- Petitioner
- United Muslim
- Respondent
- Buen
- Citation
- G.R. No. 179653
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Nachura, J.
- Decided
- July 31, 2009
Summary
UMCUPAI, a squatter organization, sought to annul SFC's sale of Lot 300-C to BRYC, claiming their 1991 Letter of Intent created binding obligation for exclusive purchase rights. The Supreme Court affirmed lower courts' dismissal, ruling the Letter of Intent was merely a manifestation of intention to facilitate UMCUPAI's loan application, not a binding contract. The Court distinguished between conditional contracts of sale and bilateral contracts to sell under the Civil Code, emphasizing that intentions alone cannot create legal obligations. The Letter of Intent contained no promise or commitment for exclusive sale, only declarations of intention subject to UMCUPAI's ability to raise funds. After nearly four years and successfully purchasing a larger portion (Lot 300-A), UMCUPAI's failure to acquire Lot 300-C before SFC's sale to BRYC was not attributable to any breach by SFC.