- Petitioner
- Federico Serra
- Respondent
- The Hon. Court of Appeals
- Citation
- G.R. No. 103338
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Nocon, J.
- Decided
- January 4, 1994
Summary
This case involves a dispute over a lease contract with option to buy between property owner Federico Serra and RCBC. Serra refused to honor RCBC's exercise of its purchase option, arguing lack of consideration and contract inequity due to inflation. The Supreme Court affirmed lower courts' rulings that the contract was valid and enforceable. The Court held that the option was supported by consideration distinct from price - specifically, the lessee's obligation to transfer building improvements to the lessor if the option wasn't exercised. The price term 'not greater than P210 per square meter' was deemed certain and definite. The Court rejected arguments about contract adhesion, noting Serra's educational background as a CPA-Lawyer, and found no extraordinary inflation warranting price adjustment. The decision reinforces principles of contract validity, option contracts, and the requirement of distinct consideration for unilateral promises under Civil Code Articles 1324 and 1479.