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Gloria-Diaz, et al vs. Court of Appeals, e t al

PRUDENCIA GLORIA-DIAZ and EUGENIO DIAZ, petitioners, vs. HON. COURT OF APPEALS, FELIX B. MAGALONG and ISIDRA G. MAGALONG, respondents.

G.R. No. L-48198 | 1978-07-31

D E C I S I O N

TEEHANKEE, J:

The Court sets aside respondent appellate court's resolution which countermanded its original decision declaring that in the light of the admitted facts of record the transaction between the parties was truly and in reality a simple loan and equitable mortgage regardless of the nomenclature given thereto as a pacto de retro sale. The original decision correctly held that it is not the parties but the law that determines the juridical situation created by the parties through their contract and the rights and obligations arising therefrom.

On May 8, 1972, petitioners-spouses Prudencia Gloria-Diaz and Eugenio...