Dizon vs. Ca
Dizon vs. Ca
Dizon vs. Ca
CA
G.R. No. 122544 January 28, 1999
FACTS:
On 1974, Private respondent Overland Express Lines, Inc entered into a Contract of
Lease with Option to buy with petitioners involving a land situated at Quezon City for one
(1) year. During that period the respondent was granted an option to purchase the land.
In 1976, for failure of lessee to pay the rentals the petitioners filed an action for
ejectment. The City Court rendered judgment ordering lessee to vacate the leased premises
and to pay the rentals in arrears and damages with interests. Lessee filed a petition enjoining
the enforcement of said judgment and dismissal of the case for lack of jurisdiction. Such
petition was denied.
Thereafter, lessee filed for an action for specific performance to compel the execution
of a deed of sale pursuant to the option to purchase and the receipt of the partial
consideration given to Alice Dizon and for the fixing of period to pay the balance. Respondent
Court of Appeals rendered a decision upholding the jurisdiction of City Court and concluding
that there was a perfected contract of sale between the parties due to the said partial
payment. Petitioner’s motion for reconsideration was denied by the respondent Court.
ISSUE:
Whether or not the contract of sale between petitioners and private respondent is
perfected.
RULING:
There was no perfected contract of sale between the parties. Under Article 1475 of
the New Civil Code, "the contract of sale is perfected at the moment there is a meeting of
minds upon the thing which is the object of the contract and upon the price. From that
moment, the parties may reciprocally demand performance, subject to the provisions of the
law governing the form of contracts." Thus, the elements of a contract of sale are consent,
object, and price in money or its equivalent. It bears stressing that the absence of any of these
essential elements negates the existence of a perfected contract of sale. Sale is a consensual
contract and he who alleges it must show its existence by competent proof.