Facts:

• People's Industrial and Commercial Corporation (petitioner) entered into agreements with Mar-ick Investment Corporation (private respondent) to purchase six lots in Mar-ick Subdivision, Cainta, Rizal, on May 29, 1961.
• The petitioner paid the down payment and eight installments but failed to complete the payments over ten years.
• The agreements stipulated automatic cancellation without notice if payments were not completed within 120 days from the due date. The private respondent canceled the contracts accordingly.
• After negotiations, an unsigned draft contract to sell seven lots was created on October 11, 1983.
• The petitioner issued five checks amounting to P37,642.72, which the private respondent received but did not encash.
• The private respondent filed a complaint for accion publiciana de posesion.
• The Regional Trial Court validated the cancellation of the original agreements and ordered the petitioner to pay rentals and attorney's fees.
• The Court of Appeals affirmed the lower court's decision.
• The petitioner sought review by the Supreme Court.

Issue:

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Ruling:

1. The Supreme Court ruled that the issue of jurisdiction was precluded by estoppel due to the petitioner's active participation in the proceedings.
2. The Court found that the new contract to sell was not perfected and enforceable.
3. The Court did not find it necessary to discuss the is...(Unlock)

Ratio:

1. Jurisdiction and Estoppel:

   • The petitioner was estopped from questioning jurisdiction due to its active participation in proceedings without initially raising the issue.
   • The legal bases cited by the petitioner were not applicable as they did not exist when the contracts were canceled in 1971.

2. Perfection of the New Contract:

   • The draft contract in 1983 was not signed, and there was no meeting of the minds on essential terms.
   • The checks issued by the petitioner were not encashed, and no further performance or payment occurred, so the new contract ...continue reading