Larru oEt $ales

School Year 2013-?014, First Semester

Aris L. Gulapa
Section 2-C.

Essay. Please explain ysur answer with legal basis. 5O points

II.

(total).

1.

On July 25,2A13,A and B entei''ed intct a notarizc*tl contract of sale irlr which
A agreed to sell to B A's house *''rrX ir:ii. lt.'cnfed at +t25 Flamingo St., Corinthian
Gardens (worth PhP20,000,000) i'*r *niy PhP1,000,00CJ. B paid the purchase price,
and lived in the house and enjoyed it" preacefr.rlly. On July 24, 20L4, A wrote B
demanding that B return tlre house to A claiming that this is an equitable mortgage.

a.
b.

[s A correct? 5 Points.
What ctlntract is involved here? 5 points.

On Janua ry L, 2A73, M tolcl N that N can sell M's gated land for at least
php10,000,000 p'ayable on dernancl" hi t-'ntered into a notarized deed of etbsolute
sale witn ci in *niih N sold M's land t* 0 for and on belralf of M for PhP9,000,000.
bank
N gave the phpg,000,000 to M, which M received arrd deposited in his
purchase
to
account. A few days after, another buyer, P, approached M and offered
the land for phplo,ooo,ooo payable in'cash upon execution of the contract of sale.
with P on those terms and
rrl igr""O ind entered into q notarized contract of sale
title
simrjltaneously delivered the keys to the gate of tlre land and tlr.e_gertificate of
over the lancl to p. M approached 0 and tried to return the PhP9,000'000 but O

Z.

refused.

o files an action for specific performance against t'l and N.

a.
b.

Is the deed of absolute seie enf'orceable against M? 1.0. points.

matter of a
O claims that N need not be the owner of the subject point:s'
5
case?
prosper
in
this
contract of sale. will o's position

(with
On June L, 20L3, X sent Y a written offer to sell the Toyota sequicla X in
to
plate number XXX 111) that X owns for PhP5,000,000' On June 2, Y replied
price,
Y will
purchase
pay
the
writing acceptinj tne-oner and adJed that in'order to
rletter
of
for a
obtain a letter of credit from gank Z. On lune 3, 2013, Y applied
2AL3, X went to Y's
credit from Bank Z, which was refuserl by Bank Z. On June 4,
Y pay him the
house and delivered the Toyota Sequioa and demanded that
points'
10
PhP5,000,000. Y refused to pay. Is Y',s refusal correct?

3.

with
On FebruarY 1, 2013, A Corporation entered into a lease contract
owns'
Corporation
A
cbrnprnv roi a riv{-year lease of Marimar Building, which

4,

Section 10 of the lease contract provides:

If

to sell fhe leaser/ premises, the LESSEE shall be given

3)-days exclusive optian to purchase the sari?e for Phfi10,000,A00. In c:ase the
leased premises is sold to a third party,.fhe {.f55OR sha// be obliged to stip,,ulate in
the Deed of Sale thereof that the purchaser sh,tll recogni;:e this lease and be bound
the TESSOR shauld desire

by all the terms and conditions thereof.

July 27, 2013, A Corporation approachec! X and told him that A Corporation
would give X the exclusive option to purchase the Marimar Building for

On

PhP10,0C0,000 within a period of 30 days fronr July 27, i'-A73 if X would give him a
diamond ring. X agreed and promised ti: give ir diamond ring to A Corporation.

On July 28,2013, X appn:ar:lierl A Corgroraticn

under the July 27, zALi terms.

to purchase the Marimar

Building

a. B Company objects to the sale to X trer:ause there was no considertltion for

X's option. Is B Company correct? 5 pat'nts.
b. A Corporation refuses because the option is not enforceable. 5 point:;.
points.
c. Who has a lretter right? B Company or )l? 5