Rodrigo B. Bangayan v. The Honorable Court of Appeals

Summary

This case involves the assignability of a right of first option under a lease contract. Teofista Ocampo, as lessee, had a right of first option to purchase leased property. When lessor Petronilla Lingat sold to the Bangayans instead, Ocampo sued for annulment. After Ocampo's death, her daughter Angelita claimed to have been assigned the right of first option. The Supreme Court ruled that the lease contract's prohibition against assignment of lease rights extended to the right of first option, as it was an integral component of the lease relationship. The Court emphasized that contractual stipulations limiting assignability must be respected under Articles 1311 and 1649 of the Civil Code. The decision protects the personal nature of lease relationships and the parties' freedom to limit assignability of their contractual rights.