Philippine Bar review · Question

Practice question: Option Contract

Multiple Choice Hard Jurisprudence

Practice question

A lessee claims the lessor’s ordinary statutory right to retain qualifying improvements upon due payment is, without more, consideration for a purchase option. The clause does not identify it as option consideration and no separate valuable concession is proved. Under F.F. Cruz, is that assertion sufficient?
  1. No; restating the statutory right did not establish the required separate consideration
  2. Yes; any reference to improvements conclusively proves an option fee
  3. Yes; every right already supplied by law is a new bargain for every option
  4. Yes; the grantee need not prove anything
  5. Yes; the purchase price automatically becomes separate consideration

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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