UNITED MUSLIM AND CHRISTIAN

URBAN POOR ASSOCIATION, INC.

represented by its President, MANUEL V.
BUEN,
Petitioner,


- versus -


BRYC-V DEVELOPMENT
CORPORATION represented by its
President, BENJAMIN QUIDILLA; and
SEA FOODS CORPORATION,
represented by its Executive Vice President,
VICENTE T. HERNANDEZ,
Respondents.
G.R. No. 17!"#

Present:

YNARES-SANTIAGO, J.,
Chairperson,
CHICO-NAZARIO,
VEASCO, !R.,
NACH"RA, #nd
PERATA, JJ.

Pro$u%&#ted:

!u%' (), *++,

x------------------------------------------------------------------------------------x


DECISION

NACHURA, J.$

T-is petition .or revie/ on certiorari see0s to set #side t-e 1e2ision
)
3)4 o. t-e Court o.
Appe#%s 5CA6 in CA G.R. CV No. 7*889 /-i2- #..ir$ed in toto t-e 1e2ision
*
3*4 o. t-e
Re&ion#% Tri#% Court 5RTC6, :r#n2- )7, Z#$;o#n&# Cit' in Civi% C#se No. <795<8<<6.

T-e .#2ts #re si$p%e.

Respondent Se# =oods Corpor#tion 5S=C6 is t-e re&istered o/ner o. ot No. (++ %o2#ted
in o/er C#%#in#n, Z#$;o#n&# Cit' #nd 2overed ;' Tr#ns.er Certi.i2#te o. Tit%e 5TCT6 No.
()>* 5T-8976.

So$eti$e in ),,), petitioner "nited ?us%i$ #nd C-risti#n "r;#n Poor Asso2i#tion, In2.
5"?C"PAI6, #n or&#ni@#tion o. sAu#tters o22up'in& ot No. (++, t-rou&- its President,
C#r$en T. 1io%#, initi#ted ne&oti#tions /it- S=C .or t-e pur2-#se t-ereo.. "?C"PAI
eBpressed its intention to ;u' t-e su;Ce2t propert' usin& t-e pro2eeds o. its pendin& %o#n
#pp%i2#tion /it- N#tion#% Ho$e ?ort&#&e =in#n2e Corpor#tion 5NH?=6. T-ere#.ter, t-e p#rties
eBe2uted # etter o. Intent to Se%% ;' 3S=C4 #nd etter o. Intent to Pur2-#se ;' "?C"PAI,
providin&, in pertinent p#rt:

DHEREAS, 3S=C4 is t-e re&istered o/ner o. # p#r2e% 3o.4 %#nd desi&n#ted #s ot No.
(++ situ#ted in o/er C#%#ri#n, Z#$;o#n&# Cit', 2onsistin& o. 7),9(7 sAu#re $eters, #nd $ore
p#rti2u%#r%' des2ri;ed in Tr#ns.er Certi.i2#te o. Tit%e No. 897 o. t-e Re&istr' o. 1eeds o.
Z#$;o#n&# Cit'E

DHEREAS, "?C"PAI, #n #sso2i#tion du%' re&istered /it- t-e SEC 5Re&istr#tion No.
<+(<)+6 #nd du%' #22redited /it- t-e Presidenti#% Co$$ission .or t-e "r;#n Poor, -#s
#ppro#2-ed 3S=C4 #nd ne&oti#ted .or t-e ACF"ISITION o. t-e #;ove-des2ri;ed propert' o.
3S=C4E
1
2

DHEREAS, in pursu#n2e to t-e ne&oti#tions ;et/een 3S=C4 #nd "?C"PAI, t-e %#tter
-#s t#0en steps /it- t-e proper &overn$ent #ut-orities p#rti2u%#r%' t-e ?#'or o. Z#$;o#n&#
Cit' #nd its Cit' Housin& :o#rd /-i2- /i%% #2t #s GOri&in#torH in t-e #2Auisition o. s#id propert'
/-i2- /i%% en#;%e "?C"PAI to #v#i% o. its Co$$unit' ?ort&#&e Pro&r#$E

