Benos v. Lawilao

G.R. No. 172259; December 5, 2006

FACTS:

Benos sold their lot to Lawilao with right to repurchase within 18 months from date of execution. In the contract, Lawilao is supposed to pay the loan of the Benos to a bank but he failed to pay the same. Lawilalo filed an action for consolidation of ownership. In their counterclaim, the Benos rescinded the contract.

ISSUE:

Whether the requirement of notice under Article 1592 is satisfied by filing a counter claim

HELD:

Yes. The counterclaim of the Benos spouses in their answer satisfied the requisites for the judicial rescission of the subject Pacto de Retro Sale. The same is also true for a cross-claim.