[G.R. No. 97332. October 10, 1991.

]
SPOUSES JULIO D. VILLAOR AND ARINA VILLAOR, Petitioners, !. "#E #ON.
$OUR" O% APPEALS AND SPOUSES A$ARIA LA&INGISA RE'ES AND
RO&ER"O RE'ES, Respondents.
"r()*+,-,)o %. er,., /or Petitioners.
A0r,1,)o G. or0( /or Private Respondents.
S'LLA&US
1. CIVIL LAW; OBLIGATIONS AND CONTRACTS; CONSIDERATION; DEFINED. As
expressed in Gonz!es ". Trinidd# $% &'i!. $()# *onsider+ion is ,+'e -'. o/ +'e *on+r*+s# +'e
essen+i! reson -'i*' 0o"es +'e *on+r*+in1 pr+ies +o en+er in+o +'e *on+r*+.,*r!- "ir+21-
!i3rr.
). ID.; ID.; ID.; CASE AT BAR. T'e *2se or +'e i0pe!!in1 reson on +'e pr+ o/ pri"+e
responden+ in exe*2+in1 +'e deed o/ op+ion s pperin1 in +'e deed i+se!/ is +'e pe+i+ioners4
'"in1 1reed +o 32. +'e 566 s72re 0e+er por+ion o/ pri"+e responden+s4 !nd + &%6.66 per
s72re 0e+er ,-'i*' -s 1re+!. 'i1'er +'n +'e *+2! reson3!e pre"i!in1 pri*e., T'e
responden+ ppe!!+e *o2r+ /i!ed +o 1i"e d2e *onsider+ion +o pe+i+ioners4 e"iden*e -'i*' s'o-s
+'+ in 18$8 +'e Vi!!0or spo2ses 3o21'+ n d9*en+ !o+ /ro0 +'e 3ro+'er o/ :*ri L3in1;is
/or on!. &1(.66 per s72re 0e+er -'i*' +'e pri"+e responden+s did no+ re32+. T'2s# expressed in
+er0s o/ 0one.# +'e *onsider+ion /or +'e deed o/ op+ion is +'e di//eren*e 3e+-een +'e p2r*'se
pri*e o/ +'e 566 s72re 0e+er por+ion o/ +'e !o+ in 18%1 <&%6.66 per s7. 0.= nd +'e pre"i!in1
reson3!e pri*e o/ +'e s0e !o+ in 18%1. W'+e"er i+ is# <&)>.66 or &1(.66= +'o21' no+
spe*i/i*!!. s++ed in +'e deed o/ op+ion# -s s*er+in3!e. &e+i+ioners4 !!e1ed!. p.in1 &>).66
per s72re 0e+er /or +'e op+ion 0.# s opined 3. +'e ppe!!+e *o2r+# 'e i0pro33!e 32+
i0pro33i!i+ies does no+ in"!id+e *on+r*+ /ree!. en+ered in+o 3. +'e pr+ies.
5. ID.; ID.; O&TIONAL CONTRACT; CONSTR?ED. An op+ion! *on+r*+ is pri"i!e1e
exis+in1 in one person# /or -'i*' 'e 'd pid *onsider+ion nd -'i*' 1i"es 'i0 +'e ri1'+ +o
32.# /or ex0p!e# *er+in 0er*'ndise or *er+in spe*i/ied proper+.# /ro0 no+'er person# i/ 'e
*'ooses# + n. +i0e -i+'in +'e 1reed period + /ixed pri*e <Enri72ez de ! C"d ". Diz# 5%
&'i!. 8()=.
@. ID.; ID.; ACCE&TANCE OF OFFER TO SELL; EFFECTS. T'e **ep+n*e o/ n o//er +o
se!! /or pri*e *er+in *re+ed 3i!+er! *on+r*+ +o se!! nd 32. nd 2pon **ep+n*e# +'e
o//ered# ipso /*+o ss20es o3!i1+ions o/ "endee <See A+Ains# Bro!! C Co. ". C2 :in TeA#
16) &'i!. 8@(=. De0nd3i!i+. 0. 3e exer*ised + n. +i0e /+er +'e exe*2+ion o/ +'e deed. In
Sn*'ez ". Ri1os# No. L;)>@8@# D2ne 1@# 18%)# @> SCRA 5$(# 5%$=
>. ID.; ID.; SALE; WEEN &ERFECTED. A *on+r*+ o/ s!e is# 2nder Ar+i*!e 1@%> o/ +'e Ci"i!
Code# ,per/e*+ed + +'e 0o0en+ +'ere is 0ee+in1 o/ 0inds 2pon +'e +'in1 -'i*' is +'e o39e*+ o/
+'e *on+r*+ nd 2pon +'e pri*e. Fro0 +'+ 0o0en+# +'e pr+ies 0. re*ipro*!!. de0nd
per/or0n*e# s239e*+ +o +'e pro"isions o/ +'e !- 1o"ernin1 +'e /or0 o/ *on+r*+s.,*r!-
"ir+21- !i3rr.
$. ID.; ID.; DEED OF O&TION; FAIL?RE OF EITEER &ARTF TO DE:AND
&ERFOR:ANCE OF OBLIGATION FOR ?NREASONABLE LENGTE OF TI:E#
RENDERS CONTRACT INEFFECT?AL. T'e Deed o/ Op+ion did no+ pro"ide /or +'e period
-i+'in -'i*' +'e pr+ies 0. de0nd +'e per/or0n*e o/ +'eir respe*+i"e 2nder+Ain1s in +'e
ins+r20en+. T'e pr+ies *o2!d no+ '"e *on+e0p!+ed +'+ +'e de!i"er. o/ +'e proper+. nd +'e
p.0en+ +'ereo/ *o2!d 3e 0de inde/ini+e!. nd render 2n*er+in +'e s++2s o/ +'e !nd. T'e
/i!2re o/ ei+'er pr+ies +o de0nd per/or0n*e o/ +'e o3!i1+ion o/ +'e o+'er /or n 2nreson3!e
!en1+' o/ +i0e renders +'e *on+r*+ ine//e*+i"e.
%. ID.; &RESCRI&TION OF ACTIONS; ACTION BASED ON A WRITTEN CONTRACT
&RESCRIBES WITEIN TEN <16= FEARS; CASE AT BAR. ?nder Ar+i*!e 11@@ <1= o/ +'e
Ci"i! Code# *+ions 2pon -ri++en *on+r*+ 02s+ 3e 3ro21'+ -i+'in +en <16= .ers. T'e Deed o/
Op+ion -s exe*2+ed on No"e03er 11# 18%1. T'e **ep+n*e# s !red. 0en+ioned# -s !so
**ep+ed in +'e s0e ins+r20en+. T'e *o0p!in+ in +'is *se -s /i!ed 3. +'e pe+i+ioners on D2!.
15# 18(%# se"en+een <1%= .ers /ro0 +'e +i0e o/ +'e exe*2+ion o/ +'e *on+r*+. Een*e# +'e ri1'+ o/
*+ion 'd pres*ri3ed. T'ere -ere !!e1+ions 3. +'e pe+i+ioners +'+ +'e. de0nded /ro0 +'e
pri"+e responden+s s er!. s 18(@ +'e en/or*e0en+ o/ +'eir ri1'+s 2nder +'e *on+r*+. S+i!!# i+
-s 3e.ond +'e +en <16= .er period pres*ri3ed 3. +'e Ci"i! Code.
(. ID.; EG?ITF; DOCTRINE A&&LIED IN CASE AT BAR. I+ is o/ 92di*i! no+i*e +'+ +'e
pri*e o/ re! es++e in :e+ro :ni! is *on+in2o2s!. on +'e rise. To !!o- +'e pe+i+ioner +o de0nd
+'e de!i"er. o/ +'e proper+. s239e*+ o/ +'is *se +'ir+een <15= .ers or se"en+een <1%= .ers /+er
+'e exe*2+ion o/ +'e deed + +'e pri*e o/ on!. &%6.66 per s72re 0e+er is ine72i+o2s. For resons
!so o/ e72i+. nd in *onsider+ion o/ +'e /*+ +'+ +'e pri"+e responden+s '"e no o+'er de*en+
p!*e +o !i"e# +'is Co2r+# in +'e exer*ise o/ i+s e72i+. 92risdi*+ion is no+ in*!ined +o 1rn+
pe+i+ioners4 pr.er.
D E $ I S I O N
EDIALDEA, J.2
T'is is pe+i+ion /or re"ie- on certiorari o/ +'e de*ision o/ +'e Co2r+ o/ Appe!s in CA;G.R. CV.
No. )@1%$ en+i+!ed# ,Spo2ses D2!io Vi!!0or nd :rin Vi!!0or# &!in+i//s;Appe!!ees# "ers2s
Spo2ses :*ri L3in1is Re.es nd Ro3er+o Re.es# De/endn+s;Appe!!n+s#, -'i*'
re"ersed +'e de*ision o/ +'e Re1ion! Tri! Co2r+ <Brn*' 1)1= + C!oo*n Ci+. in Ci"i! Cse
No. C;1)8@).
T'e /*+s o/ +'e *se re s /o!!o-sH*'nro31es "ir+2! 1- !i3rr.
:*ri L3in1is Re.es -s +'e o-ner o/ $66;s72re 0e+er !o+ !o*+ed + Bes# C!oo*n
Ci+.# s e"iden*ed 3. Trns/er Cer+i/i*+e o/ Ti+!e No. <1(@51= 1(85(# o/ +'e Re1is+er o/ Deeds o/
Riz!.
In D2!. 18%1# :*ri so!d por+ion o/ 566 s72re 0e+ers o/ +'e !o+ +o +'e Spo2ses D2!io nd
:rin Vi!!0or /or +'e +o+! 0o2n+ o/ &)1#666.66. Er!ier# :*ri 3orro-ed &)#666.66 /ro0
+'e spo2ses -'i*' 0o2n+ -s ded2*+ed /ro0 +'e +o+! p2r*'se pri*e o/ +'e 566 s72re 0e+er !o+
so!d. T'e por+ion so!d +o +'e Vi!!0or spo2ses is no- *o"ered 3. TCT No. 5885> -'i!e +'e
re0inin1 por+ion -'i*' is s+i!! in +'e n0e o/ :*ri L3in1is; is *o"ered 3. TCT No. 5885@
<prs. > nd %# Co0p!in+=. On No"e03er 11# 18%1# :*ri exe*2+ed ,Deed o/ op+ion, in
/"or o/ Vi!!0or in -'i*' +'e re0inin1 566 s72re 0e+er por+ion <TCT No. 5885@= o/ +'e !o+
-o2!d 3e so!d +o Vi!!0or 2nder +'e *ondi+ions s++ed +'erein. T'e do*20en+
redsH91*H*'nro3!es.*o0.p'
,DEED OF O&TION
,T'is Deed o/ Op+ion# en+ered in+o in +'e Ci+. o/ :ni!# &'i!ippines# +'is 11+' d. o/ No"e03er#
18%1# 3. nd 3e+-een :*ri L3in1is;# o/ 1e# 0rried +o Ro3er+o Re.es# !iAe-ise o/ 1e#
nd 3o+' residin1 on Repro S+.# Bes# C!oo*n Ci+.# on +'e one 'nd# nd on +'e o+'er 'nd
+'e spo2ses D2!io Vi!!0or nd :rin V. Vi!!0or# !so o/ 1e nd residin1 + No. >>) Repro
S+.# *orner Bes Rod# Bes# C!oo*n Ci+..*'nro3!es.*o0 H "ir+2! !- !i3rr.
