sample cases of obligations and contracts
[G.R. NO. 159821 : August 19, 2005]
PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY, Petitioners, v. COURT OF APPEALS and QVEGG MARINE TRANSPORT and BUILDERS CORPORATION, Respondents.
D E C I S I O N
CARPIO MORALES, J.:
Assailed via Petition for Review on Certiorari are the November 8, 2002 Decision and August 25, 2003 Resolution of the Court of Appeals in CA-G.R. CV No. 46297, "QVEGG Marine Transport and Builders Corporation v. Philippine Fisheries Development Authority."
On August 1, 1989, petitioner Philippine Fisheries Development Authority as lessor, and respondent QVEGG Marine Transport and Builders Corporation as lessee, entered into a 10-year lease contract1 covering the Iloilo Fishing Port Complex slipways and other auxiliary facilities for a monthly rental of P85,000.00. The pertinent provision of the contract reads:
3. For and in consideration of the use of the leased premises and above-mentioned equipment, the LESSEE hereby agrees to pay the LESSOR a monthly rental of EIGHTY FIVE THOUSAND PESOS (P85,000.00) for the first year of this Contract reckoned from the date of signing. The monthly rental shall be payable within the first five days of each month without need of demand at the office of the LESSOR. In case of delay in the payment of the said monthly rental, it shall earn interest at the rate of 3% per month on any or all delayed payments, provided that failure on the part of the LESSEE to pay rentals for two (2) successive months shall be a ground for the termination of this Contract without need of judicial action. The LESSEE likewise agrees to a yearly escalation rate of 10% on the monthly lease rental effective on the second year. (Emphasis and underscoring supplied).
It appears that respondent was delinquent in the performance of its contractual obligations, prompting petitioner to terminate the contract by letter2 dated November 16, 1992.
Responding to the letter of termination, respondent requested the restructuring of its overdue account. By
PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY, Petitioners, v. COURT OF APPEALS and QVEGG MARINE TRANSPORT and BUILDERS CORPORATION, Respondents.
D E C I S I O N
CARPIO MORALES, J.:
Assailed via Petition for Review on Certiorari are the November 8, 2002 Decision and August 25, 2003 Resolution of the Court of Appeals in CA-G.R. CV No. 46297, "QVEGG Marine Transport and Builders Corporation v. Philippine Fisheries Development Authority."
On August 1, 1989, petitioner Philippine Fisheries Development Authority as lessor, and respondent QVEGG Marine Transport and Builders Corporation as lessee, entered into a 10-year lease contract1 covering the Iloilo Fishing Port Complex slipways and other auxiliary facilities for a monthly rental of P85,000.00. The pertinent provision of the contract reads:
3. For and in consideration of the use of the leased premises and above-mentioned equipment, the LESSEE hereby agrees to pay the LESSOR a monthly rental of EIGHTY FIVE THOUSAND PESOS (P85,000.00) for the first year of this Contract reckoned from the date of signing. The monthly rental shall be payable within the first five days of each month without need of demand at the office of the LESSOR. In case of delay in the payment of the said monthly rental, it shall earn interest at the rate of 3% per month on any or all delayed payments, provided that failure on the part of the LESSEE to pay rentals for two (2) successive months shall be a ground for the termination of this Contract without need of judicial action. The LESSEE likewise agrees to a yearly escalation rate of 10% on the monthly lease rental effective on the second year. (Emphasis and underscoring supplied).
It appears that respondent was delinquent in the performance of its contractual obligations, prompting petitioner to terminate the contract by letter2 dated November 16, 1992.
Responding to the letter of termination, respondent requested the restructuring of its overdue account. By