This case has been cited 2 times or more.
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2009-01-20 |
CHICO-NAZARIO, J. |
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| The consideration is "the why of the contracts, the essential reason which moves the contracting parties to enter into the contract." This definition illustrates that the consideration contemplated to support an option contract need not be monetary. Actual cash need not be exchanged for the option. However, by the very nature of an option contract,as defined in Article 1479, the same is an onerous contract for which the consideration must be something of value, although its kind may vary.[26] | |||||
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2006-08-31 |
CALLEJO, SR., J. |
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| The optionee or promisee is burdened to prove such consideration for the option. The consideration for the option is not presumed. In Villamor v. Court of Appeals,[92] the Court ruled that consideration is "the why of the contract, the essential reason which moves the contracting parties to enter into the contract."[93] The consideration for a contract, including an option, need not be money or anything of monetary value but may consist of either a benefit or a detriment to the promisor.[94] There is sufficient consideration for a promise if there is any benefit to the promisee or any detriment to the promisor. A benefit should not necessarily accrue to the promisee if a detriment to the promisor is present; and there is consideration if the promisee does anything legal which he is not bound to do or refrain from doing anything which he has a right to do, whether or not there is any actual loan or detriment to him or actual benefit to the promisor.[95] It is sufficient that something valuable flows from the person to whom it is made, or that he suffers some prejudice or inconvenience, and that the promise is the inducement to the transaction. Indeed, there is a consideration if the promisee, in return for the promise, does anything legal which he is not bound to do, or refrains from doing anything which he has a right to do, whether there is any actual loss or detriment to him or actual benefit to the promisor or not.[96] | |||||