DHEREAS, it #ppe#rs t-#t "?C"PAI /i%% u%ti$#te%' #pp%' /it- t-e Ho$e ?ort&#&e
#nd =in#n2e Corpor#tion .or # %o#n to p#' t-e #2Auisition pri2e o. s#id %#ndE

DHEREAS, #s one o. t-e steps reAuired ;' t-e &overn$ent #ut-orities to initi#te
pro2eedin&s is to re2eive # .or$#% $#ni.est#tion o. Intent to Se%% .ro$ 3S=C4E

NOD, THERE=ORE, .or #nd in 2onsider#tion o. t-e .ore&oin& pre$ises, t-e p#rties
-ereto #&ree #s .o%%o/s:

). 3S=C4 eBpress%' de2%#res its intention to se%% ot No. (++ /it- #n #re# o. 7),9(7
sAu#re $eters situ#ted in o/er C#%#ri#n, Z#$;o#n&# Cit' #nd 2overed ;' TCT No. 897 o. t-e
Re&istr' o. 1eeds o. Z#$;o#n&# Cit' to "?C"PAI #t t-e pri2e o. P)+8.++ per sAu#re $eter,
.ree .ro$ #%% %iens, 2-#r&es #nd en2u$;r#n2esE

*. T-#t "?C"PAI -ere;' eBpress%' de2%#res its intention to ;u' t-e #.ores#id
propert' #nd s-#%% ende#vor to r#ise t-e ne2ess#r' .unds to #2Auire s#$e #t t-e #;ove$entioned
pri2e o. P)+8.++ per sAu#re $eterE

(. T-#t t-e A;so%ute 1eed o. S#%e s-#%% ;e eBe2uted, si&ned #nd de%ivered to&et-er
/it- t-e tit%e #nd #%% ot-er pertinent do2u$ents upon .u%% p#'$ent o. t-e pur2-#se pri2eE

<. T-#t 3S=C4 s-#%% p#' t-e 2#pit#% &#ins t#B #nd do2u$ent#r' st#$ps, Re&istr#tion,
tr#ns.er t#B #nd ot-er eBpenses s-#%% ;e p#id ;' t-e "?C"PAI.
(
3(4


Ho/ever, t-e intended s#%e /#s der#i%ed due to "?C"PAIIs in#;i%it' to se2ure t-e %o#n
.ro$ NH?= #s not #%% its $e$;ers o22up'in& ot No. (++ /ere /i%%in& to Coin t-e undert#0in&.
Intent on ;u'in& t-e su;Ce2t propert', "?C"PAI, in # series o. 2on.eren2es /it- S=C,
proposed t-e su;division o. ot No. (++ to #%%o/ t-e sAu#tter-o22up#nts to pur2-#se # s$#%%er
portion t-ereo..

ConseAuent%', so$eti$e in 1e2e$;er ),,<, ot No. (++ /#s su;divided into t-ree 5(6
p#rts 2overed ;' sep#r#te tit%es:
3

). ot No. (++-A /it- #n #re# o. <),<7+ sAu#re $eters under TCT No. T-))9,<<>E

*. ot No. (++-: /it- #n #re# o. ),<+8 sAu#re $eters under TCT No. T-))9,<<,E #nd

(. ot No. (++-C /it- #n #re# o. )>,>9* sAu#re $eters under TCT No. T-))9,<8+.

On !#nu#r' )), ),,8, "?C"PAI pur2-#sed ot No. (++-A .or P<,(8+,>+).8>. In turn,
ot No. (++-: /#s 2onstituted #s ro#d ri&-t o. /#' #nd don#ted ;' S=C to t-e %o2#%
&overn$ent.

"?C"PAI .#i%ed to #2Auire ot No. (++-C .or %#20 o. .unds. On ?#r2- 8, ),,8,
"?C"PAI ne&oti#ted #ne/ /it- S=C #nd /#s &iven ;' t-e %#tter #not-er t-ree $ont-s to
pur2-#se ot No. (++-C. Ho/ever, despite t-e eBtension, t-e t-ree-$ont- period %#psed /it-
t-e s#%e not 2onsu$$#ted ;e2#use "?C"PAI sti%% .#i%ed to o;t#in # %o#n .ro$ NH?=. T-us, on
!u%' *+, ),,8, S=C so%d ot No. (++-C .or P*,8<9,8>8.++ to respondent :RYC-V 1eve%op$ent
Corpor#tion 5:RYC6.

