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    City Lite V CA

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    Maribel Nicole Lopez
    The Court of Appeals reversed the trial court's ruling in favor of City-Lite Realty Corporation. There was no perfected contract of sale between City-Lite and FP Holdings for the property because there was no definite agreement on the payment terms. Additionally, Metro Drug and Meldin Al Roy did not have written authority from FP Holdings to sell the property, as required by law. The Supreme Court affirmed the Court of Appeals' decision, finding no valid sale was concluded because of the lack of authorization and definite payment terms.

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    City Lite V CA

    Uploaded by

    Maribel Nicole Lopez
    590 views3 pages
    The Court of Appeals reversed the trial court's ruling in favor of City-Lite Realty Corporation. There was no perfected contract of sale between City-Lite and FP Holdings for the property because there was no definite agreement on the payment terms. Additionally, Metro Drug and Meldin Al Roy did not have written authority from FP Holdings to sell the property, as required by law. The Supreme Court affirmed the Court of Appeals' decision, finding no valid sale was concluded because of the lack of authorization and definite payment terms.

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    10. City Lite v CA

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    The Court of Appeals reversed the trial court's ruling in favor of City-Lite Realty Corporation. There was no perfected contract of sale between City-Lite and FP Holdings for the property because there was no definite agreement on the payment terms. Additionally, Metro Drug and Meldin Al Roy did not have written authority from FP Holdings to sell the property, as required by law. The Supreme Court affirmed the Court of Appeals' decision, finding no valid sale was concluded because of the lack of authorization and definite payment terms.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    590 views3 pages

    City Lite V CA

    Uploaded by

    Maribel Nicole Lopez
    The Court of Appeals reversed the trial court's ruling in favor of City-Lite Realty Corporation. There was no perfected contract of sale between City-Lite and FP Holdings for the property because there was no definite agreement on the payment terms. Additionally, Metro Drug and Meldin Al Roy did not have written authority from FP Holdings to sell the property, as required by law. The Supreme Court affirmed the Court of Appeals' decision, finding no valid sale was concluded because of the lack of authorization and definite payment terms.

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    The dispute is over the sale of a property by Metro Drug and Meldin Al Roy to City-Lite Realty Corporation.

    City-Lite agreed to buy a property from Metro Drug and Meldin Al Roy but the actual owner, F.P. Holdings, refused to execute the sale. City-Lite filed a case seeking to enforce the sale.

    The Court of Appeals ruled that no valid contract was formed because there was no definite agreement on payment terms and Metro Drug and Meldin Al Roy had no authority to sell the property.

    Topic Agency: Form of the contract of agency

    Case No. G.R. No. 138639. February 10, 2000


    Case Name City-Lite Realty Corporation vs. Court of Appeals
    Petitioner CITY-LITE REALTY CORPORATION
    Respondents COURT OF APPEALS and F.P. HOLDINGS & REALTY CORP., METRO
    DRUG, INC., MELDIN AL G. ROY, VIEWMASTER CONSTRUCTION
    CORP., and the REGISTER OF DEEDS OF QUEZON CITY
    Ponente BELLOSILLO, J

