a. digests.docx

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1 Isinama ko kahit pangSales yung iba kase hndi ko alam baka magamit or shit. Di ko mahanap iba sorry. ANG YU V. CA (December 02, 1994) FACTS: Petitioner Ang Yu Asuncion and Keh Tiong leased a property of respondents Bobby Cu Unjieng, Rose Cu Unjieng and Jose Tan in Binondo Manila. Respondents informed plaintiffs that they are offering to sell the premises and are giving them priority to acquire the same. Respondents 6M for the property but petitioners offered 5M. Respondents acceted and asked petitioners to put in writing the terms and conditions but the latter never provided such. When defendants were about to sell the property, plaintiffs were compelled to file the complaint to compel defendants to sell the property to them. Court recognizes the right of first refusal of the petitioner. Notwithstanding the court’s decision, respondent sold the property to Buen Realty and Development Corporation. ISSUE: WON petitioners can demand specific performance to the respondents to sell to them the property. HELD: The petitioners never accepted the offer when they refused to make the terms and condition of the sale. As such, respondents has the right to sell the property to other parties. Even if petitioners are aggrieved by the failure of private respondents to honor the right of first refusal, the remedy is not a writ of execution on the judgment, since there is none to execute, but an action for damages in a proper forum for the purpose Ang Yu Asuncion et al. vs. Court of Appeals and Buen Realty Corp. (G.R. No. 109125, December 2, 1994) Ponente: Vitug Topic: Sales; Contract of sale v. Contract to sell; remedies for violation of right of first refusal Facts: Petitioners Ang Yu Asuncion et. al. are lessees of residential and commercial spaces owned by the Unjiengs. They have been leasing the property and possessing it since 1935 and have been paying rentals. In 1986, the Unjiengs informed Petitioners Ang Yu Asuncion that the property was being sold and that Petitioners were being given priority to acquire them (Right of First Refusal). They agreed on a price of P 5M but they had not yet agreed on the

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1Isinama ko kahit pangSales yung iba kase hndi ko alam baka magamit or shit. Di ko mahanap iba sorry.ANG YU V. CA (Deember !"# $%%&'(AC)S*Petitioner Ang Yu Asuncion and Keh Tiong leased a property of respondents Bobby Cu Unjieng, Rose Cu Unjieng and ose Tan in Binondo !anila"Respondents infor#ed plainti$s that they are o$ering to sell the pre#ises and are gi%ing the# priority to ac&uire the sa#e"Respondents '! for the property but petitioners o$ered (!" Respondents acceted and as)ed petitioners to put in *riting the ter#s and conditions but the latter ne%er pro%ided such"+hen defendants *ere about to sell the property, plainti$s *ere co#pelled to ,le the co#plaint to co#pel defendants tosell the property to the#" Court recogni-es the right of ,rst refusal of the petitioner" .ot*ithstanding the court/s decision,respondent sold the property to Buen Realty and 0e%elop#ent Corporation"ISSU+*+1. petitioners can de#and speci,c perfor#ance to the respondents to sell to the# the property",+-D*The petitioners ne%er accepted the o$er *hen they refused to #a)e the ter#s and condition of the sale" As such, respondents has the right to sell the property to other parties"2%en if petitioners are aggrie%ed by the failure of pri%ate respondents to honor the right of ,rst refusal, the re#edy is not a *rit of e3ecution on the judg#ent, since there is none to e3ecute, but an action for da#ages in a proper foru# for the purpose Ang Yu Asuncion et al" %s" Court of Appeals and Buen Realty Corp"45"R" .o" 16718(, 0ece#ber 8, 1779:Ponente; Contract of sale %" Contract to sell> re#edies for%iolation of right of ,rst refusal(ats*Petitioners Ang Yu Asuncion et" al" are lessees of residential and co##ercial spaces o*ned by the Unjiengs" They ha%e been leasing the property and possessing it since 17?