A 'e#r %#ter, "?C"PAI .i%ed /it- t-e RTC # 2o$p%#int #&#inst respondents S=C #nd
:RYC see0in& to #nnu% t-e s#%e o. ot No. (++-C, #nd t-e 2#n2e%%#tion o. TCT No. T-)*),8*(.
"?C"PAI #%%e&ed t-#t t-e s#%e ;et/een t-e respondents vio%#ted its v#%id #nd su;sistin&
#&ree$ent /it- S=C e$;odied in t-e etter o. Intent. A22ordin& to "?C"PAI, t-e etter o.
Intent &r#nted it # prior, ;etter, #nd pre.erred ri&-t over :RYC in t-e pur2-#se o. ot No. (++-
C.

In re.ut#tion, :RYC s#id t-#t "?C"PAIIs 2o$p%#int did not st#te # 2#use o. #2tion sin2e
"?C"PAI -#d uneAuivo2#%%' re2o&ni@ed its o/ners-ip o. ot No. (++-C /-en "?C"PAI
%i0e/ise sent :RYC # etter o. Intent d#ted Au&ust )>, ),,8 i$p%orin& :RYC to re-se%% t-e
su;Ce2t %ot.

In # sep#r#te Ans/er, S=C 2ountered t-#t t-e etter o. Intent d#ted O2to;er <, ),,) is
not, #nd 2#nnot ;e 2onsidered, # v#%id #nd su;sistin& 2ontr#2t o. s#%e. On t-e 2ontr#r', S=C
#verred t-#t t-e do2u$ent /#s dr#/n #nd eBe2uted $ere%' to #22o$$od#te "?C"PAI #nd
en#;%e it to 2o$p%' /it- t-e %o#n do2u$ent#tion reAuire$ents o. NH?=. In #%%, S=C $#int#ined
t-#t t-e etter o. Intent d#ted O2to;er <, ),,) /#s su;Ce2t to # 2ondition i.e., p#'$ent o. t-e
#2Auisition pri2e, /-i2- "?C"PAI .#i%ed to do /-en it did not o;t#in t-e %o#n .ro$ NH?=.

A.ter tri#%, t-e RTC dis$issed "?C"PAIIs 2o$p%#int. T-e %o/er 2ourt .ound t-#t t-e
etter o. Intent /#s eBe2uted to .#2i%it#te t-e #pprov#% o. "?C"PAIIs %o#n .ro$ NH?= .or its
intended pur2-#se o. ot No. (++. A22ordin& to t-e RTC, t-e etter o. Intent /#s si$p%' S=CIs
de2%#r#tion o. intention to se%%, #nd not # pro$ise to se%%, t-e su;Ce2t %ot. On t-e /-o%e, t-e RTC
2on2%uded t-#t t-e etter o. Intent /#s neit-er # pro$ise, nor #n option 2ontr#2t, nor #n o..er
2onte$p%#ted under Arti2%e )(), o. t-e Civi% Code, or # ;i%#ter#% 2ontr#2t to se%% #nd ;u'.

As previous%' #dverted to, t-e CA, on #ppe#%, #..ir$ed in toto t-e RTCIs ru%in&.

Hen2e, t-is re2ourse ;' "?C"PAI positin& # so%e issue .or our reso%ution:

IS THE ETTER O= INTENT TO SE AN1 ETTER O= INTENT TO :"Y A :IATERA
RECIPROCA CONTRACT DITHIN THE ?EANING OR CONTE?PATION O= ARTICE )<9,, =IRST
PARAGRAPH, CIVI CO1E O= THE PHIIPPINESJ
<
3<4


T-e petition deserves s2#nt 2onsider#tion. De 2o$p%ete%' #&ree /it- t-e %o/er 2ourtsI
ru%in&s.

