ANTONIO M. BARRETTO, plaintiff-appellee, vs. JOSE SANTA MARINA, defendantappellant. December , !"!

# FACTS: T$e %a Ins&lar ci'ar and ci'arette fact(r) is a *(int acc(&nt ass(ciati(n +it$ a n(minal capital (f ,-./,000, t$e plaintiff1s s$are is , 0,000, (r 23!4# (f t$e +$(le. T$e plaintiff1s att(rne)s +r(te t$e defendant1s l(cal representative a letter (fferin' t( sell plaintiff1s s$are in t$e fact(r). T$e res&lt (f t$e c(rresp(ndence bet+een t$e parties and t$eir representatives +as t$at E5$ibit 6 +as d&l) e5ec&ted (n Ma) #, !"!0. In acc(rdance +it$ t$e terms (f t$is e5$ibit a c(mmittee (f appraisers +as app(inted t( ascertain and fi5 t$e act&al val&e (f %a Ins&lar. T$e c(mmittee rendered its rep(rt (n N(vember !2, !"!0, fi5in' t$e net val&e at ,2,2 -,!"2.22. S&bse7&entl) t( t$e e5ec&ti(n (f E5$ibit J, demand +as made b) t$e plaintiff &p(n t$e defendant f(r $is s$are (f t$e pr(fits fr(m J&ne #0, !"0", t( N(vember and t$ere&p(n t$is acti(n +as instit&ted t( rec(ver said pr(fits. T$e plaintiff ar'&ed t$at if t$e a'reement (f Ma) #, !"!0, +as a perfected sale $e cann(t rec(ver an) pr(fits after t$at date8 +$ile (n t$e (t$er $and t$e defendant c(ncedes t$at if said a'reement +as (nl) a pr(mise t( sell in t$e f&t&re it, standin' al(ne, +(&ld n(t prevent rec(ver) in t$is acti(n. ISSUE9 :$et$er t$e a'reement made b) t$e parties (n Ma) #, !"!0 +as a perfected c(ntract (f sale. HELD: ;ES, it +as a perfected c(ntract (f sale. Article 1450 of the Civil Code reads: <T$e sale s$all be perfected bet+een vend(r and vendee and s$all be bindin' (n b(t$ (f t$em, if t$e) $ave a'reed &p(n t$e t$in' +$ic$ is t$e (b*ect (f t$e c(ntract and &p(n t$e price, even +$en neit$er $as been delivered.< T$is is s&pplemented b) Article 1447 of the Code +$ic$ reads as f(ll(+s9 <In (rder t$at t$e price ma) be c(nsidered fi5ed, it s$all be s&fficient t$at it be fi5ed +it$ re'ard t( an(t$er , !"!0. T$is demand +as ref&sed

determine t$in' als( specific, (r t$at t$e determinati(n (f t$e same be left t( t$e *&d'ment (f a specified pers(n.< T$e c(ntract (f Ma) #, !"!0, pr(vides t$at9<:$ereas t$e respective c(ntractin' parties $ave a'reed, t$e (ne t( sell and t$e (t$er t( b&) t$e +$(le (f t$e ri'$t, title and interest (f t$e said Ant(ni( Maria Barrett( in and t( t$e said *(int acc(&nt ass(ciati(n, incl&din' n(t (nl) t$e individ&al participati(n (f t$e said part) (f t$e sec(nd part standin' (n t$e b((=s (f t$e ass(ciati(n in t$e name (f Ant(ni( M. Barrett(, b&t als( (ne-$alf (f t$e s$are in t$e b&siness +$ic$ stands (n t$e b((=s in t$e name (f Barrett( > ?(mpan) c(nstit&tin' a t(tal n(minal s$are (f ,/2,400 ,$ilippine c&rrenc) in t$e t(tal n(minal capital (f ,-./,000 ,$ilippine c&rrenc)@ U der article 1450! s"#ra there are t$o i dis#e sa%le re&"isites i a #erfected sale: '1( There )"st %e a a*ree)e t "#o the thi *s $hich is the o%+ect of the co tract, a d '-( the co tracti * #arties )"st a*ree "#o the #rice. The o%+ect of the co tract i the case at %ar $as the $hole of the #lai tiff/s ri*ht! title! a d i terest i La I s"lar. T$is +$(le +as 23!4# (f t$e entire net val&e (f t$e b&siness. T$e parties a'reed t$at t$e price s$(&ld be 23!4# (f t$e t(tal net val&e. T$e fi5in' (f s&c$ net val&e +as &nreservedl) left t( t$e *&d'ment (f t$e appraisers. As to the thi * a d the #rice the )i ds of the co tracti * #arties )et! a d all &"estio s relati * thereto $ere settled. 0othi * $as left " fi ished i so far as the co tracti * #arties $ere co cer ed. 0either #art1 co"ld $ithdra$ fro) the co tract $itho"t the co se t of the other. The res"lt is that the t$o esse tial re&"isites ecessar1 to co stit"te a #erfected sale $ere #rese t. :e find t$at t$e parties did n(t (nl) a'ree <t$e (ne t( sell and t$e (t$er t( b&)< and t$at <(ne +ill immediatel) sell and t$e (t$er +ill immediatel) b&)< t$e +$(le (f t$e plaintiff1s interest b&t t$at t$e) +ere &nable t( a'ree <as t( t$e tr&e present val&e (f t$e said interest8< t$e) did a'ree, $(+ever, &p(n t$e met$(d (f fi5in' and determinin' s&c$ val&e b) app(intin' appraisers f(r t$is p&rp(se. It +as t$e d&t) (f t$e appraisers t( $ear t$e respective claims (f t$e (ne and t$e (t$er part) relative t( t$e val&e and assets (f t$e b&siness, <and in acc(rdance +it$ t$e pr((f add&ced relative t( said val&es t( fi5 and determine t$e same f(r t$e p&rp(ses (f t$e p&rc$ase and sale ab(ve menti(ned.< T$e) did n(t sa) f(r t$e p&rp(se (f a sale t( be made in t$e f&t&re. Is t$e lan'&a'e, <f(r t$e p&rp(ses (f t$e p&rc$ase and sale ab(ve menti(ned< an) t$e less

si'nificant (r c(ntr(llin' t$an t$at relied &p(n b) t$e plaintiff f(&nd in t$e first and fift$ para'rap$A :$en t$e parties &sed t$is lan'&a'e t$e) $ad in mind t$e p&rc$ase and sale +$ic$ t$e) $ad *&st made. Acc(rdin' t( t$e (rdinar) and +ell-&nderst((d &se (f t$e +(rds <p&rc$ase< and <sale< t$e) mean, in t$e absence (f an) e5pressi(n t( limit t$eir si'nificance, a transm&tati(n (f pr(pert) fr(m (ne part) t( an(t$er in c(nsiderati(n (f s(me price (r rec(mpense in val&e8 a transmissi(n (f pr(pert) b) a v(l&ntar) act (r a'reement, f(&nded (n a val&able c(nsiderati(n8 divestin' t$e title (&t (f t$e vend(r and vestin' it in t$e vendee. A'ain, n(t (nl) +as t$e title (f t$e plaintiff1s interest vested in t$e defendant (n t$e e5ec&ti(n (f t$e c(ntract (f Ma) # b&t t$e p(ssessi(n (f t$at interest +as als( t$en transferred t( t$e defendant. BArt. !2. , ?ivil ?(de8 C) ,ia(c( vs. McMic=in', !0 ,$il. Rep., -..D