CONCULADA vs.

CA (2001)
FACTS:
Petitioners Paciano Garcia, Jr. and Henrietta Borja with their six (6) siblings
were co-owners of two (2) parcels of land which they inherited from their parents.
Fronting the old public market of Jolo, said lands had a combined area of 2,962
square meters which are leased to 28 tenants. Petitioner decided to sell the said
lands and the occupants were given preferential rights to buy the portions they
occupy (right of first refusal). Private respondent, Wee, signified his interest to
purchase the lot where his store was built but failed to tender the required amount
of deposit within the given timeframe. The lands were then sold to petitioner Brigida
Conculada.
ISSUE:
1. Whether or not sale of the land to Conculada may be rescinded.
HELD:
Yes. The contract of sale between Garcia and Conculada is a rescissible
contract. The prevailing doctrine is that a contract of sale entered into in
violation of a right of first refusal of another person is rescissible. There is
no doubt that the appellants (herein defendants-appellees) have a legal right of first
refusal and that the defendants (herein-defendants-appellants) have a
corresponding obligation to respect such right, but defendants violated appellants
right when they refused or did not allow them to exercise such right.