De%%-entren2-ed in Curispruden2e is t-e ru%e t-#t .#2tu#% .indin&s o. t-e tri#% 2ourt,
espe2i#%%' /-en #..ir$ed ;' t-e #ppe%%#te 2ourt, #re #22orded t-e -i&-est de&ree o. respe2t #nd
#re 2onsidered 2on2%usive ;et/een t-e p#rties.
8
384 A revie/ o. su2- .indin&s ;' t-is Court is not
/#rr#nted eB2ept upon # s-o/in& o. -i&-%' $eritorious 2ir2u$st#n2es, su2- #s: 5)6 /-en t-e
.indin&s o. # tri#% 2ourt #re &rounded entire%' on spe2u%#tion, sur$ises or 2onCe2turesE 5*6 /-en
# %o/er 2ourtIs in.eren2e .ro$ its .#2tu#% .indin&s is $#ni.est%' $ist#0en, #;surd or i$possi;%eE
5(6 /-en t-ere is &r#ve #;use o. dis2retion in t-e #ppre2i#tion o. .#2tsE 5<6 /-en t-e .indin&s o.
t-e #ppe%%#te 2ourt &o ;e'ond t-e issues o. t-e 2#se, or .#i% to noti2e 2ert#in re%ev#nt .#2ts
/-i2-, i. proper%' 2onsidered, /ou%d Custi.' # di..erent 2on2%usionE 586 /-en t-ere is #
$is#ppre2i#tion o. .#2tsE 576 /-en t-e .indin&s o. .#2t #re 2on2%usions /it-out $ention o. t-e
spe2i.i2 eviden2e on /-i2- t-e' #re ;#sed, or #re pre$ised on t-e #;sen2e o. eviden2e, or #re
2ontr#di2ted ;' eviden2e on re2ord.
7
374 None o. t-e .ore&oin& eB2eptions ne2essit#tin& #
revers#% o. t-e #ss#i%ed de2ision o;t#in in t-is inst#n2e.

4
5
6
"?C"PAI is #d#$#nt, -o/ever, t-#t t-e CA erred /-en it #pp%ied t-e se2ond p#r#&r#p-
o. Arti2%e )<9, o. t-e Civi% Code inste#d o. t-e .irst p#r#&r#p- t-ereo.. "?C"PAI ur&es us t-#t
t-e .irst p#r#&r#p- o. Arti2%e )<9, 2onte$p%#tes # ;i%#ter#% re2ipro2#% 2ontr#2t /-i2- is ;indin&
on t-e p#rties. Yet, "?C"PAI is 2#re.u% not to desi&n#te t-e etter o. Intent #s # Contr#2t to
Se%%. "?C"PAI si$p%' insists t-#t t-e etter o. Intent is not # uni%#ter#% pro$ise to se%% or ;u'
/-i2- -#s to ;e supported ;' # 2onsider#tion distin2t .ro$ t-e pri2e .or it to ;e ;indin& on t-e
pro$issor. In s-ort, "?C"PAI 2%#i$s t-#t t-e etter o. Intent did not $ere%' &r#nt t-e p#rties
t-e option to respe2tive%' se%% or ;u' t-e su;Ce2t propert'. A%t-ou&- not st#ted p%#in%',
"?C"PAI 2%#i$s t-#t t-e etter o. Intent is eAuiv#%ent to # 2ondition#% 2ontr#2t o. s#%e su;Ce2t
on%' to t-e suspensive 2ondition o. p#'$ent o. t-e pur2-#se pri2e.

"?C"PAI #ppe#rs to %#;or under # 2%oud o. 2on.usion. T-e .irst p#r#&r#p- o. Arti2%e
)<9, 2onte$p%#tes t-e ;i%#ter#% re%#tions-ip o. # 2ontr#2t to se%% #s distin&uis-ed .ro$ # 2ontr#2t
o. s#%e /-i2- $#' ;e #;so%ute or 2ondition#% under Arti2%e )<8>
9
394 o. t-e s#$e 2ode. It re#ds:

Art. )<9,. A pro$ise to ;u' #nd se%% # deter$in#te t-in& .or # pri2e 2ert#in is re2ipro2#%%'
de$#nd#;%e.

