2/12/2019 Philippine Civil Law: Serra vs.

Court of Appeals, and RCBC

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Serra vs. Court of Appeals, and RCBC HIPOKRITONG ALIEN

panganay sa 12 magkakapatid, lumaki

Serra vs. Court of Appeals, and RCBC syang tamad at walang modo. Abnormal
229 SCRA 60 ang metabolismo niya dahil hindi siya tumataba
January 1994 kahit ilang tonelada pa ang lamunin. Galit sya sa
facebook pero may account sya dun.
FACTS: VIEW MY COMPLETE PROF ILE

Petitioner Federico Serra, who is the owner of a 374 square meter parcel of land
located at Masbate, Masbate, and private respondent Rizal Commercial Banking MY CURRENT PLAYLIST
Corporation (RCBC) entered into a "Contract of Lease with Option to Buy" in May 25,
1975 which provided that Serra will lease the subject land to RCBC for a period of 25
years from June 1, 1975 to June 1, 2000, that the RCBC has the option to purchase
the same at P210.00 per square meter within a period of 10 years from May 25, CASE DIGESTS FOR THIS TOPIC
1975, the date of the signing of the Contract, and that Serra will have to register
▼  2009 (27)
said land under the Torrens System to the Register of Deeds of Province of Masbate
▼  January (27)
within the same 10‐year option period. Pursuant to said contract, RCBC constructed
▼  Jan 09 (27)
improvements on the subject land to house its branch office, while the petitioner
had the property, within 3 years from 1975, duly registered with OCT No. 0‐232 Dignos vs. Court of Appeals, and Jabil
under the Torrens System. Later, petitioner alleged that as soon as he had the Artates vs. Urbi
property registered, he kept on pursuing the branch manager for the sale of the lot Heirs of Enrique Zambales vs. Court of
as per their agreement, but it was not until September 4, 1984, that RCBC decided Appeals, an...
to exercise the option.
Quiroga vs. Parsons Hardware

RCBC informed petitioner, through a letter, of its intention to buy the property at Concrete Aggregates vs. CTA and CIR
the agreed price of not greater than P210.00 per square meter or a total of People’s Homesite vs. Court of Appeals,
P78,430.00, but petitioner replied that he is no longer selling the property. RCBC and Mendoz...
then filed an action for specific performance and damages against Serra in March Toyota Shaw Inc. vs. Court of Appeals, and
1985 alleging that during the negotiations it made clear to petitioner that it intends Sosa
to stay permanently on property once its branch office is opened unless the
Southwestern Sugar & Molasses Co. vs.
exigencies of the business requires otherwise.
Atlantic Gul...

Although finding that the contract was valid, the lower court ruled that the option to Atkins Kroll & Co. vs. Cu Hian Tek
buy is unenforceable because it lacked a consideration distinct from the price and Sanchez vs. Rigos
RCBC did not exercise its option within the reasonable time. Upon motion for Serra vs. Court of Appeals, and RCBC
reconsideration, however, the lower court reversed itself on the 2nd issue, declared
Roman vs. Grimalt
the contract as valid, and ordered Serra to deliver the proper deed of sale to RCBC.
The Court of Appeals likewise affirmed said decision. Norkis Distributors Inc. vs. Court of
Appeals, and...
ISSUE: Southern Motors Inc vs. Moscoso
Pascual vs. Universal Motors Corp.
Was there a valid contract of lease with option to buy between the parties? Was
Addison vs. Felix
there a consideration distinct from the price to support the option given to RCBC?
Sampaguita Pictures, Inc. vs. Jalwindor
COURT RULING: Manufactur...

Fiestan vs. Court of Appeals, and

The Supreme Court affirmed the appellate court’s decision. A contract of adhesion is Developmentt Ban...
one wherein a party, usually a corporation, prepares the stipulations in the contract,
Dizon vs. Suntay
while the other party merely affixes his signature or his "adhesion" thereto. These
Carbonell vs. Court of Appeals, and Poncio
types of contracts are as binding as ordinary contracts because in reality, the party
Dagupan Trading vs. Macam
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2/12/2019 Philippine Civil Law: Serra vs. Court of Appeals, and RCBC
who adheres to the contract is free to reject it entirely. Cruz vs. Cabaña / Cruz vs. Cabana
Nuguid vs. Court of Appeals, and Guevarra
In the case at bar, the Supreme Court did not find the situation to be inequitable
because petitioner is a highly educated man, who, at the time of the trial was Radiowealth Finance Co. vs. Palileo
already a CPA‐Lawyer, and when he entered into the contract, was already a CPA, Villostas vs. Court of Appeals, and Tensuan
holding a respectable position with the Metropolitan Manila Commission. It is evident
Flores vs. So
that a man of his stature should have been more cautious in transactions he enters
Etcuban vs. Court of Appeals, and Songalia
into, particularly where it concerns valuable properties. Also, in the present case,
the consideration is even more onerous on the part of the lessee since it entails
transferring of the building and/or improvements on the property to petitioner,
should respondent bank fail to exercise its option within the period stipulated.
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