    RELEVANT FACTS
     F.P. HOLDINGS, formerly the Sparta Holdings Inc., was the registered owner of a parcel
    of land situated along E. Rodriguez Avenue, Quezon City, also known as the “Violago
    Property” or the “San Lorenzo Ruiz Commercial Center” The property was offered for sale
    to the general public through the circulation of a sales brochure (see notes)
     August 1991 Roy sent a sales brochure, together with the location plan and copy of the
    TCT, to Atty. Gelacio Mamaril, a practicing lawyer and a licensed real estate broker. Atty.
    Mamaril in turn passed on these documents to Antonio Teng, Executive Vice-President,
    and Atty. Victor P.Villanueva, Legal Counsel, of CITY-LITE.
     September 1991 City lite in a letter dated addressed to Metro Drug( Meldin Al Roy)
    conveyed its interest to purchase ½ of the front lot of the “Violago Property”
     Roy replied stating it would take time to subdivide the lot, and that FP Holdings was not
    partial to the purchase of only half the front lot.
     Atty. Mamaril then expressed City-Lite’s interest to purchase the whole front lot, provided
    the asking price of P6,250.00 per square meter was reduced in price and that payment
    be made in instalments
     Roy made a counter offer:
    - Price shall be 6,250.00 per square meter for a total of P57,450,000.00
    - Purchased as follows: 15 million peso down payment, balance payable within six months from
    date of down payment without interest
     September 26, 1991: City Lite’s officers and Attorney mamaril met with Roy at Manila
    Mandarin Hotel to consummate the transaction.
     Roy agreed to sell the property to City Lite provided that the latter submit its acceptance
    in writing to the terms and conditions of the sale contained in the letter dated September
    25, 1991
     FP Holdings refused to execute the deed of sale in favor of City Lite of the front of the
    property.
     City Lite registered an adverse claim to the title of the property with the register of deeds
    of QC
     October 4, 1991 - FP Holdings filed a petition for the cancellation of the adverse claim
    against City Lite
     October 8, 1991 – Edwin Fernandez met with City Lite’s officers to amicably settle. He
    offered properties located in Caloocan and QC as a substitute to the property
     City Lite refused, stating “it did not suit its business needs.”
     RTC: Dismissed FP Holdings – CITY LITE’s adverse claim had factual basis
     City LITE then instituted a complaint against FP Holdings for specific performance
    and damages
     Complaint was amended to implead VIEWMASTER as a necessary party
     RTC Ruled in Favor of City Lite, ordering FP Holdings to execute a deed of sale of the
    property in favor of City Lite for the total Consideration of P55,056,25.00
     15M downpaymant, to be payable upon execution of the deed of sale, and the
    balance within six months
     CA: reversed and set aside RTC – no contract of sale was perfected between it and
    respondents because of a lack of a definite agreemtn on the manner of paying the
    purchase price and that respondents Metro Drug and Meldin Al G. Roy were not authoried
    to sell the property to CITY LITE

    RATIO DECIDENDI

    Issue Ratio
    W/N Metro Drug and NO.
    Meldin Al G. Roy were
    authorized to sell the The absence of authority to sell can be determined from the written
    property to CITY-LITE, memorandum issued by respondent F.P. HOLDINGS
    President requesting Metro Drug’s assistance in finding buyers for
    the property. The memorandum in part stated:
    We will appreciate Metro Drugs assistance in referring to
    us buyers for the property. Please proceed to hold
    preliminary negotiations with interested buyers and
    endorse formal offers to us for our final evaluation and
    appraisal.
    This obviously meant that Meldin Al G. Roy and/or Metro Drug was
    only to assist F.P. HOLDINGS in looking for buyers and referring
    to them possible prospects whom they were supposed to endorse
    to F.P. HOLDINGS. But the final evaluation, appraisal and
    acceptance of the transaction could be made only by F.P.
    HOLDINGS.

    Meldin Al G. Roy and/or Metro Drug was only a contact person with
    no authority to conclude a sale of the property.

    In fact, a witness for petitioner even admitted that Roy and/or Metro
    Drug was a mere broker, and Roy’s only job was to bring
    the parties together for a possible transaction
    On the issue of whether a Civil Code provides: When the sale of a piece of land or any
    contract of sale was interest therein is through an agent, the authority of the
    perfected between latter shall be in writing; otherwise, the sale shall be void.
    CITYLITE and F.P.
    HOLDINGS Consequently, we hold that for lack of a written authority to sell the
    „Violago Property‰ on the part of Meldin Al G. Roy and/or Metro
    Drug, the sale should be as it is declared null and void. Therefore
    the sale could not produce any legal effect as to transfer the
    subject property from its lawful owner, F.P. HOLDINGS, to any
    interested party including petitioner CITY-LITE.

    RULING
    WHEREFORE, the appealed Decision of the Court of Appeals being in accord with law and the
    evidence is AFFIRMED. Costs against petitioner CITY-LITE REALTYCORPORATION.
    SO ORDERED.

    NOTES
    Sales Brochure content:
    A parcel of land including buildings and other improvements thereon located along E. Rodriguez
    Avenue, Quezon City, with a total lot area of 71,754 square meters ·9,192 square meters in front,
    23,332 square meters in the middle, and 39,230 square meters at the back. But the total area
    for sale excludes 5,000 square meters covering the existing chapel and adjoining areas which
    will be donated to the Archdiocese of Manila thus reducing the total saleable area to 66,754
    square meters. Asking price was P6,250.00/square meter with terms of payment negotiable.
    Broker’s commission was 2.0% of selling price, net of withholding taxes and other charges. As
    advertised, contact person was Meldin Al G. Roy, Metro Drug Inc., with
    address at 5/F Metro House, 345 Sen. Gil Puyat Avenue, Makati City.

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