An #22epted uni%#ter#% pro$ise to ;u' or to se%% # deter$in#te t-in& .or # pri2e 2ert#in is
;indin& upon t-e pro$issor i. t-e pro$ise is supported ;' # 2onsider#tion distin2t .ro$ t-e pri2e.


T-e 2#se o. Coronel v. Court of Appeals
>
3>4 is i%%u$in#tin& #nd eBp%#ins t-e distin2tion
;et/een # 2ondition#% 2ontr#2t o. s#%e under Arti2%e )<8> o. t-e Civi% Code #nd # ;i%#ter#%
2ontr#2t to se%% under Arti2%e )<9, o. t-e s#$e 2ode:

7
8
A 2ontr#2t to se%% $#' t-us ;e de.ined #s # ;i%#ter#% 2ontr#2t /-ere;' t-e prospe2tive
se%%er, /-i%e eBpress%' reservin& t-e o/ners-ip o. t-e su;Ce2t propert' despite de%iver' t-ereo. to
t-e prospe2tive ;u'er, ;inds -i$se%. to se%% t-e s#id propert' eB2%usive%' to t-e prospe2tive ;u'er
upon .u%.i%%$ent o. t-e 2ondition #&reed upon, t-#t is, .u%% p#'$ent o. t-e pur2-#se pri2e.

A 2ontr#2t to se%% #s de.ined -erein#;ove, $#' not even ;e 2onsidered #s # 2ondition#%
2ontr#2t o. s#%e /-ere t-e se%%er $#' %i0e/ise reserve tit%e to t-e propert' su;Ce2t o. t-e s#%e unti%
t-e .u%.i%%$ent o. # suspensive 2ondition, ;e2#use in # 2ondition#% 2ontr#2t o. s#%e, t-e .irst
e%e$ent o. 2onsent is present, #%t-ou&- it is 2onditioned upon t-e -#ppenin& o. # 2ontin&ent
event /-i2- $#' or $#' not o22ur. I. t-e suspensive 2ondition is not .u%.i%%ed, t-e per.e2tion o.
t-e 2ontr#2t o. s#%e is 2o$p%ete%' #;#ted. Ho/ever, i. t-e suspensive 2ondition is .u%.i%%ed, t-e
2ontr#2t o. s#%e is t-ere;' per.e2ted, su2- t-#t i. t-ere -#d #%re#d' ;een previous de%iver' o. t-e
propert' su;Ce2t o. t-e s#%e to t-e ;u'er, o/ners-ip t-ereto #uto$#ti2#%%' tr#ns.ers to t-e ;u'er
;' oper#tion o. %#/ /it-out #n' .urt-er #2t -#vin& to ;e per.or$ed ;' t-e se%%er.

In # 2ontr#2t to se%%, upon t-e .u%.i%%$ent o. t-e suspensive 2ondition /-i2- is t-e .u%%
p#'$ent o. t-e pur2-#se pri2e, o/ners-ip /i%% not #uto$#ti2#%%' tr#ns.er to t-e ;u'er #%t-ou&-
t-e propert' $#' -#ve ;een previous%' de%ivered to -i$. T-e prospe2tive se%%er sti%% -#s to
2onve' tit%e to t-e prospe2tive ;u'er ;' enterin& into # 2ontr#2t o. #;so%ute s#%e.

It is essenti#% to distin&uis- ;et/een # 2ontr#2t to se%% #nd # 2ondition#% 2ontr#2t o. s#%e
spe2i#%%' in 2#ses /-ere t-e su;Ce2t propert' is so%d ;' t-e o/ner not to t-e p#rt' t-e se%%er
2ontr#2ted /it-, ;ut to # t-ird person, #s in t-e 2#se #t ;en2-. In # 2ontr#2t to se%%, t-ere ;ein& no
previous s#%e o. t-e propert', # t-ird person ;u'in& su2- propert' despite t-e .u%.i%%$ent o. t-e
suspensive 2ondition su2- #s t-e .u%% p#'$ent o. t-e pur2-#se pri2e, .or inst#n2e, 2#nnot ;e
dee$ed # ;u'er in ;#d .#it- #nd t-e prospe2tive ;u'er 2#nnot see0 t-e re%ie. o. re2onve'#n2e o.
t-e propert'. T-ere is no dou;%e s#%e in su2- 2#se. Tit%e to t-e propert' /i%% tr#ns.er to t-e ;u'er
#.ter re&istr#tion ;e2#use t-ere is no de.e2t in t-e o/ner-se%%erIs tit%e per se, ;ut t-e %#tter, o.
2ourse, $#' ;e sued .or d#$#&es ;' t-e intendin& ;u'er.

