In this case while it incorporated the pca cojuangco

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In this case, while it incorporated the PCA-Cojuangco Agreement by reference, Section 1 of P.D. 755 did not in any way reproduce the exact terms of the contract in the decree. Neither was a copy thereof attached to the decree when published. We cannot therefore, extend to the said Agreement the status of a law. Consequently, We join the Sandiganbayan in its holding that the PCA- Cojuangco Agreement shall be treated as an ordinary transaction between agreeing minds to be governed by contract law under the Civil Code. In PSJ-A, the Sandiganbayan struck down the PCA-Cojuangco Agreement as void for lack of consideration/cause as required under Article 1318, paragraph 3 in relation to Article 1409, paragraph 3 of the Civil Code. The Sandiganbayan found and so tagged the alleged cause for the agreement in question i.e., Cojuangco’s “personal and exclusive option to acquire the Option Shares,” as fictitious. A reading of the purchase agreement between Cojuangco and PCA, so the Sandiganbayan ruled, would show that Cojuangco was not the only seller; thus, the option was, as to him, neither personal nor exclusive as he claimed it to be. Moreover, as the Sandiganbayan deduced, that the option was inexistent on the day of execution of the PCA-Cojuangco Agreement as the Special Power of Attorney executed by Cojuangco in favor of now Senator Edgardo J. Angara, for the latter to sign the PC-ECJ Agreement, was dated May 25, 1975 while the PCA-Cojuangco Agreement was also signed on May 25, 1975. Thus, the Sandiganbayan believed that when the parties affixed their signatures on the second Agreement Cojuangcos’s option to purchase the FUB shares of stock did not yet exist. The Sandiganbayan further ruled that there was no justification in the Second Agreement for the compensation of Cojuangco of 14,400 shares, which it viewed as
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POLITICAL LAW CASE DIGESTS 75 exorbitant. Additionally, the Sandiganbayan ruled the PCA having a personality separate and distinct from that of FUB. As such, the Sandiganbayan concluded thath the PCA- Cojuangco Agreement was null and void. Correspondingly, the Sandiganbayan also ruled that the sequestered FUB (UCPB) shares of stock in the name of Cojuangco are conclusively owned by the Republic. After a circumspect study, the Court finds as inconclusive the evidence relied upon by Sandiganbayan to support its ruling that the PCA-Cojuangco Agreement is devoid of sufficient consideration. We shall explain. Rule 131, Section 3® of the Rules of Court states: Sec. 3. Disputable presumptions.- The following presumptions are satisfactory if uncontradicted, but may be contradicted and overcome by other evidence: (r) That tere was a sufficient consideration for a contract; The rule then is that the party who stands to profit from a declaration of the nullity of a contract on the ground of insufficient of consideration which would necessarily refer to one who asserts such nullity has the burden of overthrowing the presumption offered by the aforequoted Section 3(r). obviously then, the presumption
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  • Winter '15
  • Atty. Ignacio
  • Candide

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