8/12/2019 2. Equatorial Realty Development vs Mayfair
Theater
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EQUATORIAL REALTY DEVELOPMENT, INC. & CARMELO
&BAUERMANN, INC. vs. MAYFAIR THEATER, INC.
G.R. No. 106063 November 21, 1996
FACTS:Carmelo entered into a contract with respondent for the
latter to lease !"R#$"N"% #&' ('C"N) %*""R of the two+store
b-ildin , sit-ated at C./. Recto ven-e,/anila, with a oor area of
1,610 s -are meters and #&' ('C"N) %*""R N)/' N$N' of the
two+store b-ildin , sit-ated at C./. Recto ven-e, /anila, with
a
oor area of 1 0 s -are meters.
#he contract is set for the ne4t 20 ears.
2 ears later, the parties entered into et another contract
involvin 5 !"R#$"N "% #&' ('C"N) %*""R of the two+store b-ildin
, sit-ated at C./. Recto ven-e,/anila, with a oor area of 1,610 s
-are meters and #&' ('C"N) %*""R N)/' N$N' of the two+store
b-ildin , sit-ated at C./. Recto ven-e, /anila, with a
oor area of 1 0 s -are meters.
(tip-lated in the contract was5 #hat if the *'(("R sho-ld desire
to sell the leasedpremises, the *'(('' shall be iven 30+da s
e4cl-sive option to p-rchase the same.
$n the event, however, that the leased premises is sold to
someone other than the*'(('', the *'(("R is bo-nd and obli ated, as
it hereb binds and obli ates itself,to stip-late in the )eed of
(ale hereof that the p-rchaser shall reco ni e this leaseand be
bo-nd b all the terms and conditions thereof.
(ometime in 1978, Carmelo thro- h /r. !ascal b a telephone call
told therespondent that it is contemplatin to sell the said propert
and that a certain oseraneta is willin to b- the same for
:(;1,200,000. $t also asan told the petitioner that it wo-ld
respond once a decision was made.
Respondent in its repl mentioned a stip-lated part of the
contract as to whenCarmelo wo-ld decide to sell the propert .
Carmelo did not repl .
%o-r ears later, on -l 30, 197?, Carmelo sold its entire C./.
Recto ven-e landand b-ildin , which incl-ded the leased premises
ho-sin the @/a4im@ and@/iramar@ theatres, to ' -atorial b virt-e of
a )eed of bsol-te (ale, for the total
s-m of !11,300,000.00./a fair instit-ted the action a -o for
speciAc performance and ann-lment of thesale of the leased premises
to ' -atorial.
Carmelo=s defense5 as special and aBrmative defense aD that it
had informed/a fair of its desire to sell the entire C./. Recto
ven-e propert and oEered thesame to /a fair, b-t the latter
answered that it was interested onl in b- in theareas -nder lease,
which was impossible since the propert was not a
8/12/2019 2. Equatorial Realty Development vs Mayfair
Theater
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EQUATORIAL REALTY DEVELOPMENT, INC., vs. MAYFAIRTHEATER,
INC.
LG.R. No. 133?79. November 21, 2001.M
FACTS:
/a fair #heater, $nc. was a lessee of portions of a b-ildin
owned b Carmelo Ia-ermann, $nc. #heir lease contracts of 20 ears 1.
which covered a
portion of the second oor and me anine of a two+store b-ildin
with abo-t1,610 s -are meters of oor area, which respondent -sed as
a movie ho-se
8/12/2019 2. Equatorial Realty Development vs Mayfair
Theater
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CIVIL LA#$ PROPERTY$ CIVIL FRUIT OF O#NERSHIP$ RENTALS . Q Rent
is acivil fr-it that belon s to the owner of the propert prod-cin
it b ri ht ofaccession. Conse -entl and ordinaril , the rentals
that fell d-e from the time of theperfection of the sale to
petitioner -ntil its rescission b Anal K-d ment sho-ldbelon to the
owner of the propert d-rin that period.
SALES$ O#NERSHIP OF THE THIN% SOLD IS TRANSFERRED, NOT
BYCONTRACT ALONE, BUT BY TRADITION OR DELIVERY . Q I a contract of
sale,Oone of the contractin parties obli ates himself to transfer
ownership of and todeliver a determinate thin and the other to pa
therefor a price certain in moneor its e -ivalent.P "wnership of
the thin sold is a real ri ht, which the b- erac -ires onl -pon
deliver of the thin to him Oin an of the wa s speciAed in
rticles 1897 to 1 01, or in an other manner si nif in an a
reement that thepossession is transferred from the vendor to the
vendee.P #his ri ht is transferred,not b contract alone, b-t b
tradition or deliver . Non n-dis pactis sed traditione
dominia rer-m transferant-r.
THERE IS DELIVERY #HEN THE THIN% SOLD IS PLACED UNDER THECONTROL
AND POSSESSION OF THE VENDEE. Q L#Mhere is said to be deliver ifand
when the thin sold Ois placed in the control and possession of the
vendee.P
#h-s, it has been held that while the e4ec-tion of a p-blic
instr-ment of sale isreco ni ed b law as e -ivalent to the deliver
of the thin sold, s-ch constr-ctiveor s mbolic deliver , bein merel
pres-mptive, is deemed ne ated b the fail-re of the vendee to
ta
