In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage. (n)
Civil Code · Book IV: Obligations and Contracts · Title VI: Sales
Chapter 7: Extinguishment of Sale · Sec. 1: Conventional Redemption
Current text, as of October 24, 2026
In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage. (n)
Consolidated by Alleba from the text of Republic Act No. 386 (Lawphil and the Supreme Court E-Library). Book I provisions on marriage, family relations and parental authority were repealed by the Family Code (Executive Order No. 209, 1987) and are shown for reference only. For information and research only, and not legal advice. For certified copies, refer to the Official Gazette or the issuing agency.