Practice question
The lessee advances money that is fully credited against rent for its own occupation. No other fact proves a separate option fee. Under the distinction discussed in PNOC, does that advance necessarily establish additional option consideration?
- No; a fully rent-offset payment does not by itself prove that distinct consideration
- Yes; every advance always buys an option
- Yes; timing alone makes consideration separate
- Yes; rent and option fees are always identical
- Yes; the landlord must disprove every possible gift
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.
Answer this question in flashcards to review your response and continue practicing.