,WITNESSES
,T'+# I :*ri L3in1is# 0 +'e o-ner in /ee si0p!e o/ pr*e! o/ !nd -i+' n re o/ $66
s72re 0e+ers# 0ore or !ess# 0ore pr+i*2!r!. des*ri3ed in TCT No. <1(@51= 1(85( o/ +'e O//i*e
o/ +'e Re1is+er o/ Deeds /or +'e pro"in*e o/ Riz!# iss2ed in 0. n0e# I '"in1 in'eri+ed +'e
s0e /ro0 0. de*esed pren+s# /or -'i*' reson i+ is 0. prp'ern! proper+.;
,T'+ I# -i+' +'e *on/or0i+. o/ 0. '2s3nd# Ro3er+o Re.es# '"e so!d one;'!/ +'ereo/ +o +'e
/oresid spo2ses D2!io Vi!!0or nd :rin V. Vi!!0or + +'e pri*e o/ &%6.66 per s7. 0e+er#
-'i*' -s 1re+!. 'i1'er +'n +'e *+2! reson3!e pre"i!in1 "!2e o/ !nds in +'+ p!*e + +'e
+i0e# -'i*' por+ion# /+er se1re1+ion# is no- *o"ered 3. TCT No. 5885> o/ +'e Re1is+er o/
Deeds /or +'e Ci+. o/ C!oo*n# iss2ed on A212s+ 1%# 18%1 in +'e n0e o/ +'e /ore0en+ioned
spo2ses "endees;
,T'+ +'e on!. reson -'. +'e Spo2ses;"endees D2!io Vi!!0or nd :rin V. Vi!!0or# 1reed +o
32. +'e sid one;'!/ por+ion + +'e 3o"e;s++ed pri*e o/ 3o2+ &%6.66 per s72re 0e+er# is
3e*2se I# nd 0. '2s3nd Ro3er+o Re.es# '"e 1reed +o se!! nd *on"e. +o +'e0 +'e re0inin1
one;'!/ por+ion s+i!! o-ned 3. 0e nd no- *o"ered 3. TCT No. 5885> o/ +'e Re1is+er o/ Deeds
/or +'e Ci+. o/ C!oo*n# -'ene"er +'e need o/ s2*' s!e rises# ei+'er on o2r pr+ or on +'e pr+
o/ +'e spo2ses <D2!io= Vi!!0or nd :rin V. Vi!!0or# + +'e s0e pri*e o/ &%6.66 per s72re
0e+er# ex*!2din1 -'+e"er i0pro"e0en+ 0. 3e /o2nd +'ereon;
,T'+ I 0 -i!!in1 +o '"e +'is *on+r*+ +o se!! ins*ri3ed on 0. /oresid +i+!e s n en*203rn*e
2pon +'e proper+. *o"ered +'ere3.# 2pon p.0en+ o/ +'e *orrespondin1 /ees; nd
,T'+ -e# D2!io Vi!!0or nd :rin V. Vi!!0or# 'ere3. 1ree +o# nd **ep+# +'e 3o"e
pro"isions o/ +'is Deed o/ Op+ion.
,IN WITNESS WEEREOF# +'is Deed o/ Op+ion is si1ned in +'e Ci+. o/ :ni!# &'i!ippines# 3.
!! +'e persons *on*erned# +'is 11+' d. o/ No"e03er# 18%1.
,D?LIO VILLA:OR ,:ACARIA LABINGISA
Wi+' :.
Con/or0i+.H91*H*'nro3!es.*o0.p'
,:ARINA VILLA:OR ,ROBERTO REFES
,Si1ned in +'e &resen*e O/H91*H*'nro3!es.*o0.p'
,:ARIANO I. S?NIGA
,ROSALINDA S. E?GENIO
,ACBNOWLEDG:ENT
,RE&?BLIC OF TEE &EILI&&INES=
CITF OF :ANILA= S.S.
,A+ +'e Ci+. o/ :ni!# on +'e 11+' d. o/ No"e03er# 18%1# person!!. ppered 3e/ore 0e
Ro3er+o Re.es# :*ri L3in1is# D2!io Vi!!0or nd :rin Ven+2r;Vi!!0or# Ano-n +o 0e s
+'e s0e persons -'o exe*2+ed +'e /ore1oin1 Deed o/ Op+ion# -'i*' *onsis+s o/ +-o <)= p1es
in*!2din1 +'e p1e -'ereon +'is *Ano-!ed10en+ is -ri++en# nd si1ned + +'e !e/+ 0r1in o/ +'e
/irs+ p1e nd + +'e 3o++o0 o/ +'e ins+r20en+ 3. +'e pr+ies nd +'eir -i+nesses# nd se!ed -i+'
0. no+ri! se!# nd sid pr+ies *Ano-!ed1ed +o 0e +'+ +'e s0e is +'eir /ree *+ nd deed.
T'e Residen*e Cer+i/i*+es o/ +'e pr+ies -ere ex'i3i+ed +o 0e s /o!!o-sH Ro3er+o Re.es# A;
))@8@# iss2ed + :ni! on Dn. )%# 18%1# nd B;>6)6)># iss2ed + :A+i# Riz! on Fe3. 1(#
18%1; :*ri L3in1is# A;5558156 nd B;1)$$16@# 3o+' iss2ed + C!oo*n *i+. on Apri! 1>#
18%1# +'eir 9oin+ Tx A**+. N203er 3ein1 56)(;%$%;$; D2!io Vi!!0or# A;(6@# iss2ed + :ni! on
Dn. 1@# 18%1# nd B;15(# iss2ed + :ni! on :r*' 1# 18%1; nd :rin Ven+2r;Vi!!0or# A;
(65# iss2ed + :ni! on Dn. 1@# 18%1# +'eir 9oin+ Tx A**+. N203er 3ein1 $6(;)6);$.*'nro3!es
!- !i3rr.
,ARTE:IO :. :AL?BAF
No+r. &23!i*
?n+i! De*e03er 51# 18%)
&TR No. 55()65# :ni!
Dn2r. 1># 18%1
,Do*. No. 1>)$;
&1e No. )@;
BooA No. 5(;
Series o/ 18%1., <pp. )>;)8# Ro!!o=
A**ordin1 +o :*ri# -'en 'er '2s3nd# Ro3er+o Re.es# re+ired in 18(@# +'e. o//ered +o
rep2r*'se +'e !o+ so!d 3. +'e0 +o +'e Vi!!0or spo2ses 32+ :rin Vi!!0or re/2sed nd
re0inded +'e0 ins+ed +'+ +'e Deed o/ Op+ion in /*+ 1"e +'e0 +'e op+ion +o p2r*'se +'e
re0inin1 por+ion o/ +'e !o+.
T'e Vi!!0ors# on +'e o+'er 'nd# *!i0ed +'+ +'e. 'd expressed +'eir desire +o p2r*'se +'e
re0inin1 566 s72re 0e+er por+ion o/ +'e !o+ 32+ +'e Re.es 'd 3een i1norin1 +'e0. T'2s# on
D2!. 15# 18(%# /+er *on*i!i+ion pro*eedin1s in +'e 3rn1. !e"e! /i!ed# +'e. /i!ed *o0p!in+
/or spe*i/i* per/or0n*e 1ins+ +'e Re.es.
On D2!. )$# 18(8# 92d10en+ -s rendered 3. +'e +ri! *o2r+ in /"or o/ +'e Vi!!0or spo2ses# +'e
disposi+i"e por+ion o/ -'i*' s++esH91*H*'nro3!es.*o0.p'
,WEEREFORE# nd <si*= in "ie- o/ +'e /ore1oin1# 92d10en+ is 'ere3. rendered in /"or o/ +'e
p!in+i//s nd 1ins+ +'e de/endn+s orderin1 +'e de/endn+ :ACARIA LABINGISA REFES
nd ROBERTO REFES# +o se!! 2n+o +'e p!in+i//s +'e !nd *o"ered 3. T.C.T. No. 5885@ o/ +'e
Re1is+er o/ Deeds o/ C!oo*n Ci+.# +o p. +'e p!in+i//s +'e s20 o/ &5#666.66 s nd /or
++orne.4s /ees nd +o p. +'e *os+ o/ s2i+.
,T'e *o2n+er*!i0 is 'ere3. DIS:ISSED# /or LACB OF :ERIT.
,SO ORDERED., <pp. )@;)># Ro!!o=
No+ s+is/ied -i+' +'e de*ision o/ +'e +ri! *o2r+# +'e Re.es spo2ses ppe!ed +o +'e Co2r+ o/
Appe!s on +'e /o!!o-in1 ssi1n0en+ o/ errorsH91*H*'nro3!es.*o0.p'
,1. EOLDING TEAT TEE DEED OF O&TION EJEC?TED ON NOVE:BER 11# 18%1
BETWEEN TEE &LAINTIFF;A&&ELLEES AND DEFENDANT;A&&ELLANTS IS STILL
VALID AND BINDING DES&ITE TEE LA&SE OF :ORE TEAN TEIRTEEN <15= FEARS
FRO: TEE EJEC?TION OF TEE CONTRACT;
,). FAILING TO CONSIDER TEAT TEE DEED OF O&TION CONTAINS OBSC?RE
WORDS AND STI&?LATIONS WEICE SEO?LD BE RESOLVED AGAINST TEE
&LAINTIFF;A&&ELLEES WEO ?NILATERALLF DRAFTED AND &RE&ARED TEE
SA:E;
,5. EOLDING TEAT TEE DEED OF O&TION EJ&RESSED TEE TR?E INTENTION AND
&?R&OSE OF TEE &ARTIES DES&ITE ADVERSE# CONTE:&ORANEO?S AND
S?BSEG?ENT ACTS OF TEE &LAINTIFF;A&&ELLEES;
,@. FAILING TO &ROTECT TEE DEFENDANT;A&&ELLANTS ON ACCO?NT OF TEEIR
IGNORANCE &LACING TEE: AT A DISADVANTAGE IN TEE DEED OF O&TION;
,>. FAILING TO CONSIDER TEAT EG?ITABLE CONSIDERATION TILT IN FAVOR OF
TEE DEFENDANT;A&&ELLANTS; nd
,$. EOLDING DEFENDANT;A&&ELLANTS LIABLE TO &AF &LAINTIFF;A&&ELLEES
TEE A:O?NT OF &5#666.66 FOR AND BF WAF OF ATTORNEF4S FEES., <pp. 51;5)#
Ro!!o=
On Fe3r2r. 1)# 1881# +'e Co2r+ o/ Appe!s rendered de*ision re"ersin1 +'e de*ision o/ +'e
+ri! *o2r+ nd dis0issin1 +'e *o0p!in+. T'e re"ers! o/ +'e +ri! *o2r+4s de*ision -s pre0ised
on +'e /indin1 o/ responden+ *o2r+ +'+ +'e Deed o/ Op+ion is "oid /or !*A o/ *onsider+ion.
T'e Vi!!0or spo2ses 3ro21'+ +'e ins+n+ pe+i+ion /or re"ie- on certiorari or +'e /o!!o-in1
1ro2ndsH91*H*'nro3!es.*o0.p'
,I. TEE CO?RT OF A&&EALS GRAVELF ERRED IN FINDING TEAT TEE &ERASE
KWEENEVER TEE NEED FOR S?CE SALE ARISES ON O?R <&RIVATE RES&ONDENT=
&ART OR ON TEE &ART OF TEE S&O?SES D?LIO D. VILLA:OR AND :ARINA V.
