Sanchez and Rigos executed an instrument entitled “Option to Purchase”. Rigos rejected several tenders of payments made within the stipulated period. Sanchez filed an action for specific performance with damages contending that Rigos agreed and committed to sell the land and the plaintiff agreed and committed to buy it in the option. Rigos rebutted that the contract between them was only a unilateral promise to sell and unsupported by valuable consideration distinct from the price, and null and void.
WON there is a perfected contract of sale between parties?
YES. Under the Civil Code, there is no valid contract without a cause or consideration, the promisor is not bound by his promise and may withdraw it. However, pending the notice of its withdrawal, his accepted promise is in the nature of an offer to sell which if accepted results in a perfected contract of sale. In this case, the contract between parties became a perfected contract of sale upon acceptance of Rigos of the offer within the stipulated period even though he was only initially granted an option to buy.
Digest Credit: Kelly Espera