Ang Yu Asuncion, Arthur Go and Keh Tiong vs. CA and Buen Realty Development Corp.

G.R. No. 109125, December 2, 1994

P!"!T"# Vitug, J.
$ACT%#
On July 29, 1987, !econ" #men"e" $om%lint &or !%eci&ic 'er&ormnce () &ile" by #ng *u #)uncion n"
+e, -iong, et l., gin)t .obby $u /n0ieng n" Jo)e -n be&ore t,e Regionl -ril $ourt o& 1nil.
-,e %linti&&) (ere tennt) or le))ee) o& re)i"entil n" commercil )%ce) o(ne" by "e&en"nt) in .inon"o,
1nil. On )e2erl con"ition) "e&en"nt) in&orme" t,e %linti&&) t,t t,ey re o&&ering to )ell t,e %remi)e) n"
re gi2ing t,em %riority to c3uire t,e )me. During negotition), .obby $u /n0ieng o&&ere" %rice o& '4 million
(,ile %linti&&) m"e counter o& o&&er o& '5 million. 'linti&& t,ere&ter )5e" t,e "e&en"nt) to %ut t,eir o&&er in
(riting to (,ic, t,e "e&en"nt) cce"e". 6n re%ly to "e&en"nt)7 letter, %linti&&) (rote, )5ing t,t t,ey )%eci&y
t,e term) n" con"ition) o& t,e o&&er to )ell. 8,en t,e %linti&&) "i" not recei2e ny re%ly, t,ey )ent not,er letter
(it, t,e )me re3ue)t. !ince "e&en"nt) &ile" to )%eci&y t,e term) n" con"ition) o& t,e o&&er to )ell, n"
becu)e o& in&ormtion recei2e" t,t t,e "e&en"nt) (ere bout to )ell t,e %ro%erty, %linti&&) (ere com%elle" to
&ile t,e com%lint to com%el "e&en"nt) to )ell t,e %ro%erty to t,em.
-,e court "i)mi))e" t,e com%lint on t,e groun" t,t t,e %rtie) "i" not gree u%on t,e term) n" con"ition) o&
t,e %ro%o)e" )le, ,ence, t,ere () no contrct o& )le t ll.
On No2ember 15, 1990, t,e $u /n0ieng )%ou)e) e9ecute" Dee" o& !le trn)&erring t,e %ro%erty in 3ue)tion
to .uen Relty n" De2elo%ment $or%ortion. .uen Relty, ) t,e ne( o(ner o& t,e )ub0ect %ro%erty, (rote to
t,e le))ee) "emn"ing t,e ltter to 2cte t,e %remi)e). 6n it) re%ly, it )tte" t,t .uen Relty n" De2elo%ment
$or%ortion broug,t t,e %ro%erty )ub0ect to t,e notice o& li) %en"en).
&%%'"#
$n .uen Relty be boun" by t,e (rit o& e9ecution by 2irtue o& t,e notice o& li) %en"en):
(")D#
No. #n obligtion i) 0uri"icl nece))ity to gi2e, to "o or not to "o ;#rt. 1154, $i2il $o"e<. -,e obligtion i) u%on
t,e concurrence o& t,e e))entil element) t,ereo&, nmely=
;< t,e 2inculum 0uri) or 0uri"icl tie (,ic, i) t,e e&&icient cu)e e)tbli),e" by t,e 2riou) )ource) o&
obligtion)>
;b< t,e ob0ect (,ic, i) t,e %re)ttion or con"uct, re3uire" to be ob)er2e"> n"
;c< t,e )ub0ect?%er)on) (,o, 2ie(e" &rom "emn"bility o& t,e obligtion re t,e cti2e ;obligee< n" t,e
%))i2e ;obligor< )ub0ect).
#mong t,e )ource) o& n obligtion i) contrct ;#rt. 1157<, (,ic, i) meeting o& min") bet(een t(o %er)on)
(,ereby one bin") ,im)el&, (it, re)%ect to t,e ot,er, to gi2e )omet,ing or to ren"er )ome )er2ice. # contrct
un"ergoe) 2riou) )tge) t,t inclu"e it) negotition or %re%rtion, it) %er&ection n", &inlly, it)
con)ummtion.
/ntil t,e contrct i) %er&ecte", it cnnot, ) n in"e%en"ent )ource o& obligtion, )er2e ) bin"ing 0uri"icl
reltion. 6n )le), %rticulrly, to (,ic, t,e c)e t benc, belong), t,e contrct i) %er&ecte" (,en %er)on,
clle" t,e )eller, obligte) ,im)el&, &or %rice certin, to "eli2er n" to trn)&er o(ner),i% o& t,ing or rig,t to
not,er, clle" t,e buyer, o2er (,ic, t,e ltter gree).
-,e regi)trtion o& li) %en"en) mu)t be in"e%en"ently ""re))e" in %%ro%rite %rocee"ing). -,ere&ore, .uen
Relty cnnot be ,el" )ub0ect to t,e (rit o& e9ecution i))ue" by t,e re)%on"ent Ju"ge, let lone ou)te" &rom t,e
o(ner),i% n" %o))e))ion o& t,e %ro%erty, (it,out &ir)t being "uly &&or"e" it) "y in court.