Title
1st Optima Realty Corp. vs. Securitron Security Services, Inc.
Case
G.R. No. 199648
Decision Date
Jan 28, 2015
Petitioner, a property owner, declined respondent's purchase offer; respondent paid earnest money irregularly. SC ruled no perfected sale, refund ordered.

Case Digest (G.R. No. L-6641)
Expanded Legal Reasoning Model

Facts:

  • Parties
    • Petitioner: First Optima Realty Corporation, a domestic real‐estate corporation and registered owner of a 256‐sqm parcel in Pasay City (TCT No. 125318).
    • Respondent: Securitron Security Services, Inc., a domestic corporation seeking to expand its adjacent office space.
  • Pre‐contractual Negotiations
    • December 9, 2004 – Respondent, through GM Antonio Eleazar, offered to buy the subject property at ₱6,000/sqm via letter to Petitioner’s EVP, Carolina Young.
    • Subsequent telephone and in‐person talks occurred but no board approval or final consent was obtained; Young repeatedly deferred pending sister’s advice and Board resolution.
  • Delivery of Letter and Payment
    • February 4, 2005 – Respondent sent a letter reiterating the offer and enclosed P100,000 check as “earnest money,” to be followed by full payment upon tenant clearance and Deed of Sale signing.
    • The envelope was handed to a receiving clerk, who issued Provisional Receipt No. 33430; the check was later deposited into Petitioner’s bank account without further acknowledgment.
  • Petitioner’s Refusal and Correspondence
    • March 3, 2006 – Petitioner’s March 3, 2006 letter to Respondent’s counsel: no prior contract, no Board resolution, money accepted under duress, declining sale and demanding refund.
    • April 18, 2006 – Respondent filed RTC Civil Case No. 06-0492 CFM for specific performance and damages.
  • Procedural History
    • February 16, 2009 – RTC Pasay Branch 115 ordered Petitioner to accept balance ₱1,536,000.99 and execute Deed of Sale.
    • September 30, 2011 – CA affirmed RTC ruling, holding a perfected sale existed and earnest money was valid.
    • December 9, 2011 – CA denied Petitioner’s motion for reconsideration.
    • October 9, 2013 – SC granted Petitioner’s petition for review on certiorari.

Issues:

  • Whether the ₱100,000 delivered on February 4, 2005 constituted earnest money binding Petitioner to a perfected contract of sale.
  • Whether Petitioner’s delay in replying to the February 4, 2005 letter and in returning the money establishes acceptance by silence or estoppel.
  • Whether the reservation in Provisional Receipt No. 33430 precludes deeming the payment as accepted earnest money.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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