Hartford Beaumont v. Mauro Prieto

Summary

This landmark 1916 Supreme Court case established crucial principles for contract formation in real estate options. Borck received a three-month option to purchase the Nagtajan Hacienda for P307,000 cash, but his acceptance letters modified the payment terms to allow installment payments extending months beyond the option period. The Supreme Court reversed the trial court's specific performance order, holding that contract formation requires identical mutual assent on all essential terms. The Court applied Civil Code provisions requiring that acceptance be unequivocal and without variance from the original offer. Any material modification of terms, particularly payment conditions, prevents contract formation unless expressly agreed to by the offeror. The decision reinforced that real estate options require strict compliance with stated terms and that unilateral modifications by the offeree render the acceptance invalid, making the case foundational precedent for Philippine contract law.