On November 27, 1997, Xian purchased from Yian Inc. a brand new white double cab motor vehicle , 1996 model in the amount of P508,000. A contract of sale was made and Xian made a down payment of P152, 400.00 leaving a balance of P355,600.00 which was payable in 36 months with 54% interest. The vehicle was delivered to Xian two days later. On October 18, 1998, Xian demanded the replacement of the engine of the vehicle because it developed a crack after traversing Marcos Highway during a heavy rain.

On April 20, 1999, Xian filed a complaint for damages against Yian Inc. Yian Inc. moved to dismiss the case on the ground that the action had prescribed.

DID XIAN'S CAUSE OF ACTION PRESCRIBE