VILLA:OR4 CONTAINED IN TEE DEED OF O&TION DENOTES A S?S&ENSIVE
CONDITION;
,II. ASS?:ING FOR TEE SABE OF ARG?:ENT TEAT TEE G?ESTIONED &ERASE IS
INDEED A CONDITION# TEE CO?RT OF A&&EALS ERRED IN NOT FINDING# TEAT
TEE SAID CONDITION EAD ALREADF BEEN F?LFILLED;
,III. ASS?:ING FOR TEE SABE OF ARG?:ENT TEAT TEE G?ESTIONED &ERASE IS
INDEED A CONDITION# TEE CO?RT OF A&&EALS ERRED IN EOLDING TEAT TEE
I:&OSITION OF SAID CONDITION &REVENTED TEE &ERFECTION OF TEE
CONTRACT OF SALE DES&ITE TEE EJ&RESS OFFER AND ACCE&TANCE CONTAINED
IN TEE DEED OF O&TION;
,IV. TEE CO?RT OF A&&EALS ERRED IN FINDING TEAT TEE DEED OF O&TION IS
VOID FOR LACB OF CONSIDERATION;
,V. TEE CO?RT OF A&&EALS ERRED IN EOLDING TEAT A DISTINCT
CONSIDERATION IS NECESSARF TO S?&&ORT TEE DEED OF O&TION DES&ITE TEE
EJ&RESS OFFER AND ACCE&TANCE CONTAINED TEEREIN., <p. 1)# Ro!!o=
T'e pi"o+! iss2e +o 3e reso!"ed in +'is *se is +'e "!idi+. o/ +'e Deed o/ Op+ion -'ere3. +'e
pri"+e responden+s 1reed +o se!! +'eir !o+ +o pe+i+ioners ,-'ene"er +'e need o/ s2*' s!e rises#
ei+'er on o2r pr+ <pri"+e responden+s= or on +'e pr+ o/ D2!io Vi!!0or nd :rin Vi!!0or
<pe+i+ioners=., T'e *o2r+ 72o# r2!e +'+ +'e Deed o/ Op+ion -s "!id -ri++en 1ree0en+
3e+-een +'e pr+ies nd 0de +'e /o!!o-in1 *on*!2sionsH*'nro3!es !- !i3rr.
,x x x
,I+ is in+eres+in1 +o s++e +'+ +'e 1ree0en+ 3e+-een +'e pr+ies re e"iden*ed 3. -ri+in1#
'en*e# +'e *on+ro"er+in1 or! +es+i0onies o/ +'e 'erein de/endn+s *nno+ 3e n. 3e++er +'n +'e
do*20en+r. e"iden*e# -'i*'# in +'is *se# is +'e Deed o/ Op+ion. <Ex'.4A4 nd KA;4=
,T'e !- pro"ides +'+ -'en +'e +er0s o/ n 1ree0en+ '"e 3een red2*ed +o -ri+in1 i+ is +o 3e
*onsidered s *on+inin1 !! s2*' +er0s# nd +'ere/ore# +'ere *n 3e# 3e+-een +'e pr+ies nd +'eir
s2**essors in in+eres+ no e"iden*e o/ +'e +er0s o/ +'e 1ree0en+# o+'er +'n +'e *on+en+s o/ +'e
-ri+in1 . . . . <Se*+ion % R2!e 156 Re"ised R2!es o/ Co2r+= LiAe-ise# i+ is 1ener! nd 0os+
in/!exi3!e r2!e +'+ -'ere"er -ri++en ins+r20en+s re ppoin+ed ei+'er 3. +'e re72ire0en+s o/ !-#
or 3. +'e *on+r*+ o/ +'e pr+ies# +o 3e +'e reposi+ories nd 0e0ori!s o/ +r2+'# n. o+'er e"iden*e
is ex*!2ded /ro0 3ein1 2sed# ei+'er s s23s+i+2+e /or s2*' ins+r20en+s# or +o *on+rdi*+ or !+er
+'e0. T'is is 0++er 3o+' o/ prin*ip!e nd o/ po!i*.; o/ prin*ip!e 3e*2se s2*' ins+r20en+s re
in +'eir n+2re nd ori1in en+i+!ed +o 02*' 'i1'er de1ree o/ *redi+ +'n pro! e"iden*e# o/
po!i*.# 3e*2se i+ -o2!d 3e ++ended -i+' 1re+ 0is*'ie/ i/ +'ose ins+r20en+s 2pon -'i*' 0n4s
ri1'+s depended -ere !i3!e +o 3e i0pe*'ed 3. !oose *o!!+er! e"iden*e. W'ere +'e +er0s o/ n
1ree0en+ re red2*ed +o -ri+in1# +'e do*20en+ i+se!/# 3ein1 *ons+i+2+ed 3. +'e pr+ies s +'e
exposi+or o/ +'eir in+en+ions# i+ is +'e on!. ins+r20en+ o/ e"iden*e in respe*+ o/ +'+ 1ree0en+
-'i*' +'e !- -i!! re*o1nize so !on1 s i+ exis+s /or +'e p2rpose o/ e"iden*e. <S+rAie# EV. pp.
$@(# $>> *i+ed in Bs'een+' ". C'2nd.# W.R. $(# *i+ed in Frn*is*o4s R2!es o/ Co2r+# Vo!. VII
&r+ I p. 1>5= <I+!i* s2pp!ied# pp. 1)$;1)%# Re*ords=.
T'e responden+ ppe!!+e *o2r+# 'o-e"er# r2!ed +'+ +'e sid deed o/ op+ion is "oid /or !*A o/
*onsider+ion. T'e ppe!!+e *o2r+ 0de +'e /o!!o-in1 dis72isi+ionsH91*H*'nro3!es.*o0.p'
,&!in+i//;ppe!!ees s. +'e. 1reed +o p. &%6.66 per s72re 0e+er /or +'e por+ion p2r*'sed 3.
+'e0 !+'o21' +'e pre"i!in1 pri*e + +'+ +i0e -s on!. &)>.66 in *onsider+ion o/ +'e op+ion +o
32. +'e re0inder o/ +'e !nd. T'is does no+ see0 +o 3e +'e *se. In +'e /irs+ p!*e# +'e deed o/
s!e -s ne"er prod2*ed 3. +'e0 +o pro"e +'eir *!i0. De/endn+;ppe!!n+s +es+i/ied +'+ no
*op. o/ +'e deed o/ s!e 'd e"er 3een 1i"en +o +'e0 3. +'e p!in+i//;ppe!!ees. In +'e se*ond
p!*e# i/ +'is -s re!!. +'e *ondi+ion o/ +'e prior s!e# -e see no reson -'. i+ s'o2!d 3e
rei+er+ed in +'e Deed o/ Op+ion. On +'e *on+rr.# +'e !!e1ed o"erpri*e pid 3. +'e p!in+i//;
ppe!!ees is 1i"en in +'e Deed s reson /or +'e desire o/ +'e Vi!!0ors +o *72ire +'e !nd r+'er
+'n s *onsider+ion /or +'e op+ion 1i"en +o +'e0# !+'o21' one 0i1'+ -onder -'. +'e. +ooA
ner!. 15 .ers +o in"oAe +'eir ri1'+ i/ +'e. re!!. -ere in d2e need o/ +'e !o+.
,A+ !! e"en+s# +'e *onsider+ion needed +o s2ppor+ 2ni!+er! pro0ise +o se!! is dis+in*+ one#
no+ so0e+'in1 +'+ is s 2n*er+in s &%6#66 per s72re 0e+er -'i*' is !!e1ed!. K1re+!. 'i1'er
+'n +'e *+2! pre"i!in1 "!2e o/ !nds.4 A s!e 02s+ 3e /or pri*e *er+in <Ar+. 1@>(=. For 'o-
02*' +'e por+ion *on"e.ed +o +'e p!in+i//;ppe!!ees -s so!d so +'+ +'e 3!n*e *o2!d 3e
*onsidered +'e *onsider+ion /or +'e pro0ise +o se!! 's no+ 3een s'o-n# 3e.ond 0ere
!!e1+ion +'+ i+ -s "er. 02*' 3e!o- &%6.66 per s72re 0e+er.
,T'e /*+ +'+ p!in+i//;ppe!!ees 0i1'+ '"e pid &1(.66 per s72re 0e+er /or no+'er !nd + +'e
+i0e o/ +'e s!e +o +'e0 o/ por+ion o/ de/endn+;ppe!!n+4s !o+ does no+ ne*essri!. pro"e +'+
+'e pre"i!in1 0rAe+ pri*e + +'e +i0e o/ +'e s!e -s &1(.66 per s72re 0e+er. <In /*+ +'e.
*!i0 i+ -s &)>.66=. I+ is i0pro33!e +'+ p!in+i//;ppe!!ees s'o2!d p. &>).66 per s72re 0e+er
/or +'e pri"i!e1e o/ 32.in1 -'en +'e "!2e o/ +'e !nd i+se!/ -s !!e1ed!. &1(.66 per s72re
0e+er., <pp. 5@;5># Ro!!o=
As expressed in Gonz!es ". Trinidd# $% &'i!. $()# *onsider+ion is ,+'e -'. o/ +'e *on+r*+s#
+'e essen+i! reson -'i*' 0o"es +'e *on+r*+in1 pr+ies +o en+er in+o +'e *on+r*+., T'e *2se or
+'e i0pe!!in1 reson on +'e pr+ o/ pri"+e responden+ in exe*2+in1 +'e deed o/ op+ion s
pperin1 in +'e deed i+se!/ is +'e pe+i+ioners4 '"in1 1reed +o 32. +'e 566 s72re 0e+er por+ion
o/ pri"+e responden+s4 !nd + &%6.66 per s72re 0e+er ,-'i*' -s 1re+!. 'i1'er +'n +'e *+2!
reson3!e pre"i!in1 pri*e., T'is *2se or *onsider+ion is *!er /ro0 +'e deed -'i*'
s++edH*'nro3!es.*o0 H "ir+2! !- !i3rr.
,T'+ +'e on!. reson -'. +'e spo2ses;"endees D2!io Vi!!0or nd :rin V Vi!!0or 1reed +o
32. +'e sid one;'!/ por+ion + +'e 3o"e s++ed pri*e o/ 3o2+ &%6.66 per s72re 0e+er# is
3e*2se I# nd 0. '2s3nd Ro3er+o Re.es# '"e 1reed +o se!! nd *on"e. +o +'e0 +'e re0inin1
one;'!/ por+ion s+i!! o-ned 3. 0e . . ., <p. )$# Ro!!o=
T'e responden+ ppe!!+e *o2r+ /i!ed +o 1i"e d2e *onsider+ion +o pe+i+ioners4 e"iden*e -'i*'
s'o-s +'+ in 18$8 +'e Vi!!0or spo2ses 3o21'+ n d9*en+ !o+ /ro0 +'e 3ro+'er o/ :*ri
L3in1;is /or on!. &1(.66 per s72re 0e+er -'i*' +'e pri"+e responden+s did no+ re32+. T'2s#
expressed in +er0s o/ 0one.# +'e *onsider+ion /or +'e deed o/ op+ion is +'e di//eren*e 3e+-een
+'e p2r*'se pri*e o/ +'e 566 s72re 0e+er por+ion o/ +'e !o+ in 18%1 <&%6.66 per s7. 0.= nd +'e
pre"i!in1 reson3!e pri*e o/ +'e s0e !o+ in 18%1. W'+e"er i+ is# <&)>.66 or &1(.66= +'o21'
no+ spe*i/i*!!. s++ed in +'e deed o/ op+ion# -s s*er+in3!e. &e+i+ioners4 !!e1ed!. p.in1
&>).66 per s72re 0e+er /or +'e op+ion 0.# s opined 3. +'e ppe!!+e *o2r+# 'e i0pro33!e 32+
i0pro33i!i+ies does no+ in"!id+e *on+r*+ /ree!. en+ered in+o 3. +'e pr+ies.
