1) The April 17, 1988 letter between Licup and Msgr. Cirilos constituted a perfected contract of sale. However, when Licup ordered a stop payment on his deposit and proposed transferring the property to SSE instead, a subjective novation took place which opened negotiations for a new contract.
2) The subsequent exchange of letters between SSE and Msgr. Cirilos showed they had not reached an agreement on key issues like occupant removal and price, indicating no perfected contract between them.
3) The ₱100,000 payment was considered option money rather than earnest money since the parties only exchanged proposals but did not consent to a final offer, so no perfected sale occurred.
Original Description:
92. Starbright Sales vs. Philippine Realty Corporation
Original Title
92. Starbright Sales vs. Philippine Realty Corporation
1) The April 17, 1988 letter between Licup and Msgr. Cirilos constituted a perfected contract of sale. However, when Licup ordered a stop payment on his deposit and proposed transferring the…