Collazo v. Conesa Renovales

70 P.R. 144
CourtSupreme Court of Puerto Rico
DecidedJune 24, 1949
DocketNo. 9940
StatusPublished

This text of 70 P.R. 144 (Collazo v. Conesa Renovales) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collazo v. Conesa Renovales, 70 P.R. 144 (prsupreme 1949).

Opinion

Mr. Justice Marrero

delivered the opinion of the Court.

The fifth clause of the lease executed on March 14, 1945, by Julio M. Conesa Renovales and his wife Gladys Braun, as parties of the first part, in favor of the spouses Jorge R. Co-llazo and Flor de María Quinones de Collazo, as parties of the second part, textually copied reads as follows:

“It is expressly agreed between the parties that while the present lease is in force, the lessees shall be entitled to acquire the property leased for the price of $8,500 (house and lots).— It is likewise agreed that the lessors shall insure against fire the building located on the property marked with letter ‘A’, for a reasonable sum and if the insurance premium, due to the nature of the business established thereon be greater than the usual one, the difference shall be paid by the lessees. Should the lessors have the intention of selling the leased property to another person for a sum in excess of the $8,500 fixed above, as set forth, they shall notify in writing to the lessees by registered mail, the offer made to them, the lessees being bound to decide whether or [146]*146not they purchase the property leased for the said sum of $8,500, in the manner set forth above, during the term of thirty days, from the date of receipt of the notice, which decision shall be set forth by registered letter addressed to the owner. Should the said thirty days to accept the offer to sell for $8,500 as set forth above elapse without the lessees accepting it, the owner and/or lessors shall be free to sell the property leased for the price agreed with the person making the offer.”

Relying on that clause, Collazo and his wife filed in the District Court of Ponce a complaint wherein, after describing the real property, the subject matter of the lease,1 and after fully copying the fifth clause mentioned above, alleged that in spite of the agreement and of their having demanded the defendants on repeated occasions to execute the corresponding deed of sale of the described properties, for the agreed price of $8,500, and in spite of their having been willing to forthwith pay the said sum to the defendants, all their efforts had been unsuccessful.

The defendants answered denying some facts and raising questions of law and certain special defenses. After trial was held, the lower court rendered judgment sustaining the complaint in its entirety and ordering the defendants, in accordance with the prayer of the complaint, to execute the corresponding deed of conveyance in favor of the plaintiffs within the term of five days, for the price of $8,500, free from any lien or encumbrance; and that if the defendants failed to do so, the marshal would do so in their name, with costs, plus the sum of $1,000 as attorney’s fees.

On appeal, the defendants assign nine errors to the lower court, the first two being that said court erred in overruling the defense that the complaint did not state facts sufficient to constitute a cause of action and in considering that the alleged promise to sell did not lack consideration or price. [147]*147Such errors are nonexistent. The complaint, such as it is drafted, states a clear cause of action in favor of the plaintiffs and against the defendants. It conclusively shows that in the lease executed by the defendants in favor of the plaintiffs, the former made to the latter a promise to sell the properties involved therein, and that the latter accepted such promise and are in a position to fulfill’ the contract, the defendants having refused to do so.

Pursuant to § 1340 of the Civil Code, 1930 ed., “A promise to sell or buy, there being an agreement as to the thing and price, gives a right to the contracting parties to mutually demand the fulfilment of the contract.” Such promise to sell plainly exists, and also the agreement of both parties as to the thing and as to the price. Under those circumstances and pursuant to the Section cited above, once the promise is accepted, the contracting parties are entitled to mutually demand the performance of the contract. The defendants argue, however, that, the contract is not enforceable because .it lacks consideration. In the instant case the lease itself constitutes a good and sufficient consideration for the existence of the contract of promise to sell. Furthermore, the promise to sell contained in the fifth clause of the contract is'nothing more than an option granted by the lessors to the lessees. Ossorio y Gallardo defines said contract thus:

“It is a contract by virtue of which the owner of a thing or right grants to another for a fixed term and under certain conditions the exclusive power to acquire or convey it to a third person.” (Enciclopedia Jurídica Española by Francisco Seix, Vol. 26, p. 41.)

Under the Civil Code the contract of option is fully valid and enforceable. In this connnection the learned textwriter José María Manresa y Navarro, in his Comentarios al Código Civil Español, Vol. X, 4th. ed., 1931, p. 61, construing § 1451 of the Spanish Civil Code, the context of which is identical to <S 1340 of our Code, expresses himself thus:

[148]*148“Of course it is noted that the promise may be unilateral or bilateral. The unilateral promise in turn is divided into two: promise to sell and promise to buy. The bilateral promise, of course is mutual, that is, to purchase and to sell.
“a) Unilateral Promise. This promise may be accepted or not.
“The nonaccepted unilateral promise, whether to purchase or to sell, does not produce any considerable legal effects whatsoever: this is the case of the so-called offer (policitación). Of course, this is not the case mentioned in § 1451 of the Code.
“It is from the accepted unilateral promise, whether to purchase or to sell, that legal effects spring. A promises to sell to B a property for a certain price; B accepts the promise. This is a clear case of an accepted promise to sell. Who are bound and to what, from the time the promise is accepted ? . .' . What has B actually accepted in the above example? The answer is clear: B has accepted the promise, not the fact of the sale with all its consequences. A has voluntarily contracted the obligation to sell to B, if B purchases; B has accepted this obligation; A was free to promise or not to promise, but he promised and his promise passed to a particular person, who accepted. The binding legal obligation was established, B being the pretender and A the obligee . . . This and none other is, in our judgment, the true scope of the unilateral promise to sell merely accepted.
“At first blush it may perhaps seem anomalous that the enforceability of the purchase and sale involved in the promise should remain at the free will of only one of the parties; but, looking into the process creating this legal situation, there is nothing in it that contradicts the fundamental principles of contract, since it has evolved within an atmosphere of the broadest individual freedom. When the act develops from a promise to the true contract of sale because the person to whom the promise was made decides to purchase, then in nowise can it be stated that the enforceability of the contract is at the free will of one of the parties and it is clear that such is the time that must be looked into in order to determine whether the defect which many seek to find in our views exists or not.”

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Bluebook (online)
70 P.R. 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collazo-v-conesa-renovales-prsupreme-1949.