In # 2ondition#% 2ontr#2t o. s#%e, -o/ever, upon t-e .u%.i%%$ent o. t-e suspensive
2ondition, t-e s#%e ;e2o$es #;so%ute #nd t-is /i%% de.inite%' #..e2t t-e se%%erIs tit%e t-ereto. In
.#2t, i. t-ere -#d ;een previous de%iver' o. t-e su;Ce2t propert', t-e se%%erIs o/ners-ip or tit%e to
t-e propert' is #uto$#ti2#%%' tr#ns.erred to t-e ;u'er su2- t-#t, t-e se%%er /i%% no %on&er -#ve #n'
tit%e to tr#ns.er to #n' t-ird person. App%'in& Arti2%e )8<< o. t-e Civi% Code, su2- se2ond ;u'er
o. t-e propert' /-o $#' -#ve -#d #2tu#% or 2onstru2tive 0no/%ed&e o. su2- de.e2t in t-e se%%erIs
tit%e, or #t %e#st /#s 2-#r&ed /it- t-e o;%i&#tion to dis2over su2- de.e2t, 2#nnot ;e # re&istr#nt in
&ood .#it-. Su2- se2ond ;u'er 2#nnot de.e#t t-e .irst ;u'erIs tit%e. In 2#se # tit%e is issued to t-e
se2ond ;u'er, t-e .irst ;u'er $#' see0 re2onve'#n2e o. t-e propert' su;Ce2t o. t-e s#%e.


In t-e inst#nt 2#se, -o/ever, t-e p#rties eBe2uted # etter o. Intent, /-i2- is neit-er #
2ontr#2t to se%% nor # 2ondition#% 2ontr#2t o. s#%e. As .ound ;' t-e RTC, #nd up-e%d ;' t-e CA,
t-e etter o. Intent /#s eBe2uted to #22o$$od#te "?C"PAI #nd .#2i%it#te its %o#n #pp%i2#tion
/it- NH?=. T-e <
t-
#nd 8
t-
p#r#&r#p-s o. t-e re2it#%s 5/-ere#s 2%#uses6 spe2i.i2#%%' provide:

DHEREAS, it #ppe#rs t-#t "?C"PAI /i%% u%ti$#te%' #pp%' /it- t-e Ho$e ?ort&#&e
#nd =in#n2e Corpor#tion .or # %o#n to p#' t-e #2Auisition pri2e o. s#id %#ndE

DHEREAS, #s one o. t-e steps reAuired ;' t-e &overn$ent #ut-orities to initi#te
pro2eedin&s is to re2eive # .or$#% $#ni.est#tion o. Intent to Se%% .ro$ 3S=C4.


No/-ere in t-e etter o. Intent does it st#te t-#t S=C re%inAuis-es its tit%e over t-e su;Ce2t
propert', su;Ce2t on%' to t-e 2ondition o. 2o$p%ete p#'$ent o. t-e pur2-#se pri2eE nor, #t t-e
%e#st, t-#t S=C, #%t-ou&- eBpress%' ret#inin& o/ners-ip t-ereo., ;inds itse%. to se%% t-e propert'
eB2%usive%' to "?C"PAI. T-e etter o. Intent to :u' #nd Se%% is Cust t-#t K # $#ni.est#tion o.
S=CIs intention to se%% t-e propert' #nd "?C"PAIIs intention to #2Auire t-e s#$e. T-is is Auite
o;vious .ro$ t-e re.eren2e to t-e eBe2ution o. #n A;so%ute 1eed o. S#%e in p#r#&r#p- t-ree
,
3,4
o. t-e etter o. Intent.

