Practice question
In Equatorial, did the integrated lease first-refusal clause require a separately paid option fee merely to be binding as that clause?
- No; the lease consideration supported the integrated stipulation.
- Yes; every lease first-refusal clause is necessarily void without a second payment.
- Only the buyer’s private preference controls.
- No lease can contain priority rights.
- The clause automatically transfers title on lease signing.
Legal references
- Civil Code Articles1306,1475,1482,1490-1492,1504,1522-1523 and1589-1590: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- Equatorial Realty v. Mayfair Theater, G.R.106063, November21,1996, EN BANC MAIN: https://lawphil.net/judjuris/juri1996/nov1996/gr_106063_1996.html
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