T'e ,deed o/ op+ion, en+ered in+o 3. +'e pr+ies in +'is *se 'd 2ni72e /e+2res. Ordinri!.# n
op+ion! *on+r*+ is pri"i!e1e exis+in1 in one person# /or -'i*' 'e 'd pid *onsider+ion nd
-'i*' 1i"es 'i0 +'e ri1'+ +o 32.# /or ex0p!e# *er+in 0er*'ndise or *er+in spe*i/ied proper+.#
/ro0 no+'er person# i/ 'e *'ooses# + n. +i0e -i+'in +'e 1reed period + /ixed pri*e
<Enri72ez de ! C"d ". Diz# 5% &'i!. 8()=. I/ We !ooA *!ose!. + +'e ,deed o/ op+ion, si1ned
3. +'e pr+ies# We -i!! no+i*e +'+ +'e /irs+ pr+ *o"ered +'e s++e0en+ on +'e s!e o/ +'e 566
s72re 0e+er por+ion o/ +'e !o+ +o Spo2ses Vi!!0or + +'e pri*e o/ &%6.66 per s72re 0e+er
K-'i*' -s 'i1'er +'n +'e *+2! reson3!e pre"i!in1 "!2e o/ +'e !nds in +'+ p!*e + +'+
+i0e <o/ s!e=., T'e se*ond pr+ s++ed +'+ +'e on!. reson -'. +'e Vi!!0or spo2ses 1reed +o
32. +'e sid !o+ + 02*' 'i1'er pri*e is 3e*2se +'e "endor <Re.es= !so 1reed +o se!! +o +'e
Vi!!0ors +'e o+'er '!/;por+ion o/ 566 s72re 0e+ers o/ +'e !nd. Ed +'e deed s+opped +'ere#
+'ere -o2!d 3e no disp2+e +'+ +'e deed is re!!. n ordinr. deed o/ op+ion 1rn+in1 +'e
Vi!!0ors +'e op+ion +o 32. +'e re0inin1 566 s72re 0e+er;'!/ por+ion o/ +'e !o+ in
*onsider+ion /or +'eir '"in1 1reed +o 32. +'e o+'er '!/ o/ +'e !nd /or 02*' 'i1'er pri*e.
B2+# +'e ,deed o/ op+ion, -en+ on nd s++ed +'+ +'e s!e o/ +'e o+'er '!/ -o2!d 3e 0de
,-'ene"er +'e need o/ s2*' s!e rises# ei+'er on o2r <Re.es= pr+ or on +'e pr+ o/ +'e Spo2ses
D2!io Vi!!0or nd :rin V. Vi!!0or. I+ ppers +'+ -'i!e +'e op+ion +o 32. -s 1rn+ed +o +'e
Vi!!0ors# +'e Re.es -ere !iAe-ise 1rn+ed n op+ion +o se!!. In o+'er -ords# i+ -s no+ on!. +'e
Vi!!0ors -'o -ere 1rn+ed n op+ion +o 32. /or -'i*' +'e. pid *onsider+ion. T'e Re.es s
-e!! -ere 1rn+ed n op+ion +o se!! s'o2!d +'e need /or s2*' s!e on +'eir pr+ rise.
In +'e ins+n+ *se# +'e op+ion o//ered 3. pri"+e responden+s 'd 3een **ep+ed 3. +'e pe+i+ioner#
+'e pro0ises# in +'e s0e do*20en+. T'e **ep+n*e o/ n o//er +o se!! /or pri*e *er+in *re+ed
3i!+er! *on+r*+ +o se!! nd 32. nd 2pon **ep+n*e# +'e o//ered# ipso /*+o ss20es
o3!i1+ions o/ "endee <See A+Ains# Bro!! C Co. ". C2 :in TeA# 16) &'i!. 8@(=.
De0nd3i!i+. 0. 3e exer*ised + n. +i0e /+er +'e exe*2+ion o/ +'e deed. In Sn*'ez ". Ri1os#
No. L;)>@8@# D2ne 1@# 18%)# @> SCRA 5$(# 5%$# We 'e!dH91*H*'nro3!es.*o0.p'
,In o+'er -ords# sin*e +'ere 0. 3e no "!id *on+r*+ -i+'o2+ *2se o/ *onsider+ion# +'e
pro0isor is no+ 3o2nd 3. 'is pro0ise nd 0.# **ordin1!. -i+'dr- i+. &endin1 no+i*e o/ i+s
-i+'dr-!# 'is **ep+ed pro0ise pr+Aes# 'o-e"er# o/ +'e n+2re o/ n o//er +o se!! -'i*'# i/
**ep+ed# res2!+s in per/e*+ed *on+r*+ o/ s!e.,*r!- "ir+21- !i3rr.
A *on+r*+ o/ s!e is# 2nder Ar+i*!e 1@%> o/ +'e Ci"i! Code# ,per/e*+ed + +'e 0o0en+ +'ere is
0ee+in1 o/ 0inds 2pon +'e +'in1 -'i*' is +'e o39e*+ o/ +'e *on+r*+ nd 2pon +'e pri*e. Fro0 +'+
0o0en+# +'e pr+ies 0. re*ipro*!!. de0nd per/or0n*e# s239e*+ +o +'e pro"isions o/ +'e !-
1o"ernin1 +'e /or0 o/ *on+r*+s., Sin*e +'ere -s# 3e+-een +'e pr+ies# 0ee+in1 o/ 0inds 2pon
+'e o39e*+ nd +'e pri*e# +'ere -s !red. per/e*+ed *on+r*+ o/ s!e. W'+ -s# 'o-e"er# !e/+
+o 3e done -s /or ei+'er pr+. +o de0nd /ro0 +'e o+'er +'eir respe*+i"e 2nder+Ain1s 2nder +'e
*on+r*+. I+ 0. 3e de0nded + n. +i0e ei+'er 3. +'e pri"+e responden+s# -'o 0. *o0pe! +'e
pe+i+ioners +o p. /or +'e proper+. or +'e pe+i+ioners# -'o 0. *o0pe! +'e pri"+e responden+s +o
de!i"er +'e proper+..
Eo-e"er# +'e Deed o/ Op+ion did no+ pro"ide /or +'e period -i+'in -'i*' +'e pr+ies 0.
de0nd +'e per/or0n*e o/ +'eir respe*+i"e 2nder+Ain1s in +'e ins+r20en+. T'e pr+ies *o2!d no+
'"e *on+e0p!+ed +'+ +'e de!i"er. o/ +'e proper+. nd +'e p.0en+ +'ereo/ *o2!d 3e 0de
inde/ini+e!. nd render 2n*er+in +'e s++2s o/ +'e !nd. T'e /i!2re o/ ei+'er pr+ies +o de0nd
per/or0n*e o/ +'e o3!i1+ion o/ +'e o+'er /or n 2nreson3!e !en1+' o/ +i0e renders +'e *on+r*+
ine//e*+i"e.*'nro3!es.*o0H*r!-Hred
?nder Ar+i*!e 11@@ <1= o/ +'e Ci"i! Code# *+ions 2pon -ri++en *on+r*+ 02s+ 3e 3ro21'+ -i+'in
+en <16= .ers. T'e Deed o/ Op+ion -s exe*2+ed on No"e03er 11# 18%1. T'e **ep+n*e# s
!red. 0en+ioned# -s !so **ep+ed in +'e s0e ins+r20en+. T'e *o0p!in+ in +'is *se -s
/i!ed 3. +'e pe+i+ioners on D2!. 15# 18(%# se"en+een <1%= .ers /ro0 +'e +i0e o/ +'e exe*2+ion o/
+'e *on+r*+. Een*e# +'e ri1'+ o/ *+ion 'd pres*ri3ed. T'ere -ere !!e1+ions 3. +'e pe+i+ioners
+'+ +'e. de0nded /ro0 +'e pri"+e responden+s s er!. s 18(@ +'e en/or*e0en+ o/ +'eir ri1'+s
2nder +'e *on+r*+. S+i!!# i+ -s 3e.ond +'e +en <16= .er period pres*ri3ed 3. +'e Ci"i! Code. In
+'e *se o/ Sn+os ". Gn.o# L;51(>@# Sep+e03er 8# 18()# 11$ SCRA @51# +'is Co2r+ //ir0in1
nd s23s*ri3in1 +o +'e o3ser"+ions o/ +'e *o2r+ 72o 'e!d# +'2sH91*H*'nro3!es.*o0.p'
,. . . Ass20in1 +'+ Ros Gn.o# +'e opposi+or 'erein# 'd +'e ri1'+ 3sed on +'e A1ree0en+ +o
Con"e. nd Trns/er s *on+ined in Ex'i3i+s K14 nd K1;A4# 'er /i!2re or +'e 3ndon0en+ o/
'er ri1'+ +o /i!e n *+ion 1ins+ &2!0no :o!in+s -'en 'e -s s+i!! *o;o-ner o/ +'e one;'!/
<1L)= por+ion o/ +'e 16#666 s72re 0e+ers is no- 3rred 3. !*'es nd or pres*ri3ed 3. !-
3e*2se s'e /i!ed +o 3rin1 s2*' *+ion -i+'in +en <16= .ers /ro0 +'e d+e o/ +'e -ri++en
1ree0en+ in 18@1# p2rs2n+ +o Ar+. 11@@ o/ +'e Ne- Ci"i! Code# so +'+ -'en s'e /i!ed +'e
d"erse *!i0 +'ro21' 'er *o2nse! in 18>8 s'e 'd 3so!2+e!. no 0ore ri1'+ -'+soe"er on +'e
s0e# '"in1 3een 3rred 3. !*'es.
I+ is o/ 92di*i! no+i*e +'+ +'e pri*e o/ re! es++e in :e+ro :ni! is *on+in2o2s!. on +'e rise. To
!!o- +'e pe+i+ioner +o de0nd +'e de!i"er. o/ +'e proper+. s239e*+ o/ +'is *se +'ir+een <15= .ers
or se"en+een <1%= .ers /+er +'e exe*2+ion o/ +'e deed + +'e pri*e o/ on!. &%6.66 per s72re
0e+er is ine72i+o2s. For resons !so o/ e72i+. nd in *onsider+ion o/ +'e /*+ +'+ +'e pri"+e
responden+s '"e no o+'er de*en+ p!*e +o !i"e# +'is Co2r+# in +'e exer*ise o/ i+s e72i+.
92risdi*+ion is no+ in*!ined +o 1rn+ pe+i+ioners4 pr.er.
ACCORDINGLF# +'e pe+i+ion is DENIED. T'e de*ision o/ responden+ ppe!!+e *o2r+ is
AFFIR:ED /or resons *i+ed in +'is de*ision. D2d10en+ is rendered dis0issin1 +'e *o0p!in+ in
Ci"i! Cse No. C;1)8@) on +'e 1ro2nd o/ pres*rip+ion nd !*'es.*'nro3!es "ir+2! !-!i3rr.
SO ORDERED.
