Practice question
A clause called a first option identifies the lot, fixes the price, states payment terms, and grants the holder a purchase choice during a specified period without awaiting any future decision by the owner to sell. Separate consideration is independently proved. Which characterization follows F.F. Cruz?
- A purchase option rather than a mere right of first refusal
- Necessarily only first refusal because the word first appears
- An automatic conveyance of title without exercise
- A donation because a price is fixed
- A mortgage solely because payment terms exist
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1324,1479.
- PNOC v Keppel Philippines Holdings GR202050 July25,2016 MAIN: https://lawphil.net/judjuris/juri2016/jul2016/gr_202050_2016.html Separate consideration and burden of proof.
- F.F. Cruz v NMC Container Lines GR270449 August11,2025 MAIN: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70224 Option versus first refusal; consideration.
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