This case has been cited 3 times or more.
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2015-09-28 |
VILLARAMA, JR., J. |
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| A right to top is a variation of the right of first refusal often incorporated in lease contracts. When a lease contract contains a right of first refusal, the lessor is under a legal duty to the lessee not to sell to anybody at any price until after he has made an offer to sell to the latter at a certain price and the lessee has failed to accept it. The lessee has a right that the lessor's first offer shall be in his favor.[29] While sometimes referred to as a "first option to buy" or "option of first refusal," a right of first refusal is not an option contract. We explained the distinction between a right of first refusal and option to purchase in Spouses Vasquez v. Ayala Corporation,[30] to wit: The Court has clearly distinguished between an option contract and a right of first refusal. An option is a preparatory contract in which one party grants to another, for a fixed period and at a determined price, the privilege to buy or sell, or to decide whether or not to enter into a principal contract. It binds the party who has given the option not to enter into the principal contract with any other person during the period designated, and within that period, to enter into such contract with the one to whom the option was granted, if the latter should decide to use the option. It is a separate and distinct contract from that which the parties may enter into upon the consummation of the option. It must be supported by consideration. | |||||
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2011-08-24 |
PEREZ, J. |
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| In Polytechnic University of the Philippines v. Court of Appeals[75] and Polytechnic University of the Philippines v. Golden Horizon Realty Corporation[76], this Court upheld the right of refusal of therein respondent private corporations concerning lots they are leasing from the government. | |||||
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2005-04-12 |
AUSTRIA-MARTINEZ, J. |
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| When a lease contract contains a right of first refusal, the lessor is under a legal duty to the lessee not to sell to anybody at any price until after he has made an offer to sell to the latter at a certain price and the lessee has failed to accept it. The lessee has a right that the lessor's first offer shall be in his favor.[18] Petitioner's right of first refusal is an integral and indivisible part of the contract of lease and is inseparable from the whole contract. The consideration for the lease includes the consideration for the right of first refusal[19] and is built into the reciprocal obligations of the parties. | |||||