Page 49 - Obligations & Contracts Module 1-2

PERIOD FOR ACCEPTANCE:

1. stated fixed period in the offer

2. no stated fixed period:

a) offer is made to a person present – acceptance must be made immediately.

b) offer is made to a person absent – acceptance may be made within such time that,

under normal circumstances, an answer can be

received from him.

*OPTION:

An Option may be withdrawn anytime before acceptance is communicated but not when

supported by a consideration other than purchase price (e.g. option money).

Note: Ang Yu v. CA (1994) states that a unilateral promise to buy or sell, if not

supported by a distinct consideration, may be withdrawn but may not be done

whimsically or arbitrarily; the right of the grantee here is damages and not

specific performance; Equatorial v. Mayfair(264 SCRA 483) held that an option

clause in order to be valid and enforceable must indicate the definite price at

which the person granting the option is willing to sell, contract can be

enforced and not only damages; Paranaque Kings V CA (1997) states that right

of first refusal may be enforced by specific performance.