[G.R. No. 97332. October 10, 1991.]
SPOUSES JULIO D. VILLAOR AND ARINA VILLAOR, Petitioners, !. "#E #ON. $OUR"
O% APPEALS AND SPOUSES A$ARIA LA&INGISA RE'ES AND RO&ER"O
RE'ES, Respondents.
"r()*+,-,)o %. er,., /or Petitioners.
A0r,1,)o G. or0( /or Private Respondents.
S'LLA&US
1. CIVIL LAW; OBLIGATIONS AND CONTRACTS; CONSIDERATION; DEFINED. As expressed
in Gonz!es ". Trinidd# $% &'i!. $()# *onsider+ion is ,+'e -'. o/ +'e *on+r*+s# +'e essen+i! reson
-'i*' 0o"es +'e *on+r*+in1 pr+ies +o en+er in+o +'e *on+r*+.,*r!- "ir+21- !i3rr.
). ID.; ID.; ID.; CASE AT BAR. T'e *2se or +'e i0pe!!in1 reson on +'e pr+ o/ pri"+e responden+ in
exe*2+in1 +'e deed o/ op+ion s pperin1 in +'e deed i+se!/ is +'e pe+i+ioners4 '"in1 1reed +o 32. +'e
566 s72re 0e+er por+ion o/ pri"+e responden+s4 !nd + &%6.66 per s72re 0e+er ,-'i*' -s 1re+!.
'i1'er +'n +'e *+2! reson3!e pre"i!in1 pri*e., T'e responden+ ppe!!+e *o2r+ /i!ed +o 1i"e d2e
*onsider+ion +o pe+i+ioners4 e"iden*e -'i*' s'o-s +'+ in 18$8 +'e Vi!!0or spo2ses 3o21'+ n d9*en+
!o+ /ro0 +'e 3ro+'er o/ :*ri L3in1;is /or on!. &1(.66 per s72re 0e+er -'i*' +'e pri"+e
responden+s did no+ re32+. T'2s# expressed in +er0s o/ 0one.# +'e *onsider+ion /or +'e deed o/ op+ion is
+'e di//eren*e 3e+-een +'e p2r*'se pri*e o/ +'e 566 s72re 0e+er por+ion o/ +'e !o+ in 18%1 <&%6.66 per
s7. 0.= nd +'e pre"i!in1 reson3!e pri*e o/ +'e s0e !o+ in 18%1. W'+e"er i+ is# <&)>.66 or &1(.66=
+'o21' no+ spe*i/i*!!. s++ed in +'e deed o/ op+ion# -s s*er+in3!e. &e+i+ioners4 !!e1ed!. p.in1
&>).66 per s72re 0e+er /or +'e op+ion 0.# s opined 3. +'e ppe!!+e *o2r+# 'e i0pro33!e 32+
i0pro33i!i+ies does no+ in"!id+e *on+r*+ /ree!. en+ered in+o 3. +'e pr+ies.
5. ID.; ID.; O&TIONAL CONTRACT; CONSTR?ED. An op+ion! *on+r*+ is pri"i!e1e exis+in1 in
one person# /or -'i*' 'e 'd pid *onsider+ion nd -'i*' 1i"es 'i0 +'e ri1'+ +o 32.# /or ex0p!e#
*er+in 0er*'ndise or *er+in spe*i/ied proper+.# /ro0 no+'er person# i/ 'e *'ooses# + n. +i0e -i+'in
+'e 1reed period + /ixed pri*e <Enri72ez de ! C"d ". Diz# 5% &'i!. 8()=.
@. ID.; ID.; ACCE&TANCE OF OFFER TO SELL; EFFECTS. T'e **ep+n*e o/ n o//er +o se!! /or
pri*e *er+in *re+ed 3i!+er! *on+r*+ +o se!! nd 32. nd 2pon **ep+n*e# +'e o//ered# ipso /*+o
ss20es o3!i1+ions o/ "endee <See A+Ains# Bro!! C Co. ". C2 :in TeA# 16) &'i!. 8@(=.
De0nd3i!i+. 0. 3e exer*ised + n. +i0e /+er +'e exe*2+ion o/ +'e deed. In Sn*'ez ". Ri1os# No. L;
)>@8@# D2ne 1@# 18%)# @> SCRA 5$(# 5%$=
>. ID.; ID.; SALE; WEEN &ERFECTED. A *on+r*+ o/ s!e is# 2nder Ar+i*!e 1@%> o/ +'e Ci"i! Code#
,per/e*+ed + +'e 0o0en+ +'ere is 0ee+in1 o/ 0inds 2pon +'e +'in1 -'i*' is +'e o39e*+ o/ +'e *on+r*+
nd 2pon +'e pri*e. Fro0 +'+ 0o0en+# +'e pr+ies 0. re*ipro*!!. de0nd per/or0n*e# s239e*+ +o +'e
pro"isions o/ +'e !- 1o"ernin1 +'e /or0 o/ *on+r*+s.,*r!- "ir+21- !i3rr.
$. ID.; ID.; DEED OF O&TION; FAIL?RE OF EITEER &ARTF TO DE:AND &ERFOR:ANCE OF
OBLIGATION FOR ?NREASONABLE LENGTE OF TI:E# RENDERS CONTRACT
INEFFECT?AL. T'e Deed o/ Op+ion did no+ pro"ide /or +'e period -i+'in -'i*' +'e pr+ies 0.
de0nd +'e per/or0n*e o/ +'eir respe*+i"e 2nder+Ain1s in +'e ins+r20en+. T'e pr+ies *o2!d no+ '"e
*on+e0p!+ed +'+ +'e de!i"er. o/ +'e proper+. nd +'e p.0en+ +'ereo/ *o2!d 3e 0de inde/ini+e!. nd
render 2n*er+in +'e s++2s o/ +'e !nd. T'e /i!2re o/ ei+'er pr+ies +o de0nd per/or0n*e o/ +'e
o3!i1+ion o/ +'e o+'er /or n 2nreson3!e !en1+' o/ +i0e renders +'e *on+r*+ ine//e*+i"e.
%. ID.; &RESCRI&TION OF ACTIONS; ACTION BASED ON A WRITTEN CONTRACT
&RESCRIBES WITEIN TEN <16= FEARS; CASE AT BAR. ?nder Ar+i*!e 11@@ <1= o/ +'e Ci"i! Code#
*+ions 2pon -ri++en *on+r*+ 02s+ 3e 3ro21'+ -i+'in +en <16= .ers. T'e Deed o/ Op+ion -s exe*2+ed
on No"e03er 11# 18%1. T'e **ep+n*e# s !red. 0en+ioned# -s !so **ep+ed in +'e s0e ins+r20en+.
T'e *o0p!in+ in +'is *se -s /i!ed 3. +'e pe+i+ioners on D2!. 15# 18(%# se"en+een <1%= .ers /ro0 +'e
+i0e o/ +'e exe*2+ion o/ +'e *on+r*+. Een*e# +'e ri1'+ o/ *+ion 'd pres*ri3ed. T'ere -ere !!e1+ions 3.
+'e pe+i+ioners +'+ +'e. de0nded /ro0 +'e pri"+e responden+s s er!. s 18(@ +'e en/or*e0en+ o/ +'eir
ri1'+s 2nder +'e *on+r*+. S+i!!# i+ -s 3e.ond +'e +en <16= .er period pres*ri3ed 3. +'e Ci"i! Code.
(. ID.; EG?ITF; DOCTRINE A&&LIED IN CASE AT BAR. I+ is o/ 92di*i! no+i*e +'+ +'e pri*e o/
re! es++e in :e+ro :ni! is *on+in2o2s!. on +'e rise. To !!o- +'e pe+i+ioner +o de0nd +'e de!i"er. o/
+'e proper+. s239e*+ o/ +'is *se +'ir+een <15= .ers or se"en+een <1%= .ers /+er +'e exe*2+ion o/ +'e deed
+ +'e pri*e o/ on!. &%6.66 per s72re 0e+er is ine72i+o2s. For resons !so o/ e72i+. nd in *onsider+ion
o/ +'e /*+ +'+ +'e pri"+e responden+s '"e no o+'er de*en+ p!*e +o !i"e# +'is Co2r+# in +'e exer*ise o/ i+s
e72i+. 92risdi*+ion is no+ in*!ined +o 1rn+ pe+i+ioners4 pr.er.
D E $ I S I O N
EDIALDEA, J.2
T'is is pe+i+ion /or re"ie- on certiorari o/ +'e de*ision o/ +'e Co2r+ o/ Appe!s in CA;G.R. CV. No.
)@1%$ en+i+!ed# ,Spo2ses D2!io Vi!!0or nd :rin Vi!!0or# &!in+i//s;Appe!!ees# "ers2s Spo2ses
:*ri L3in1is Re.es nd Ro3er+o Re.es# De/endn+s;Appe!!n+s#, -'i*' re"ersed +'e de*ision o/
+'e Re1ion! Tri! Co2r+ <Brn*' 1)1= + C!oo*n Ci+. in Ci"i! Cse No. C;1)8@).
T'e /*+s o/ +'e *se re s /o!!o-sH*'nro31es "ir+2! 1- !i3rr.
:*ri L3in1is Re.es -s +'e o-ner o/ $66;s72re 0e+er !o+ !o*+ed + Bes# C!oo*n Ci+.# s
e"iden*ed 3. Trns/er Cer+i/i*+e o/ Ti+!e No. <1(@51= 1(85(# o/ +'e Re1is+er o/ Deeds o/ Riz!.
In D2!. 18%1# :*ri so!d por+ion o/ 566 s72re 0e+ers o/ +'e !o+ +o +'e Spo2ses D2!io nd :rin
Vi!!0or /or +'e +o+! 0o2n+ o/ &)1#666.66. Er!ier# :*ri 3orro-ed &)#666.66 /ro0 +'e spo2ses
-'i*' 0o2n+ -s ded2*+ed /ro0 +'e +o+! p2r*'se pri*e o/ +'e 566 s72re 0e+er !o+ so!d. T'e por+ion
so!d +o +'e Vi!!0or spo2ses is no- *o"ered 3. TCT No. 5885> -'i!e +'e re0inin1 por+ion -'i*' is s+i!!
in +'e n0e o/ :*ri L3in1is; is *o"ered 3. TCT No. 5885@ <prs. > nd %# Co0p!in+=. On
No"e03er 11# 18%1# :*ri exe*2+ed ,Deed o/ op+ion, in /"or o/ Vi!!0or in -'i*' +'e re0inin1
566 s72re 0e+er por+ion <TCT No. 5885@= o/ +'e !o+ -o2!d 3e so!d +o Vi!!0or 2nder +'e *ondi+ions
s++ed +'erein. T'e do*20en+ redsH91*H*'nro3!es.*o0.p'
,DEED OF O&TION
,T'is Deed o/ Op+ion# en+ered in+o in +'e Ci+. o/ :ni!# &'i!ippines# +'is 11+' d. o/ No"e03er# 18%1#
3. nd 3e+-een :*ri L3in1is;# o/ 1e# 0rried +o Ro3er+o Re.es# !iAe-ise o/ 1e# nd 3o+' residin1
on Repro S+.# Bes# C!oo*n Ci+.# on +'e one 'nd# nd on +'e o+'er 'nd +'e spo2ses D2!io Vi!!0or
nd :rin V. Vi!!0or# !so o/ 1e nd residin1 + No. >>) Repro S+.# *orner Bes Rod# Bes#
C!oo*n Ci+..*'nro3!es.*o0 H "ir+2! !- !i3rr.
