Title
Beaumont vs. Prieto
Case
G.R. No. 8988
Decision Date
Mar 30, 1916
Borck negotiated to buy Nagtajan Hacienda via Valdes, but acceptance terms deviated; SC ruled no binding contract due to non-conforming payment terms, absolving defendants.

Case Summary (G.R. No. 8988)

Key Dates

  • December 4, 1911: Option to purchase provided.
  • January 19, 1912: Plaintiff accepts the terms.
  • February 12, 1912: Judgment rendered by the Court of First Instance.

Applicable Law

  • Civil Code of the Philippines

Factual Background

Negotiations began between W. Borck and Benito Valdes regarding the purchase of the Nagtahan Hacienda belonging to Benito Legarda. On December 4, 1911, Valdes granted Borck a three-month option to purchase the property at its assessed valuation. Following the option grant, Borck expressed dissatisfaction with the response from Valdes, leading to him filing a complaint in April 1912. This complaint included claims of damages for failure to complete the sale, presenting a request for specific performance, an accounting of profits, and damages.

Complaints and Defenses

The initial complaint was amended to include additional allegations, asserting Borck had accepted the option in writing and requested access to property documents. Valdes filed a demurrer, claiming misjoinder and an ambiguous complaint. Legarda filed a similar demurrer against the amended complaint, asserting it did not provide a right against him. Both demurrers were denied, allowing the case to proceed to trial.

Court Findings

During the trial, the Court found that Valdes, acting as Legarda's agent, offered an option to Borck which he subsequently accepted. The Court held that the plaintiff's acceptance qualified as performance of the contract since no rejection of the option occurred during its validity. The judgment ordered Legarda to provide a deed of conveyance only upon payment of the agreed purchase price of P307,000.

Appellate Proceedings and Disputes

Following the judgment, Valdes and Legarda appealed, arguing predominantly that the lower court had erred in its handling of the demurrers and interpretation of the option contract. They contended that the attempt to implement payment terms altered the original conditions of the agreement, asserting that there was no binding contract due to the lack of mutual consent on the agreed payment terms.

Supreme Court's Analysis and Decision

The Supreme Court held that the offer extended by Valdes was contingent on Borck's acceptance under specific terms, including payment structure. It concluded that Borck's acceptance deviated from the terms of th

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