virtue of aforementioned Appendices "B" and "C," having received the produce regularly therefrom;

(i) That the aforementioned documents, Appendices "B" and "C" have not been duly registered nor annotated at the back of Original Certificate of Title No. 16923, Appendix "A," covering the land in question;

2. That the only question at issue in the present case is whether or not the document executed by Pedro Dapiton in favor of Benvenuto Managbanag on March 11, 1936 (Appendix "B") is a conditional sale as to pass real and effective title to the land in question in favor of the successors in interest of the therein vendee-a-retro after the conditions therein have not been complied with, or whether said Appendix "B" is merely an equitable mortgage, on its face and on the tenor of the language therein contained.

The instrument which is the subject matter of the controversy reads, as follows:chanrob1es virtual 1aw library

Que yo, Pedro Dapiton, mayor de edad, viudo y vecino del barrio Caridad del Municipio de Baybay, Provincia de Leyte, Islas Filipinas, en consideracion a la suma da CIENTO SETENTA Y OCHO (P178.00) PESOS en moneda filipina, que me ha pagado y he recibido con mi entera satisfaccion del Sr. Benvenuto Managbanag, tambien mayor de edad, casado con Hilaria Palermo, vecino del municipio de Baybay, Leyte, I. F., por las presente,

HAGO CONSTAR:chanrob1es virtual 1aw library

Que vendo, cedo y traspaso en calidad de venta con pacto de retro por 5 años, a contar desde la fecha de esta escritura al mencionado Benvenuto Managbanag, sus herederos y causahabientes, la parcela de terreno secano o maizal en el barrio Caridad, sitio Hipgup, del municipio de Baybay, cuya descripcion mas detallada es como sigue:chanrob1es virtual 1aw library

Al Norte, confina con el riachuelo sin nombre;

Al Este, con Arsenio Veloso;

Al Sur, con Arsenio Veloso y

Al Oeste, con Magdaleno Mantua;

Es conocido como Lote No. _______ y Tax No. _______

Sus mojones son los postee de cemento por la medicion Catastral;

Del que terreno soy propietario y lo adquiri por herencia de mi difunta madre, posesionando quieta y pacificamente hasta la fecha.

Hago constar tambien, que queda convenido y pactado con el mencionado Benvenuto Managbanag, sus herederos y causahabientes, que si yo lo devolviere o hiciere pagar la suma de P178.00 en o antes de 5 años, como se ha dicho arriba, el o sus representantes me otorgara una escritura de retroventa y quedara nula o de ning