,WITNESSES
,T'+# I :*ri L3in1is# 0 +'e o-ner in /ee si0p!e o/ pr*e! o/ !nd -i+' n re o/ $66 s72re
0e+ers# 0ore or !ess# 0ore pr+i*2!r!. des*ri3ed in TCT No. <1(@51= 1(85( o/ +'e O//i*e o/ +'e Re1is+er
o/ Deeds /or +'e pro"in*e o/ Riz!# iss2ed in 0. n0e# I '"in1 in'eri+ed +'e s0e /ro0 0. de*esed
pren+s# /or -'i*' reson i+ is 0. prp'ern! proper+.;
,T'+ I# -i+' +'e *on/or0i+. o/ 0. '2s3nd# Ro3er+o Re.es# '"e so!d one;'!/ +'ereo/ +o +'e /oresid
spo2ses D2!io Vi!!0or nd :rin V. Vi!!0or + +'e pri*e o/ &%6.66 per s7. 0e+er# -'i*' -s 1re+!.
'i1'er +'n +'e *+2! reson3!e pre"i!in1 "!2e o/ !nds in +'+ p!*e + +'e +i0e# -'i*' por+ion# /+er
se1re1+ion# is no- *o"ered 3. TCT No. 5885> o/ +'e Re1is+er o/ Deeds /or +'e Ci+. o/ C!oo*n# iss2ed
on A212s+ 1%# 18%1 in +'e n0e o/ +'e /ore0en+ioned spo2ses "endees;
,T'+ +'e on!. reson -'. +'e Spo2ses;"endees D2!io Vi!!0or nd :rin V. Vi!!0or# 1reed +o 32. +'e
sid one;'!/ por+ion + +'e 3o"e;s++ed pri*e o/ 3o2+ &%6.66 per s72re 0e+er# is 3e*2se I# nd 0.
'2s3nd Ro3er+o Re.es# '"e 1reed +o se!! nd *on"e. +o +'e0 +'e re0inin1 one;'!/ por+ion s+i!!
o-ned 3. 0e nd no- *o"ered 3. TCT No. 5885> o/ +'e Re1is+er o/ Deeds /or +'e Ci+. o/ C!oo*n#
-'ene"er +'e need o/ s2*' s!e rises# ei+'er on o2r pr+ or on +'e pr+ o/ +'e spo2ses <D2!io= Vi!!0or nd
:rin V. Vi!!0or# + +'e s0e pri*e o/ &%6.66 per s72re 0e+er# ex*!2din1 -'+e"er i0pro"e0en+ 0.
3e /o2nd +'ereon;
,T'+ I 0 -i!!in1 +o '"e +'is *on+r*+ +o se!! ins*ri3ed on 0. /oresid +i+!e s n en*203rn*e 2pon +'e
proper+. *o"ered +'ere3.# 2pon p.0en+ o/ +'e *orrespondin1 /ees; nd
,T'+ -e# D2!io Vi!!0or nd :rin V. Vi!!0or# 'ere3. 1ree +o# nd **ep+# +'e 3o"e pro"isions o/ +'is
Deed o/ Op+ion.
,IN WITNESS WEEREOF# +'is Deed o/ Op+ion is si1ned in +'e Ci+. o/ :ni!# &'i!ippines# 3. !! +'e
persons *on*erned# +'is 11+' d. o/ No"e03er# 18%1.
,D?LIO VILLA:OR ,:ACARIA LABINGISA
Wi+' :.
Con/or0i+.H91*H*'nro3!es.*o0.p'
,:ARINA VILLA:OR ,ROBERTO REFES
,Si1ned in +'e &resen*e O/H91*H*'nro3!es.*o0.p'
,:ARIANO I. S?NIGA
,ROSALINDA S. E?GENIO
,ACBNOWLEDG:ENT
,RE&?BLIC OF TEE &EILI&&INES=
CITF OF :ANILA= S.S.
,A+ +'e Ci+. o/ :ni!# on +'e 11+' d. o/ No"e03er# 18%1# person!!. ppered 3e/ore 0e Ro3er+o
Re.es# :*ri L3in1is# D2!io Vi!!0or nd :rin Ven+2r;Vi!!0or# Ano-n +o 0e s +'e s0e
persons -'o exe*2+ed +'e /ore1oin1 Deed o/ Op+ion# -'i*' *onsis+s o/ +-o <)= p1es in*!2din1 +'e p1e
-'ereon +'is *Ano-!ed10en+ is -ri++en# nd si1ned + +'e !e/+ 0r1in o/ +'e /irs+ p1e nd + +'e 3o++o0
o/ +'e ins+r20en+ 3. +'e pr+ies nd +'eir -i+nesses# nd se!ed -i+' 0. no+ri! se!# nd sid pr+ies
*Ano-!ed1ed +o 0e +'+ +'e s0e is +'eir /ree *+ nd deed. T'e Residen*e Cer+i/i*+es o/ +'e pr+ies
-ere ex'i3i+ed +o 0e s /o!!o-sH Ro3er+o Re.es# A;))@8@# iss2ed + :ni! on Dn. )%# 18%1# nd B;
>6)6)># iss2ed + :A+i# Riz! on Fe3. 1(# 18%1; :*ri L3in1is# A;5558156 nd B;1)$$16@# 3o+'
iss2ed + C!oo*n *i+. on Apri! 1># 18%1# +'eir 9oin+ Tx A**+. N203er 3ein1 56)(;%$%;$; D2!io Vi!!0or#
A;(6@# iss2ed + :ni! on Dn. 1@# 18%1# nd B;15(# iss2ed + :ni! on :r*' 1# 18%1; nd :rin
Ven+2r;Vi!!0or# A;(65# iss2ed + :ni! on Dn. 1@# 18%1# +'eir 9oin+ Tx A**+. N203er 3ein1 $6(;)6);
$.*'nro3!es !- !i3rr.
,ARTE:IO :. :AL?BAF
No+r. &23!i*
?n+i! De*e03er 51# 18%)
&TR No. 55()65# :ni!
Dn2r. 1># 18%1
,Do*. No. 1>)$;
&1e No. )@;
BooA No. 5(;
Series o/ 18%1., <pp. )>;)8# Ro!!o=
A**ordin1 +o :*ri# -'en 'er '2s3nd# Ro3er+o Re.es# re+ired in 18(@# +'e. o//ered +o rep2r*'se +'e
!o+ so!d 3. +'e0 +o +'e Vi!!0or spo2ses 32+ :rin Vi!!0or re/2sed nd re0inded +'e0 ins+ed +'+ +'e
Deed o/ Op+ion in /*+ 1"e +'e0 +'e op+ion +o p2r*'se +'e re0inin1 por+ion o/ +'e !o+.
T'e Vi!!0ors# on +'e o+'er 'nd# *!i0ed +'+ +'e. 'd expressed +'eir desire +o p2r*'se +'e re0inin1
566 s72re 0e+er por+ion o/ +'e !o+ 32+ +'e Re.es 'd 3een i1norin1 +'e0. T'2s# on D2!. 15# 18(%# /+er
*on*i!i+ion pro*eedin1s in +'e 3rn1. !e"e! /i!ed# +'e. /i!ed *o0p!in+ /or spe*i/i* per/or0n*e
1ins+ +'e Re.es.
On D2!. )$# 18(8# 92d10en+ -s rendered 3. +'e +ri! *o2r+ in /"or o/ +'e Vi!!0or spo2ses# +'e
disposi+i"e por+ion o/ -'i*' s++esH91*H*'nro3!es.*o0.p'
,WEEREFORE# nd <si*= in "ie- o/ +'e /ore1oin1# 92d10en+ is 'ere3. rendered in /"or o/ +'e p!in+i//s
nd 1ins+ +'e de/endn+s orderin1 +'e de/endn+ :ACARIA LABINGISA REFES nd ROBERTO
REFES# +o se!! 2n+o +'e p!in+i//s +'e !nd *o"ered 3. T.C.T. No. 5885@ o/ +'e Re1is+er o/ Deeds o/
C!oo*n Ci+.# +o p. +'e p!in+i//s +'e s20 o/ &5#666.66 s nd /or ++orne.4s /ees nd +o p. +'e *os+ o/
s2i+.
,T'e *o2n+er*!i0 is 'ere3. DIS:ISSED# /or LACB OF :ERIT.
,SO ORDERED., <pp. )@;)># Ro!!o=
No+ s+is/ied -i+' +'e de*ision o/ +'e +ri! *o2r+# +'e Re.es spo2ses ppe!ed +o +'e Co2r+ o/ Appe!s on
+'e /o!!o-in1 ssi1n0en+ o/ errorsH91*H*'nro3!es.*o0.p'
,1. EOLDING TEAT TEE DEED OF O&TION EJEC?TED ON NOVE:BER 11# 18%1 BETWEEN
TEE &LAINTIFF;A&&ELLEES AND DEFENDANT;A&&ELLANTS IS STILL VALID AND BINDING
DES&ITE TEE LA&SE OF :ORE TEAN TEIRTEEN <15= FEARS FRO: TEE EJEC?TION OF
TEE CONTRACT;
,). FAILING TO CONSIDER TEAT TEE DEED OF O&TION CONTAINS OBSC?RE WORDS AND
STI&?LATIONS WEICE SEO?LD BE RESOLVED AGAINST TEE &LAINTIFF;A&&ELLEES WEO
?NILATERALLF DRAFTED AND &RE&ARED TEE SA:E;
,5. EOLDING TEAT TEE DEED OF O&TION EJ&RESSED TEE TR?E INTENTION AND
&?R&OSE OF TEE &ARTIES DES&ITE ADVERSE# CONTE:&ORANEO?S AND S?BSEG?ENT
ACTS OF TEE &LAINTIFF;A&&ELLEES;
,@. FAILING TO &ROTECT TEE DEFENDANT;A&&ELLANTS ON ACCO?NT OF TEEIR
IGNORANCE &LACING TEE: AT A DISADVANTAGE IN TEE DEED OF O&TION;
,>. FAILING TO CONSIDER TEAT EG?ITABLE CONSIDERATION TILT IN FAVOR OF TEE
DEFENDANT;A&&ELLANTS; nd
,$. EOLDING DEFENDANT;A&&ELLANTS LIABLE TO &AF &LAINTIFF;A&&ELLEES TEE
A:O?NT OF &5#666.66 FOR AND BF WAF OF ATTORNEF4S FEES., <pp. 51;5)# Ro!!o=
On Fe3r2r. 1)# 1881# +'e Co2r+ o/ Appe!s rendered de*ision re"ersin1 +'e de*ision o/ +'e +ri! *o2r+
nd dis0issin1 +'e *o0p!in+. T'e re"ers! o/ +'e +ri! *o2r+4s de*ision -s pre0ised on +'e /indin1 o/
responden+ *o2r+ +'+ +'e Deed o/ Op+ion is "oid /or !*A o/ *onsider+ion.