( and ha%e been paying rentals"@n 17A', the Unjiengs infor#ed Petitioners Ang Yu Asuncion that the property *as being sold and that Petitioners *ere being gi%en priority to ac&uire the# 4Right of Birst Refusal:" They agreed on a price of P(! but they had not yet agreed on the ter#s and conditions" Petitioners *rote to the Unjiengs t*ice, as)ing the# to specify the ter#s and conditions for the sale but recei%ed no reply" Cater, the petitioners found out that the property *as already about to be sold, thus they instituted this case for =peci,c Perfor#ance Dof the right of ,rst refusalE"The Trial Court dis#issed the case" The trial court also held that the Unjieng/s o$er to sell *as ne%er accepted by the 8Petitioners for the reason that they did not agree upon the ter#s and conditions of the proposed sale, hence, there *as no contract of sale at all" .onetheless, the lo*er court ruled that should the defendants subse&uently o$er their property for sale at a price of P11F#illion or belo*, plainti$s *ill ha%e the right of ,rst refusal"The Court of Appeals aGr#ed the decision of the Trial Court"@n the #eanti#e, in 1776, the property *as sold to 0e Buen Realty, Pri%ate Respondent in this case" The title to the property *as transferred into the na#e of 0e Buen and de#anded that the Petitioners %acate the pre#ises"Because of this, Petitioners ,led a #otion for e3ecution of theCA judge#ent" At ,rst, CA directed the =heri$ to e3ecute an order directing the Unjiengs to issue a 0eed of =ale in the Petitioner/s fa%our and nulli,ed the sale to 0e Buen Realty" But then, the CA re%ersed itself *hen the Pri%ate Respondents Appealed"Issues*1" +hether or not the Contract of =ale is perfected by thegrant of a Right of Birst Refusal"8" +hether or not a Right of Birst Refusal #ay be enforced in an action for =peci,c Perfor#ance",eld*1" .o" A Right of Birst Refusal is not a Perfected Contract of =ale under Art" 19(A or an option under Par" 8 Art 19H7 or an o$er under Art" 1?17" @n a Right of Birst Refusal, only the object of the contract is deter#inate" This #eans that no vinculum juris is created bet*een the sellerFo$eror and the buyerFo$eree"8" .o" =ince a contractual relationship does not e3ist bet*een the parties, a Right of Birst Refusal #ay not be enforced through an action for speci,c perfor#ance" @ts conduct is go%erned by the la* on hu#an relations under Art" 17F81 of the Ci%il Code and not by contract la*"Therefore, the =upre#e Court held that the CA could not ha%e decreed at the ti#e the e3ecution of any deed of sale bet*een the Unjiengs and Petitioners".ther /ules# Comments and Disussion*This case is notable because it lays do*n the rules on optionscontracts and right of ,rst refusal as *ell as pro#ises to buy and sell" Birst, the =upre#e Court discussed the stages of thefor#ation of a sales contract, these are;1" .egotiation I co%ers the period from the ti#e the prospecti%e contracting parties indicate interest in the contract to the ti#e the contract is concluded 4perfected:"8" Perfection I ta)es place upon the concurrence of the essential ele#ents thereof" @n a sales contract this is go%erned by Art" 19(A?" Consu##ation I begins *hen the parties perfor# theirrespecti%e underta)ings under the contract cul#inating in the e3tinguish#ent thereofUntil the contract is perfected 4.o" 8:, it cannot, as an independent source of obligation, ser%e as a binding juridical relation" A sales contract is perfected *hen a person, called the seller, obligates hi#self, for a price certain, to deli%er andto transfer o*nership of a thing or right to another, called thebuyer, o%er *hich the latter agrees 4Art 19(A:"Under Art" 19(A, there is no perfection of a sale under a JContract to =ellK" A Contract to =ell is characteri-ed as a conditional sale and the breach of the suspensi%e condition *ill pre%ent the obligation to transfer title fro# ac&uiring obligatory force"?Promises to Buy and SellUnconditional mutual promise to buy and sell I As long as theobject is #ade deter#inate and the price is ,3ed, can be obligatory on the parties, and co#pliance there*ith #ay accordingly be e3acted" The Right of Birst Refusal falls under this classi,cation"Accepted unilateral pro#ise I @f it speci,es the thing to be sold and the price to be paid and *hen coupled *ith a %aluable consideration distinct and separate fro# the price, is *hat #ay properly be ter#ed a perfected contract of option" This contract is legally binding" 4Par" 8 Art" 19(A: .oteho*e%er, that the option is a contract separate and distinct fro# the contract of sale" 1nce the option is e3ercised beforeit is *ithdra*n, a bilateral pro#ise to sell and to buy ensues and both parties are then reciprocally bound to co#ply *ith their respecti%e underta)ings"Ofers with a Period+here a