ANG YU ASUNCION vs CA, G.R No.

109125, 1994-12-02

Facts:
On July 29, 1987, a Second Amended Complaint for Specific Performance was filed
by Ann Yu Asuncion and Keh Tiong against Bobby Cu Unjieng, Rose Cu Unjieng
and Jose Tan before the Regional Trial Court, Branch 31, Manila in Civil Case No.
87-41058.
Charging among others, that offended parties are inhabitants or tenants of private and
commercial spaces claimed by litigants portrayed as Nos. 630-638 Ongpin Street,
Binondo, Manila that they have involved said spaces since 1935 and have been
religiously paying the rental and complying with.
All the conditions of the lease contract that on a few events some time recently
October 9, 1986, litigants educated plaintiffs that they are offering to sell the premises
and are giving them priority to obtain the same that amid the transactions.
Bobby Cu Unjieng advertised a cost of P6-million whereas offended parties made a
counter offer of P5-million those plaintiffs from that point inquired the litigants to put
their offer in writing to which request litigants acquiesced that in reply to defendants'
letter.
Plaintiffs wrote them on October 24, 1986 inquiring that they indicate the terms and
conditions of the offer to offer that when offended parties did not receive any reply,
they sent another letter dated January 28, 1987 with the same ask.
That since defendants failed to specify the terms and conditions of the offer to sell and
because of the information received that defendants were about to sell the property,
plaintiffs were compelled to file the complaint to compel defendants to sell the
property to them.

Issues:
Buen Realty can be held bound by the summons of execution by ethicalness of the
notice of Lis write lairs, carried over on TCT No. 195816 issued within the title of
Buen Realty, at the time of the latter's purchase of the property on 15 November 1991
from the Cu Unjiengs.
Held:
We affirm the decision of the appellate court.
An obligation is a juridical necessity to give, to do or not to do (Art. 1156, Civil
Code). The obligation is constituted upon the concurrence of the essential elements
thereof.
(a) The juridical tie which is the efficient cause established by the various sources of
obligations (law, contracts, quasi-contracts, delicts and quasi-delicts);
(b) The object which is the prestation or conduct, required to be observed (to give, to
do or not to do); and
(c) The subject-persons... who, viewed from the demand ability of the obligation, are
the active (obligee) and the passive (obligor) subjects.
Among the sources of an obligation is a contract (Art. 1157, Gracious Code), which is
a assembly of minds between two people whereby one binds himself, with respect to
the other, to provide something or to render a few benefit (Art. 1305, Civil Code). A
contract undergoes various stages that incorporate its transaction or preparation, its
perfection and, finally, its consummation.
Negotiation covers the period from the time the prospective contracting parties
indicate interest in the contract to the... time the contract is concluded (perfected). The
perfection of the contract takes place upon the concurrence of the essential elements
thereof.
A contract which is consensual as to perfection is so established upon a insignificant
meeting of minds. The concurrence of offer and acceptance, on the object and on the
cause thereof. A contract which requires, in addition to the over, the conveyance of
the object of the agreement, as in a pledge is commonly alluded to as a real contract.
In a grave contract, compliance with certain formalities prescribed by law, such as in a
donation of real property, is basic in order to form the act substantial, the prescribed
form being subsequently an fundamental component.
The arrange of culmination starts when the parties perform their particular
undertakings under the contract coming full circle within the extinguish thereof.
Until the contract is culminated, it cannot, as an autonomous source of obligation,
serve as a binding juridical connection. In sales, particularly, to which the subject for
discourse about the case at seat has a place, the contract is perfected when a
individual, called the dealer, obligates himself, for a price certain, to deliver and to
exchange possession of a thing or right to another, called the buyer, over which the
latter concurs. Article 1458 of the Gracious Code provides:
"Art. 1458. By the contract of sale one of the contracting parties obligates himself to
transfer the ownership of and to deliver a determinate thing, and the other to pay
therefor a price certain in money or its equivalent.
"A contract of sale may be absolute or conditional."

Ang Yu Asuncion v. Court of Appeals238 SCRA 602, December 2, 1994FACTS:

Petiotioners are tenants or lessees of residential and commercial spaces owned by

BobbyCo Unjieng. On several occasions, Unjieng informed petitioner that they are
offering tosell the premises and are giving them priority to acquire the same. During
thenegotiations, Bobby Cu Unjieng offered a price of P6-million while petitioner
made acounter offer of P5-million. Petitioners thereafter asked Unjieng to put their
offer in
writing to which request Unjieng acceded; that in reply to Unjieng’s letter, petitioner
wrote them asking that they specify the terms and conditions of the offer to sell;
thatwhen petitioner did not receive any reply, they sent another letter with the same
request;that since Unjieng failed to specify the terms and conditions of the offer to sell
andbecause of information received that Unjieng were about to sell the property,
Petitionerwere compelled to file the complaint to compel Unjieng to sell the property
to them.

The court found that offer to sell was never accepted by the petitioner for the reason
thatthe parties did not agree upon the terms and conditions of the proposed sale,
hence, therewas no contract of sale at all. Nonetheless, the court ruled that should the
property issubsequently offered for sale, petitioners will have the right of first refusal.

The Cu Unjieng spouses executed a Deed of Sale transferring the property in question
toherein private respondent, Buen Realty. As the new owner, they wrote a letter to
thelessees demanding that the latter vacate the premises. Lessees wrote a reply stating
thatprivate respondent brought the property subject to the notice of lis pendens.

ISSUE:WON Buen Realty can be held bound by the writ of execution by virtue of the
notice of lispendens.

HELD:
No.

In the law on sales, the so-called "right of first refusal" is an innovative juridical
relation.It cannot be deemed a perfected contract of sale. Neither can it be brought
within thepurview of an option or possibly of an offer. In a right of first refusal, while
the objectmight be made determinate, the exercise of the right, however, would be
dependent notonly on the grantor's eventual intention to enter into a binding juridical
relation withanother but also on terms, including the price, that obviously are yet to be
later firmedup.

In sales, particularly, to which the topic for discussion about the case at bench
belongs,the contract is perfected when a person, called the seller, obligates himself,
for a pricecertain, to deliver and to transfer ownership of a thing or right to another,
called thebuyer, over which the latter agrees

 
If petitioners are aggrieved by the failure to honor the right of first refusal, the remedy
isnot a writ of execution on the judgment, since there is none to execute, but an action
fordamages in a proper forum for the purpose