T'e Vi!!0or spo2ses 3ro21'+ +'e ins+n+ pe+i+ion /or re"ie- on certiorari or +'e /o!!o-in1
1ro2ndsH91*H*'nro3!es.*o0.p'
,I. TEE CO?RT OF A&&EALS GRAVELF ERRED IN FINDING TEAT TEE &ERASE KWEENEVER
TEE NEED FOR S?CE SALE ARISES ON O?R <&RIVATE RES&ONDENT= &ART OR ON TEE
&ART OF TEE S&O?SES D?LIO D. VILLA:OR AND :ARINA V. VILLA:OR4 CONTAINED IN
TEE DEED OF O&TION DENOTES A S?S&ENSIVE CONDITION;
,II. ASS?:ING FOR TEE SABE OF ARG?:ENT TEAT TEE G?ESTIONED &ERASE IS INDEED
A CONDITION# TEE CO?RT OF A&&EALS ERRED IN NOT FINDING# TEAT TEE SAID
CONDITION EAD ALREADF BEEN F?LFILLED;
,III. ASS?:ING FOR TEE SABE OF ARG?:ENT TEAT TEE G?ESTIONED &ERASE IS INDEED
A CONDITION# TEE CO?RT OF A&&EALS ERRED IN EOLDING TEAT TEE I:&OSITION OF
SAID CONDITION &REVENTED TEE &ERFECTION OF TEE CONTRACT OF SALE DES&ITE
TEE EJ&RESS OFFER AND ACCE&TANCE CONTAINED IN TEE DEED OF O&TION;
,IV. TEE CO?RT OF A&&EALS ERRED IN FINDING TEAT TEE DEED OF O&TION IS VOID FOR
LACB OF CONSIDERATION;
,V. TEE CO?RT OF A&&EALS ERRED IN EOLDING TEAT A DISTINCT CONSIDERATION IS
NECESSARF TO S?&&ORT TEE DEED OF O&TION DES&ITE TEE EJ&RESS OFFER AND
ACCE&TANCE CONTAINED TEEREIN., <p. 1)# Ro!!o=
T'e pi"o+! iss2e +o 3e reso!"ed in +'is *se is +'e "!idi+. o/ +'e Deed o/ Op+ion -'ere3. +'e pri"+e
responden+s 1reed +o se!! +'eir !o+ +o pe+i+ioners ,-'ene"er +'e need o/ s2*' s!e rises# ei+'er on o2r pr+
<pri"+e responden+s= or on +'e pr+ o/ D2!io Vi!!0or nd :rin Vi!!0or <pe+i+ioners=., T'e *o2r+ 72o#
r2!e +'+ +'e Deed o/ Op+ion -s "!id -ri++en 1ree0en+ 3e+-een +'e pr+ies nd 0de +'e /o!!o-in1
*on*!2sionsH*'nro3!es !- !i3rr.
,x x x
,I+ is in+eres+in1 +o s++e +'+ +'e 1ree0en+ 3e+-een +'e pr+ies re e"iden*ed 3. -ri+in1# 'en*e# +'e
*on+ro"er+in1 or! +es+i0onies o/ +'e 'erein de/endn+s *nno+ 3e n. 3e++er +'n +'e do*20en+r.
e"iden*e# -'i*'# in +'is *se# is +'e Deed o/ Op+ion. <Ex'.4A4 nd KA;4=
,T'e !- pro"ides +'+ -'en +'e +er0s o/ n 1ree0en+ '"e 3een red2*ed +o -ri+in1 i+ is +o 3e *onsidered
s *on+inin1 !! s2*' +er0s# nd +'ere/ore# +'ere *n 3e# 3e+-een +'e pr+ies nd +'eir s2**essors in
in+eres+ no e"iden*e o/ +'e +er0s o/ +'e 1ree0en+# o+'er +'n +'e *on+en+s o/ +'e -ri+in1 . . . . <Se*+ion %
R2!e 156 Re"ised R2!es o/ Co2r+= LiAe-ise# i+ is 1ener! nd 0os+ in/!exi3!e r2!e +'+ -'ere"er -ri++en
ins+r20en+s re ppoin+ed ei+'er 3. +'e re72ire0en+s o/ !-# or 3. +'e *on+r*+ o/ +'e pr+ies# +o 3e +'e
reposi+ories nd 0e0ori!s o/ +r2+'# n. o+'er e"iden*e is ex*!2ded /ro0 3ein1 2sed# ei+'er s s23s+i+2+e
/or s2*' ins+r20en+s# or +o *on+rdi*+ or !+er +'e0. T'is is 0++er 3o+' o/ prin*ip!e nd o/ po!i*.; o/
prin*ip!e 3e*2se s2*' ins+r20en+s re in +'eir n+2re nd ori1in en+i+!ed +o 02*' 'i1'er de1ree o/ *redi+
+'n pro! e"iden*e# o/ po!i*.# 3e*2se i+ -o2!d 3e ++ended -i+' 1re+ 0is*'ie/ i/ +'ose ins+r20en+s 2pon
-'i*' 0n4s ri1'+s depended -ere !i3!e +o 3e i0pe*'ed 3. !oose *o!!+er! e"iden*e. W'ere +'e +er0s
o/ n 1ree0en+ re red2*ed +o -ri+in1# +'e do*20en+ i+se!/# 3ein1 *ons+i+2+ed 3. +'e pr+ies s +'e
exposi+or o/ +'eir in+en+ions# i+ is +'e on!. ins+r20en+ o/ e"iden*e in respe*+ o/ +'+ 1ree0en+ -'i*' +'e
!- -i!! re*o1nize so !on1 s i+ exis+s /or +'e p2rpose o/ e"iden*e. <S+rAie# EV. pp. $@(# $>> *i+ed in
Bs'een+' ". C'2nd.# W.R. $(# *i+ed in Frn*is*o4s R2!es o/ Co2r+# Vo!. VII &r+ I p. 1>5= <I+!i*
s2pp!ied# pp. 1)$;1)%# Re*ords=.
T'e responden+ ppe!!+e *o2r+# 'o-e"er# r2!ed +'+ +'e sid deed o/ op+ion is "oid /or !*A o/
*onsider+ion. T'e ppe!!+e *o2r+ 0de +'e /o!!o-in1 dis72isi+ionsH91*H*'nro3!es.*o0.p'
,&!in+i//;ppe!!ees s. +'e. 1reed +o p. &%6.66 per s72re 0e+er /or +'e por+ion p2r*'sed 3. +'e0
!+'o21' +'e pre"i!in1 pri*e + +'+ +i0e -s on!. &)>.66 in *onsider+ion o/ +'e op+ion +o 32. +'e
re0inder o/ +'e !nd. T'is does no+ see0 +o 3e +'e *se. In +'e /irs+ p!*e# +'e deed o/ s!e -s ne"er
prod2*ed 3. +'e0 +o pro"e +'eir *!i0. De/endn+;ppe!!n+s +es+i/ied +'+ no *op. o/ +'e deed o/ s!e 'd
e"er 3een 1i"en +o +'e0 3. +'e p!in+i//;ppe!!ees. In +'e se*ond p!*e# i/ +'is -s re!!. +'e *ondi+ion o/
+'e prior s!e# -e see no reson -'. i+ s'o2!d 3e rei+er+ed in +'e Deed o/ Op+ion. On +'e *on+rr.# +'e
!!e1ed o"erpri*e pid 3. +'e p!in+i//;ppe!!ees is 1i"en in +'e Deed s reson /or +'e desire o/ +'e
Vi!!0ors +o *72ire +'e !nd r+'er +'n s *onsider+ion /or +'e op+ion 1i"en +o +'e0# !+'o21' one
0i1'+ -onder -'. +'e. +ooA ner!. 15 .ers +o in"oAe +'eir ri1'+ i/ +'e. re!!. -ere in d2e need o/ +'e
!o+.
,A+ !! e"en+s# +'e *onsider+ion needed +o s2ppor+ 2ni!+er! pro0ise +o se!! is dis+in*+ one# no+
so0e+'in1 +'+ is s 2n*er+in s &%6#66 per s72re 0e+er -'i*' is !!e1ed!. K1re+!. 'i1'er +'n +'e
*+2! pre"i!in1 "!2e o/ !nds.4 A s!e 02s+ 3e /or pri*e *er+in <Ar+. 1@>(=. For 'o- 02*' +'e por+ion
*on"e.ed +o +'e p!in+i//;ppe!!ees -s so!d so +'+ +'e 3!n*e *o2!d 3e *onsidered +'e *onsider+ion /or
+'e pro0ise +o se!! 's no+ 3een s'o-n# 3e.ond 0ere !!e1+ion +'+ i+ -s "er. 02*' 3e!o- &%6.66 per
s72re 0e+er.
,T'e /*+ +'+ p!in+i//;ppe!!ees 0i1'+ '"e pid &1(.66 per s72re 0e+er /or no+'er !nd + +'e +i0e o/
+'e s!e +o +'e0 o/ por+ion o/ de/endn+;ppe!!n+4s !o+ does no+ ne*essri!. pro"e +'+ +'e pre"i!in1
0rAe+ pri*e + +'e +i0e o/ +'e s!e -s &1(.66 per s72re 0e+er. <In /*+ +'e. *!i0 i+ -s &)>.66=. I+ is
i0pro33!e +'+ p!in+i//;ppe!!ees s'o2!d p. &>).66 per s72re 0e+er /or +'e pri"i!e1e o/ 32.in1 -'en
+'e "!2e o/ +'e !nd i+se!/ -s !!e1ed!. &1(.66 per s72re 0e+er., <pp. 5@;5># Ro!!o=
As expressed in Gonz!es ". Trinidd# $% &'i!. $()# *onsider+ion is ,+'e -'. o/ +'e *on+r*+s# +'e
essen+i! reson -'i*' 0o"es +'e *on+r*+in1 pr+ies +o en+er in+o +'e *on+r*+., T'e *2se or +'e
i0pe!!in1 reson on +'e pr+ o/ pri"+e responden+ in exe*2+in1 +'e deed o/ op+ion s pperin1 in +'e
deed i+se!/ is +'e pe+i+ioners4 '"in1 1reed +o 32. +'e 566 s72re 0e+er por+ion o/ pri"+e responden+s4
!nd + &%6.66 per s72re 0e+er ,-'i*' -s 1re+!. 'i1'er +'n +'e *+2! reson3!e pre"i!in1 pri*e.,
T'is *2se or *onsider+ion is *!er /ro0 +'e deed -'i*' s++edH*'nro3!es.*o0 H "ir+2! !- !i3rr.
,T'+ +'e on!. reson -'. +'e spo2ses;"endees D2!io Vi!!0or nd :rin V Vi!!0or 1reed +o 32. +'e
sid one;'!/ por+ion + +'e 3o"e s++ed pri*e o/ 3o2+ &%6.66 per s72re 0e+er# is 3e*2se I# nd 0.
'2s3nd Ro3er+o Re.es# '"e 1reed +o se!! nd *on"e. +o +'e0 +'e re0inin1 one;'!/ por+ion s+i!!
o-ned 3. 0e . . ., <p. )$# Ro!!o=
T'e responden+ ppe!!+e *o2r+ /i!ed +o 1i"e d2e *onsider+ion +o pe+i+ioners4 e"iden*e -'i*' s'o-s +'+
in 18$8 +'e Vi!!0or spo2ses 3o21'+ n d9*en+ !o+ /ro0 +'e 3ro+'er o/ :*ri L3in1;is /or on!.
