THE Cebu City Government has no plans of reviving its contract with Filinvest Land Inc. (FLI) after the latter rescinded its purchase of a 19.2-hectare lot at the South Road Properties (SRP).
In its legal opinion, the Cebu City Legal Office led by Rey Gealon opposes FLI’s proposal to revive its contract with the City.
The developer did not pay the initial installment on Aug. 1, 2017 after it canceled its contract on the behest of then mayor Tomas Osmeña.
Gealon said Tristan Las Marias, FLI’s then senior vice president for Visayas and Mindanao, made the announcement to rescind the contract during a press conference in 2016, saying the City failed to turn over the lot title within six months from the signing of the sale contract.
“Filinvest has now had a change of heart and is attempting to undermine the legal effects of their rescission of the sale,” said Gealon. “Rescission may be effected by both parties by mutual agreement or unilaterally by one of them declaring a rescission of contract without the consent of the other, if a legally sufficient ground exists or if a decree of rescission is applied for before the courts,” he added.
Even if FLI consign its last payment for the property to the court, there is no longer a contract to agree and commit to, Gealon said.
“The sale being inexistent, what remains is only the obligation of the City to return the payment to Filinvest,” he said.
The Cebu City government still has an ongoing deal with the consortium of SM Prime Holdings Inc. and Ayala Land, which acquired a 26-hectare property at the SRP.
The City has already withdrawn the P3.6 billion payment from the consortium, which was consigned to the court in 2017 and 2018. (FromPAC OF SUPERBALITA CEBU / JKV )