ISSUE: Whether the Contract of Sale between Equatorial and Carmelo is valid. HELD

Whether the Contract of Sale between Equatorial and Carmelo is valid.

The Court hold that no option to purchase has been granted to Mayfair under the said lease contracts. That the contractual grant given is the right of first refusal to Mayfair. What Carmelo

+

+and Mayfair agreed to, by executing the two lease contracts, was that Mayfair will have the right of first refusal in the event Carmelo sells the leased premises. Carmelo violated such right when without prior notice to Mayfair, the entire property was sold to Equatorial.