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    PUP Vs CA

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    dollyccruz
    The National Development Corporation (NDC) owned a 10 hectare property that it leased to Firestone Ceramics for its ceramic manufacturing business under two 10-year lease agreements. The second lease agreement granted Firestone the right of first refusal to purchase the property if NDC decided to sell. However, NDC was ordered to transfer the entire property to the Polytechnic University of the Philippines (PUP) due to debt owed by NDC to the national government. Firestone sued to compel NDC to sell it the property. The court ruled that while the transfer from NDC to PUP constituted a valid sale, Firestone's right of first refusal took precedence so it must be given the opportunity to purchase the

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    PUP Vs CA

    Uploaded by

    dollyccruz
    932 views1 page
    The National Development Corporation (NDC) owned a 10 hectare property that it leased to Firestone Ceramics for its ceramic manufacturing business under two 10-year lease agreements. The second lease agreement granted Firestone the right of first refusal to purchase the property if NDC decided to sell. However, NDC was ordered to transfer the entire property to the Polytechnic University of the Philippines (PUP) due to debt owed by NDC to the national government. Firestone sued to compel NDC to sell it the property. The court ruled that while the transfer from NDC to PUP constituted a valid sale, Firestone's right of first refusal took precedence so it must be given the opportunity to purchase the

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    cases in sales

    Original Title

    5. PUP vs CA

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    The National Development Corporation (NDC) owned a 10 hectare property that it leased to Firestone Ceramics for its ceramic manufacturing business under two 10-year lease agreements. The second lease agreement granted Firestone the right of first refusal to purchase the property if NDC decided to sell. However, NDC was ordered to transfer the entire property to the Polytechnic University of the Philippines (PUP) due to debt owed by NDC to the national government. Firestone sued to compel NDC to sell it the property. The court ruled that while the transfer from NDC to PUP constituted a valid sale, Firestone's right of first refusal took precedence so it must be given the opportunity to purchase the

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    932 views1 page

    PUP Vs CA

    Uploaded by

    dollyccruz
    The National Development Corporation (NDC) owned a 10 hectare property that it leased to Firestone Ceramics for its ceramic manufacturing business under two 10-year lease agreements. The second lease agreement granted Firestone the right of first refusal to purchase the property if NDC decided to sell. However, NDC was ordered to transfer the entire property to the Polytechnic University of the Philippines (PUP) due to debt owed by NDC to the national government. Firestone sued to compel NDC to sell it the property. The court ruled that while the transfer from NDC to PUP constituted a valid sale, Firestone's right of first refusal took precedence so it must be given the opportunity to purchase the

    Copyright:

    © All Rights Reserved
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    of 1

    Polytechnic University of the Philippines vs Court of Appeals and Firestone Ceramics

    National Development Corporation vs Firestone Ceramics Inc.


    [GR No. 143513 and 143590. November 14, 2001]

    FACTS:

    Petitioner ​NDC (National Development Corp.) ​a GOCC owned & had in its disposal a 10 hectar property which is the NDC
    Compound.

    A portion of which was leased to private respondent ​FIRESTONE CORPORATION for ceramic manufacturing business. Both
    parties entered into a contract of lease for a term of 10 years renewable for another 10 years. Firestone built several warehouses
    and facilities therein.

    Prior to the expiration of the said lease contract, Firestone wrote NDC requesting for an extension of their lease agreement. Since
    business between NDC and FIRESTONE went smooth, the lease was twice renewed, this time conferring upon Firestone an
    express grant the ​first option to purchase the leased premise in the event that NDC decided to dispose and sell the
    properties​ including the lot. So Firestone now has the right of first refusal.

    Eventually though, a Memorandum Order No. 214 was issued by then President Corazon Aquino ordering the transfer of the
    whole NDC compound to the National Government. The order of conveyance would automatically result in the cancellation of
    NDC's total obligation in favor of the National Government. The memorandum order was in consideration of NDC’s P57M debt.

    And so, pursuant thereto, NDC had no choice but to transfer the property to Polytechnic University of the Philippines, anot​her
    GOCC, and in need of expansion.

    Firestone therefore instituted an action for specific performance to compel NDC to sell the leased property in its favor.

    ISSUE:

    Whether or not there is a valid sale between NDC and PUP.

    ​ UT...
    YES, B

    RULING:

    All three (3) essential elements of a valid sale, without which there can be no sale, were attendant in the "disposition" and "transfer"
    of the property from NDC to PUP - consent of the parties, determinate subject matter, and consideration therefor.

    1. ​consent ​is manifested by the Memo Order No. 214;


    2. the ​subject matter ​was the property subject of the dispute;
    3. the cancellation of liabilities constituted ​consideration.

    HOWEVER,​ only when Firestone fails to exercise such right may the sale to PUP proceed.

    WHEREFORE, ​the petitions in G.R. No. 143513 and G.R. No. 143590 are DENIED. Inasmuch as the first
    contract of lease fixed the area of the leased premises at 2.90118 hectares while the second contract placed it
    at 2.60 hectares, let a ground survey of the leased premises be immediately conducted by a duly licensed,
    registered surveyor at the expense of private respondent FIRESTONE CERAMICS, INC., within two (2)
    ​ rivate respondent FIRESTONE CERAMICS,
    months from finality of the judgment in this case. Thereafter, p
    INC., shall have six (6) months from receipt of the approved survey within which to exercise its right to
    purchase the leased property at P1,500.00 per square meter, and petitioner Polytechnic University of
    the Philippines is ordered to reconvey the property to FIRESTONE CERAMICS, INC., in the exercise of
    its right of first refusal upon payment of the purchase price thereof.

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