&1(.66 per s72re 0e+er -'i*' +'e pri"+e responden+s did no+ re32+. T'2s# expressed in +er0s o/ 0one.#
+'e *onsider+ion /or +'e deed o/ op+ion is +'e di//eren*e 3e+-een +'e p2r*'se pri*e o/ +'e 566 s72re
0e+er por+ion o/ +'e !o+ in 18%1 <&%6.66 per s7. 0.= nd +'e pre"i!in1 reson3!e pri*e o/ +'e s0e !o+ in
18%1. W'+e"er i+ is# <&)>.66 or &1(.66= +'o21' no+ spe*i/i*!!. s++ed in +'e deed o/ op+ion# -s
s*er+in3!e. &e+i+ioners4 !!e1ed!. p.in1 &>).66 per s72re 0e+er /or +'e op+ion 0.# s opined 3. +'e
ppe!!+e *o2r+# 'e i0pro33!e 32+ i0pro33i!i+ies does no+ in"!id+e *on+r*+ /ree!. en+ered in+o 3. +'e
pr+ies.
T'e ,deed o/ op+ion, en+ered in+o 3. +'e pr+ies in +'is *se 'd 2ni72e /e+2res. Ordinri!.# n op+ion!
*on+r*+ is pri"i!e1e exis+in1 in one person# /or -'i*' 'e 'd pid *onsider+ion nd -'i*' 1i"es 'i0
+'e ri1'+ +o 32.# /or ex0p!e# *er+in 0er*'ndise or *er+in spe*i/ied proper+.# /ro0 no+'er person# i/ 'e
*'ooses# + n. +i0e -i+'in +'e 1reed period + /ixed pri*e <Enri72ez de ! C"d ". Diz# 5% &'i!.
8()=. I/ We !ooA *!ose!. + +'e ,deed o/ op+ion, si1ned 3. +'e pr+ies# We -i!! no+i*e +'+ +'e /irs+ pr+
*o"ered +'e s++e0en+ on +'e s!e o/ +'e 566 s72re 0e+er por+ion o/ +'e !o+ +o Spo2ses Vi!!0or + +'e
pri*e o/ &%6.66 per s72re 0e+er K-'i*' -s 'i1'er +'n +'e *+2! reson3!e pre"i!in1 "!2e o/ +'e
!nds in +'+ p!*e + +'+ +i0e <o/ s!e=., T'e se*ond pr+ s++ed +'+ +'e on!. reson -'. +'e Vi!!0or
spo2ses 1reed +o 32. +'e sid !o+ + 02*' 'i1'er pri*e is 3e*2se +'e "endor <Re.es= !so 1reed +o se!!
+o +'e Vi!!0ors +'e o+'er '!/;por+ion o/ 566 s72re 0e+ers o/ +'e !nd. Ed +'e deed s+opped +'ere# +'ere
-o2!d 3e no disp2+e +'+ +'e deed is re!!. n ordinr. deed o/ op+ion 1rn+in1 +'e Vi!!0ors +'e op+ion +o
32. +'e re0inin1 566 s72re 0e+er;'!/ por+ion o/ +'e !o+ in *onsider+ion /or +'eir '"in1 1reed +o 32.
+'e o+'er '!/ o/ +'e !nd /or 02*' 'i1'er pri*e. B2+# +'e ,deed o/ op+ion, -en+ on nd s++ed +'+ +'e
s!e o/ +'e o+'er '!/ -o2!d 3e 0de ,-'ene"er +'e need o/ s2*' s!e rises# ei+'er on o2r <Re.es= pr+ or
on +'e pr+ o/ +'e Spo2ses D2!io Vi!!0or nd :rin V. Vi!!0or. I+ ppers +'+ -'i!e +'e op+ion +o 32.
-s 1rn+ed +o +'e Vi!!0ors# +'e Re.es -ere !iAe-ise 1rn+ed n op+ion +o se!!. In o+'er -ords# i+ -s no+
on!. +'e Vi!!0ors -'o -ere 1rn+ed n op+ion +o 32. /or -'i*' +'e. pid *onsider+ion. T'e Re.es s
-e!! -ere 1rn+ed n op+ion +o se!! s'o2!d +'e need /or s2*' s!e on +'eir pr+ rise.
In +'e ins+n+ *se# +'e op+ion o//ered 3. pri"+e responden+s 'd 3een **ep+ed 3. +'e pe+i+ioner# +'e
pro0ises# in +'e s0e do*20en+. T'e **ep+n*e o/ n o//er +o se!! /or pri*e *er+in *re+ed 3i!+er!
*on+r*+ +o se!! nd 32. nd 2pon **ep+n*e# +'e o//ered# ipso /*+o ss20es o3!i1+ions o/ "endee <See
A+Ains# Bro!! C Co. ". C2 :in TeA# 16) &'i!. 8@(=. De0nd3i!i+. 0. 3e exer*ised + n. +i0e /+er
+'e exe*2+ion o/ +'e deed. In Sn*'ez ". Ri1os# No. L;)>@8@# D2ne 1@# 18%)# @> SCRA 5$(# 5%$# We
'e!dH91*H*'nro3!es.*o0.p'
,In o+'er -ords# sin*e +'ere 0. 3e no "!id *on+r*+ -i+'o2+ *2se o/ *onsider+ion# +'e pro0isor is no+
3o2nd 3. 'is pro0ise nd 0.# **ordin1!. -i+'dr- i+. &endin1 no+i*e o/ i+s -i+'dr-!# 'is **ep+ed
pro0ise pr+Aes# 'o-e"er# o/ +'e n+2re o/ n o//er +o se!! -'i*'# i/ **ep+ed# res2!+s in per/e*+ed
*on+r*+ o/ s!e.,*r!- "ir+21- !i3rr.
A *on+r*+ o/ s!e is# 2nder Ar+i*!e 1@%> o/ +'e Ci"i! Code# ,per/e*+ed + +'e 0o0en+ +'ere is 0ee+in1 o/
0inds 2pon +'e +'in1 -'i*' is +'e o39e*+ o/ +'e *on+r*+ nd 2pon +'e pri*e. Fro0 +'+ 0o0en+# +'e pr+ies
0. re*ipro*!!. de0nd per/or0n*e# s239e*+ +o +'e pro"isions o/ +'e !- 1o"ernin1 +'e /or0 o/
*on+r*+s., Sin*e +'ere -s# 3e+-een +'e pr+ies# 0ee+in1 o/ 0inds 2pon +'e o39e*+ nd +'e pri*e# +'ere
-s !red. per/e*+ed *on+r*+ o/ s!e. W'+ -s# 'o-e"er# !e/+ +o 3e done -s /or ei+'er pr+. +o
de0nd /ro0 +'e o+'er +'eir respe*+i"e 2nder+Ain1s 2nder +'e *on+r*+. I+ 0. 3e de0nded + n. +i0e
ei+'er 3. +'e pri"+e responden+s# -'o 0. *o0pe! +'e pe+i+ioners +o p. /or +'e proper+. or +'e
pe+i+ioners# -'o 0. *o0pe! +'e pri"+e responden+s +o de!i"er +'e proper+..
Eo-e"er# +'e Deed o/ Op+ion did no+ pro"ide /or +'e period -i+'in -'i*' +'e pr+ies 0. de0nd +'e
per/or0n*e o/ +'eir respe*+i"e 2nder+Ain1s in +'e ins+r20en+. T'e pr+ies *o2!d no+ '"e *on+e0p!+ed
+'+ +'e de!i"er. o/ +'e proper+. nd +'e p.0en+ +'ereo/ *o2!d 3e 0de inde/ini+e!. nd render 2n*er+in
+'e s++2s o/ +'e !nd. T'e /i!2re o/ ei+'er pr+ies +o de0nd per/or0n*e o/ +'e o3!i1+ion o/ +'e o+'er
/or n 2nreson3!e !en1+' o/ +i0e renders +'e *on+r*+ ine//e*+i"e.*'nro3!es.*o0H*r!-Hred
?nder Ar+i*!e 11@@ <1= o/ +'e Ci"i! Code# *+ions 2pon -ri++en *on+r*+ 02s+ 3e 3ro21'+ -i+'in +en <16=
.ers. T'e Deed o/ Op+ion -s exe*2+ed on No"e03er 11# 18%1. T'e **ep+n*e# s !red. 0en+ioned#
-s !so **ep+ed in +'e s0e ins+r20en+. T'e *o0p!in+ in +'is *se -s /i!ed 3. +'e pe+i+ioners on D2!.
15# 18(%# se"en+een <1%= .ers /ro0 +'e +i0e o/ +'e exe*2+ion o/ +'e *on+r*+. Een*e# +'e ri1'+ o/ *+ion
'd pres*ri3ed. T'ere -ere !!e1+ions 3. +'e pe+i+ioners +'+ +'e. de0nded /ro0 +'e pri"+e responden+s
s er!. s 18(@ +'e en/or*e0en+ o/ +'eir ri1'+s 2nder +'e *on+r*+. S+i!!# i+ -s 3e.ond +'e +en <16= .er
period pres*ri3ed 3. +'e Ci"i! Code. In +'e *se o/ Sn+os ". Gn.o# L;51(>@# Sep+e03er 8# 18()# 11$
SCRA @51# +'is Co2r+ //ir0in1 nd s23s*ri3in1 +o +'e o3ser"+ions o/ +'e *o2r+ 72o 'e!d#
+'2sH91*H*'nro3!es.*o0.p'
,. . . Ass20in1 +'+ Ros Gn.o# +'e opposi+or 'erein# 'd +'e ri1'+ 3sed on +'e A1ree0en+ +o Con"e.
nd Trns/er s *on+ined in Ex'i3i+s K14 nd K1;A4# 'er /i!2re or +'e 3ndon0en+ o/ 'er ri1'+ +o /i!e n
*+ion 1ins+ &2!0no :o!in+s -'en 'e -s s+i!! *o;o-ner o/ +'e one;'!/ <1L)= por+ion o/ +'e 16#666
s72re 0e+ers is no- 3rred 3. !*'es nd or pres*ri3ed 3. !- 3e*2se s'e /i!ed +o 3rin1 s2*' *+ion
-i+'in +en <16= .ers /ro0 +'e d+e o/ +'e -ri++en 1ree0en+ in 18@1# p2rs2n+ +o Ar+. 11@@ o/ +'e Ne-
Ci"i! Code# so +'+ -'en s'e /i!ed +'e d"erse *!i0 +'ro21' 'er *o2nse! in 18>8 s'e 'd 3so!2+e!. no
0ore ri1'+ -'+soe"er on +'e s0e# '"in1 3een 3rred 3. !*'es.
I+ is o/ 92di*i! no+i*e +'+ +'e pri*e o/ re! es++e in :e+ro :ni! is *on+in2o2s!. on +'e rise. To !!o- +'e
pe+i+ioner +o de0nd +'e de!i"er. o/ +'e proper+. s239e*+ o/ +'is *se +'ir+een <15= .ers or se"en+een <1%=
.ers /+er +'e exe*2+ion o/ +'e deed + +'e pri*e o/ on!. &%6.66 per s72re 0e+er is ine72i+o2s. For
resons !so o/ e72i+. nd in *onsider+ion o/ +'e /*+ +'+ +'e pri"+e responden+s '"e no o+'er de*en+
p!*e +o !i"e# +'is Co2r+# in +'e exer*ise o/ i+s e72i+. 92risdi*+ion is no+ in*!ined +o 1rn+ pe+i+ioners4 pr.er.
ACCORDINGLF# +'e pe+i+ion is DENIED. T'e de*ision o/ responden+ ppe!!+e *o2r+ is AFFIR:ED /or
resons *i+ed in +'is de*ision. D2d10en+ is rendered dis0issin1 +'e *o0p!in+ in Ci"i! Cse No. C;1)8@)
on +'e 1ro2nd o/ pres*rip+ion nd !*'es.*'nro3!es "ir+2! !-!i3rr.
SO ORDERED.