YUVIENCO V. DACUYCUY (May 27, 1981)

FACTS:

Petitioners own a property in Tacloban City which they intend to sell for 6.5M. They gave the respondents the right to purchase the property nut only until July 31, 1978. Respondents replied that they agree to buy the property and they will negotiate for details. Petitioner sent another telegram informing respondents that their proposal is accepted and a contract will be prepared.

Lawyer of defendant, Mr.Gamboa, arrived bringing a contact with an altered mode of payment which says that the balance payment should be paid withing 30 days instead of the former 90 days. (Otiginal terms: 2M payment upon execution. 4.5M after 90 days)

ISSUE:

WON there was already a perfected contract of sale between the parties.

HELD:

There was no perfected contract of sale yet because both parties are still under negotiation and hence, no meeting of the minds. Mr.Gamboa even went to the respondents to negotiate for the sale. Even though there was an agreement on the terms of payment, there was no absolute acceptance because respondents still insisted on further details.

With regard to the alleged violation of terms of payment, there was no written document to prove that the respondents agreed to pay not in cash but in installment. In sale of real property, payment of installment must be in requisite of a note under the statute of frauds.