As t-e CA did, /e Auote /it- .#vor t-e RTCIs disAuisition:

T-e 1e2ision in t-is 2#se -in&es on t-e %e&#% interpret#tion o. t-e A&ree$ent entered into
;' S=C #nd "?C"PAI deno$in#ted #s Getter o. Intent to Se%% ;' #ndo/ner #nd etter o.
Intent to Pur2-#se ;' "nited ?us%i$ #nd C-risti#n "r;#n Poor Asso2i#tion, In2.H

:%#20Is #/ 1i2tion#r' s#'s t-#t # etter o. Intent is 2usto$#ri%' e$p%o'ed to redu2e to
/ritin& # pre%i$in#r' underst#ndin& o. p#rties /-o intend to enter into 2ontr#2t. It is # p-r#se
ordin#ri%' used to denote # ;rie. $e$or#ndu$ o. t-e pre%i$in#r' underst#ndin& o. p#rties /-o
intend to enter into # 2ontr#2t. It is # /ritten st#te$ent eBpressin& t-e intention o. t-e p#rties to
enter into # .or$#% #&ree$ent espe2i#%%' # ;usiness #rr#n&e$ent or tr#ns#2tion.

In t-eir A&ree$ent, S=C eBpress%' de2%#red its GintentionH to se%% #nd "?C"PAI
eBpress%' de2%#red its GintentionH to ;u' su;Ce2t propert'. An intention is # $ere ide#, &o#%, or
p%#n. It si$p%' si&ni.ies # 2ourse o. #2tion t-#t one proposes to .o%%o/. It si$p%' indi2#tes /-#t
one proposes to do or #22o$p%is-. A $ere GintentionH 2#nnot &ive rise to #n o;%i&#tion to &ive, to
do or not to do 5Arti2%e ))87, Civi% Code6. One 2#nnot ;e ;ound ;' /-#t -e proposes or p%#ns to
do or #22o$p%is-. A etter o. Intent is not # 2ontr#2t ;et/een t-e p#rties t-ereto ;e2#use it does
not ;ind one p#rt', /it- respe2t to t-e ot-er, to &ive so$et-in&, or to render so$e servi2e 5Art.
)(+8, Civi% Code6.

B B B B B B B B B

9
T-e etter o. IntentLA&ree$ent ;et/een S=C #nd "?C"PAI is $ere%' # /ritten
pre%i$in#r' underst#ndin& o. t-e p#rties /-erein t-e' de2%#red t-eir intention to enter into #
2ontr#2t o. s#%e. It is su;Ce2t to t-e 2ondition t-#t "?C"PAI /i%% G#pp%' /it- t-e Ho$e
?ort&#&e #nd =in#n2e Corpor#tion .or # %o#n to p#' t-e #2Auisition pri2e o. s#id %#nd.H One o.
t-e reAuire$ents .or su2- %o#n is G# .or$#% $#ni.est#tion o. Intent to Se%%H .ro$ S=C. T-us, t-e
etter o. Intent to Se%% .e%% s-ort o. #n Go..erH 2onte$p%#ted in Arti2%e )(), o. t-e Civi% Code
;e2#use it is not # 2ert#in #nd de.inite propos#% to $#0e # 2ontr#2t ;ut $ere%' # de2%#r#tion o.
S=CIs intention to enter into # 2ontr#2t. "?C"PAIIs de2%#r#tion o. intention to ;u' is #%so not
2ert#in #nd de.inite #s it is su;Ce2t to t-e 2ondition t-#t "?C"PAI s-#%% ende#vor to r#ise .unds
to #2Auire su;Ce2t %#nd. T-e #22ept#n2e o. t-e o..er $ust ;e #;so%uteE it $ust ;e p%#in #nd
un2ondition#%. ?oreover, t-e etter o. IntentLA&ree$ent does not 2ont#in # pro$ise or
2o$$it$ent to enter into # 2ontr#2t o. s#%e #s it $ere%' de2%#red t-e intention o. t-e p#rties to
enter into # 2ontr#2t o. s#%e upon .u%.i%%$ent o. # 2ondition t-#t "?C"PAI 2ou%d se2ure # %o#n to
p#' .or t-e pri2e o. # %#nd.

