2014 (Civil Law) Bar Exam Questions: Question 8

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VIII.

Tess leased her 1,500 sq. m. lot in Antipolo City to Ruth for a period of three (3) years, from January 2010 to February 2013.

On March 19, 2011, Tess sent a letter to Ruth, part of which reads as follows:

“I am offering you to buy the property you are presently leasing at P5,000.00 per sq. m. or for a total of P7,500,000.00. You can pay the contract price by installment for two (2) years without interest.

I will give you a period of one (1) year from receipt of this letter to decide whether you will buy the property.”

After the expiration of the lease contract, Tess sold the property to her niece for a total consideration of P4 million.

Ruth filed a complaint for the annulment of the sale, reconveyance and damages against Tess and her niece. Ruth alleged that the sale of the leased property violated her right to buy under the principle of right of first refusal.

Is the allegation of Ruth tenable? (4%)

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