Kathryn Punongbayan-Akmad Bulacan State University College of Law Title: Abella v.

Francisco Facts: Francisco had obligations due on December 1928 to generate funds he sold lots 937 to 945 of ala !state to Abella. "n "ct. 31 Francisco and Abella signed the follo#ing document$ %eceived &a'ment of (5)) from *ulio Abella as &a'ment on account for the said lots+ due on or before Dec. 15, 1928, e-tendible 15da's thereafter. otal debt #as around (21,.)) As of /ov. 1928 Abella had &aid (915.34 Francisco e-ecuted a &o#er of attorne' in favor of 0abanta because he #as in 1ebu on December 27+Francisco2s instructions to 0abanta #ere to inform Abella that the o&tion #ould be considered cancelled if he failed to ma3e full &a'ment and to return to him #hat he has &aid thus far+ if Abella #ere to &a' the full amount 0abanta #as instructed to sign all the documents re4uired b' the 5ureau of 6ands for the transfer of o#nershi& of the said lots. 0abanta informed Abella of these instructions+ Abella as3ed for an e-tension of the &eriod of &a'ment to #hich 0abanta agreed, giving him until *an. 5 1929. Abella did not offer &a'ment until *an. 9+ 0abanta refused to acce&t Abella2s &a'ment and returned to the latter b' chec3 the sum of (915.34 #hich he &aid &reviousl'. Abella brought an action to com&el the e-ecution of the sale in his favor, #hich #as denied b' the court+ hence this a&&eal. Issue: 7hether or not time is an essential element of this contract for #hich the failure to &a' on time 8ustifies its rescission. Held: 9es, time #as an essential element in this contract. 6o#er court held that since this contract #as an o&tion to sell, the &eriod #as an essential consideration+ this court2s o&inion is divided as to #hether this contract is an o&tion or a sale, but it agrees that time is essential. :t should be noted that Francisco had obligations due on December 1928 for #hich he e-&ected to use the &a'ment on the said lot