T-e etter o. IntentLA&ree$ent is not #n Goption 2ontr#2tH ;e2#use #side .ro$ t-e .#2t
t-#t it is $ere%' # de2%#r#tion o. intention to se%% #nd to ;u' su;Ce2t to t-e 2ondition t-#t
"?C"PAI s-#%% r#ise t-e ne2ess#r' .unds to p#' t-e pri2e o. t-e %#nd, #nd does not 2ont#in #
;indin& pro$ise to se%% #nd ;u', it is not supported ;' # distin2t 2onsider#tion distin2t .ro$ t-e
pri2e o. t-e %#nd intended to ;e so%d #nd to ;e ;ou&-t B B B No option /#s &r#nted to "?C"PAI
under t-e etter o. IntentLA&ree$ent to ;u' su;Ce2t %#nd to t-e eB2%usion o. #%% ot-ers /it-in #
.iBed period nor /#s S=C ;ound under s#id A&ree$ent to Se%% eB2%usive%' to "?C"PAI on%' t-e
s#id %#nd /it-in t-e .iBed period.

Neit-er 2#n t-e etter o. IntentLA&ree$ent ;e 2onsidered # ;i%#ter#% re2ipro2#% 2ontr#2t to
se%% #nd to ;u' 2onte$p%#ted under Arti2%e )<9, o. t-e Civi% Code /-i2- is re2ipro2#%%'
de$#nd#;%e. T-e etter o. IntentLA&ree$ent does not 2ont#in # PRO?ISE to se%% #nd to ;u'
su;Ce2t propert'. T-ere /#s no pro$ise or 2o$$it$ent on t-e p#rt o. S=C to se%% su;Ce2t %#nd to
"?C"PAI, ;ut $ere%' # de2%#r#tion o. its intention to ;u' t-e %#nd, su;Ce2t to t-e 2ondition t-#t
"?C"PAI 2ou%d r#ise t-e ne2ess#r' .unds to #2Auire t-e s#$e #t t-e pri2e o. P)+8.++ per sAu#re
$eter B B B

D-i%e "?C"PAI su22eeded in r#isin& .unds to #2Auire # portion o. ot No. (++-A, it
.#i%ed to r#ise .unds to p#' .or ot No. (++-C. =ro$ O2to;er <, ),,) /-en t-e etter o. Intent
/#s si&ned to !une, ),,8, "?C"PAI -#d #;out t-ree 5(6 'e#rs #nd ei&-t 5>6 $ont-s /it-in
/-i2- to pursue its intention to ;u' su;Ce2t %#nd .ro$ S=C. Dit-in t-#t period, "?C"PAI -#d
#$p%e ti$e /it-in /-i2- to #2Auire ot No. (++-C, #s in .#2t it -#d #2Auired ot No. (++-A
/-i2- is $u2- ;i&&er t-#n ot No. (++-C #nd o22upied ;' $ore $e$;ers o. "?C"PAI. T-e
.#i%ure o. "?C"PAI to #2Auire ot No. (++-C ;e.ore it /#s so%d to :RYC-V 2#nnot ;e ;%#$ed
on S=C ;e2#use #%% t-#t "?C"PAI -#d to do /#s to r#ise .unds to p#' .or ot No. (++-C /-i2-
it did /it- respe2t to ot No. (++-A. S=C -#d not-in& to do /it- S=CIs uni%#ter#% #2tion t-rou&-
?rs. Antonin# Gr#2i#no to GpostponeH t-e pro2essin& o. t-e #2Auisition o. ot No. (++-C, /-i2-
it re.erred to #s P-#se II, unti% #.ter t-e p#'$ent to S=C o. t-e #2Auisition pri2e .or ot No. (++-
A or P-#se I B B B


DHERE=ORE, pre$ises 2onsidered, t-e petition is -ere;' DENIED. T-e 1e2ision o.
t-e Court o. Appe#%s in CA G.R. CV No. 7*889 #nd t-e Re&ion#% Tri#% Court in Civi% C#se No.
<795<8<<6 #re AFFIRMED. Costs #&#inst t-e petitioner.

SO ORDERED.