Mr. Apropos Milano

September 24, 1982 Mr. Apropos Milano c/o National Steel Corporation Suarez, Iligan City Sir : This has reference to your letter, dated August 14, 1982, reiterating therein your complaint against BANCOM REALTY DEVELOPMENT CORPORATION regarding the agreement executed with the latter for the construction of your house at Tenejero Subdivision, Patag, Cagayan de Oro City. LexLib You stated in your letter that Social Security System appraised/approved your housing loan for a two-bedroom house, for P42,900.00. Your original contract with BANCOM, dated May 2, 1979, for the construction of your house, was P49,400.00. However, on June 19, 1979 when said house was completed and turned over to you for occupancy, you were made to sign a new contract for the same house for a higher contract price of P62,000.00, the escalation in price purportedly due to current increase in price of construction materials. In your eagerness to have a house of your own, you signed the new contract allegedly under protest. As of January 17, 1981, it appears that you have remitted the amount of P51,290.76. You are now complaining the new contract entered into with BANCOM, and requesting for a reconsideration of the original contract. From the facts presented, it shows that your complaint does not involve any controversy arising out of intra-corporate relations. Neither does it involve any device or scheme employed by nor any act, of the board of directors and/or officers, amounting to fraud and misrepresentation which may be detrimental to the interest of the public. Thus, the Commission regrets to inform you that it cannot take cognizance of your complaint. It is, therefore, advised that you settle the matter with the corporation itself, and should you believe that your consent to the new contract was vitiated by mistake or fraud, you may file a proper action for annulment thereof with the regular courts (Article 1390, paragraph 2, Civil Code of the Philippines). LexLib Please be advised accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Associate Commissioner