Visitacion Gabelo v. Court of Appeals

Summary

This case involves a dispute over the right to purchase leased property in Intramuros, Manila. Philippine Realty Corporation leased property to Ursula Maglente with a contractual clause granting her first priority to purchase. Maglente subleased portions to petitioners without PRC's consent. When PRC offered to sell, both Maglente's group and the petitioners claimed purchase rights. The Supreme Court affirmed lower courts' rulings favoring Maglente's group, holding that actual occupation alone does not create preferential purchase rights absent contractual agreement. The Court emphasized freedom of contract principles and ruled that the sale was already perfected through offer, acceptance, and partial payment under Civil Code Article 1318. The decision clarifies that contractual rights take precedence over mere occupancy in property transactions.