LEOQUINCO vs. THE POSTAL SAVINGS BANK - G.R. No. L-23630

TIBURCIO LEOQUINCO vs. THE POSTAL SAVINGS BANK, ET AL.

G.R. No. L-23630

August 25, 1925

            Plaintiff alleged that he was the highest bidder at a public auction held by the defendants on for the sale of a piece or parcel of land belonging to the Bank. In Resolution No. 31 of the board of directors of the Bank, the sale of said property at public auction was authorized, as well as in the public notice announcing said sale. The board of directors have expressly reserved to themselves the right to reject any and all bids. A letter to the defendants was sent advising that the plaintiff was ready to tender payment for the land as soon as the deed of sale of the same in his favor is executed and delivered by the defendants. The defendants refused to execute the deed in spite of requests made therefor by him. Plaintiff prayed that said defendants be ordered to execute and deliver the deed of sale of said land in his favor, and to pay him damages and the costs. The defendants admitted the allegations of the complaint, except the conclusions of law set forth and the damages alleged to have been suffered by plaintiff. As a special defense, the defendants alleged that in Resolution No. 31 of the board of directors of the Postal Savings Bank, the defendants expressly reserved to themselves "the right to reject any and all bids," and that they never accepted the bid or offer of the plaintiff. The defendants prayed for relief from the complaint, with costs against the plaintiff.

ISSUE:

Whether or not defendants may refuse to execute the deed as it is expressed in Resolution No. 31 of the board of directors of the Postal Savings Bank, that the defendants has reserved to themselves "the right to reject any and all bids,"

HELD:

Yes. The plaintiff has no ground of action to compel defendants to execute a deed of sale of the land in his favor, nor to compel them to accept his bid or offer. "The owner of property offered for sale at auction has the right to prescribe the manner, conditions and terms of sale, and where these are reasonable and are made known to the buyer, they are binding upon him, and he cannot acquire a title in opposition to them, and against the consent of the owner. The owner of property offered for sale either at public or private auction has the right to prescribe the manner, conditions and terms of such sale. He may provide that all of the purchase price shall be paid at the time of the sale or any portion thereof, or that time will be given for the payment. The conditions of a public sale announced by an auctioneer or the owner of the property at the time and place of the sale, are binding upon a purchaser, whether he knew them or not.