period is gi%en to the o$eree *ithin *hich to accept the o$er, the follo*ing rules generally go%ern;1" @f the period is not itself founded upon or supported bya consideration I 1$eror #ay *ithdra* o$er at any ti#e before its acceptance 4or )no*ledge of its acceptance:" Lo*e%er, the right to *ithdra* #ust not be e3ercised *hi#sically or arbitrarily other*ise it can gi%e rise to da#ages under Art" 17 of the .e* Ci%il Code8" @f period is founded on a separate consideration I This is a perfected contract of option" +ithdra*al of the o$er *ithin the period of the option is dee#ed a breach of the contract of option 4not the sale:" J@f, in fact, the optionerFo$eror *ithdra*s the o$er before its acceptance 4e3ercise of the option: by the optioneeFo$eree, the latter #ay not sue for speci,c perfor#ance on the proposed contract 4JobjectK of the option: since it has failed to reach its o*n stage of perfection" The optionerFo$eror, ho*e%er, renders hi#self liable for da#ages for breach of the option"K?" 2arnest #oney I This is not an o$er *ith a period" 2arnest #oney is distinguished fro# the option contract if the consideration gi%en *ill be considered as a part of the purchase price of the object of the sale" 2arnest #oney is e%idence of a perfected contract of sale" 4Art" 19A8:Right of First RefusalThis is Jan inno%ati%e juridical relationK because it is neither a perfected contract of sale under Art" 19(A nor an option contract under par" 8 Art 19H7" The object #ight be #ade deter#inate, the e3ercise of the right, ho*e%er, is dependenton the o$eror/s e%entual intention to enter into a binding juridical relation *ith another but also on ter#s and conditions such as price" There is no juridical tie or vinculum juris"Breach of the right cannot justify correspondingly an issuanceof a *rit of e3ecution under a court judge#ent that recogni-es its e3istence, such as in Ang Yu Asuncion" An action for =peci,c Perfor#ance is not allo*ed under a Right of Birst Refusal because doing so *ould negate the indispensable ele#ent of consensuality in the perfection of contracts"This right is not inconse&uential because it gi%es right to an action for da#ages under Art" 17"Other Acts that Wont BindPublic ad%ertise#ents or solicitations I Construed as #ere in%itations to #a)e o$ers andMor proposals"9G./. no. $01213 (ebruary !3# "!$!Daasin 4. Daasin,erald 5lak Daasin#petitioner 4s.Sharon Del 6undo Daasin #respondent (AC)S*1n April 1779, petitioner and respondent got #arried here in the Philippines" The follo*ing yearrespondent got pregnant and ga%e birth to a baby girl *ho# they na#ed =tephanie" @nune of 1777respondent sought and obtained fro# the @llinoisCourt a di%orce decree against petitioner" @n its ruling,the @llinois court dissol%ed the #arriage of petitioner and respondent, a*arded to respondent solecustody of =tephanieand retained jurisdiction o%er the case for enforce#ent purposes"1n 8Ath of anuary 8668, petitioner and respondente3ecuted in !anila a contract 4Agree#ent:for the joint custody of =tephanie" T*o years after, petitioner sued respondent in the Regional TrialCourt of !a)ati City" Petitioner clai#ed that respondent e3ercised sole custody o%er =tephanie"Respondent sought the dis#issal of the co#plaint due to lac) of jurisdiction, since @llinois Court hold the jurisdiction in enforcing the di%orce decree"ISSU+*1" +hether the Trial Court ha%e the jurisdiction o%er the case8" +hether the agree#ent or contract is %alid ,+-D*Case *as dismissed dated !arch 1, 866("Court/s Rationale;@t is precluded fro# ta)ing cogni-ance o%er suit considering the @llinois Court/s retention of jurisdiction to enforce its di%orce decree, including its order a*arding sole custody of =tephanie to respondent" The di%orce decree is binding on petitioner follo*ing the Jnationality ruleK pre%ailing in this jurisdictionAgreement is 4oid The agree#ent is %oid for contra%ening Article 86?( paragraph ( of the Ci%il Codeprohibiting co#pro#ise agree#ents on jurisdiction"(AC)S*Petitioner sought reconsideration his ne* argu#ent is that the di%orce decree obtained byrespondent is %oid"Thus, the di%orce is no bar to the trial court/s e3ercise of jurisdiction o%er the case" @nits order on une 8?, 866(, the trial court denied reconsideration because petitioner is under the la*s of his nationality, *hich is A#erican" Lence, the petitioner ,led alternati%e theories for the %alidity of theagree#ent;