Facts: LL and Company Development and Agro-Industrial Corporation (LL) leased a 1,112 square meter lot to Huang Chao Chun and Yang Tung Fa (Huang and Yang). The lease contract had a fixed term and included specific provisions for renewal and rental increases. Huang and Yang allegedly failed to pay rent for a significant period. The lease contract expired, but Huang and Yang refused to vacate the property. Issues: Did Huang and Yang violate the lease agreement by failing to pay rent? Were Huang and Yang entitled to stay on the property after the contract's expiration? What were the appropriate remedies for LL, the lessor? Ruling: The Supreme Court ruled partially in favor of both LL and Huang and Yang: In favor of LL: Huang and Yang were found to have violated the terms of the lease by not paying rent. They were ordered to vacate the property. In favor of Huang and Yang: The Court determined that the lease was automatically extended on a month-to-month basis after the fixed term,

  Facts Rufino Dulay, Sr. and his wife, Ignacia Vicente, donated a 10,000 square meter portion of their land to the Department of Education and Culture (DECS), now the Department of Education (DepEd). The deed of donation included a condition: the land was to be used for school purposes, specifically for the construction of a building for the Rizal National High School. The DECS/DepEd failed to construct the school building, and the land remained unused for many years. The heirs of Rufino Dulay, Sr. filed a case to revoke the donation due to this breach of condition. Issues Whether the donation was subject to a condition that the DECS/DepEd was required to fulfill. Whether the failure of the DECS/DepEd to use the land for its intended purpose constituted a breach of condition, justifying the revocation of the donation. Ruling The Supreme Court ruled in favor of the heirs of Rufino Dulay, Sr. The Court held that the donation was made with an explicit resolutory condition – the use of th

A resolutory period is a specific timeframe attached to an obligation or contract. The fulfillment of the obligation or termination of the contract happens upon the arrival of this period. It's important to understand that a resolutory period operates differently from a regular period or deadline. With a regular period, the obligation becomes due and must be fulfilled on a particular date. With a resolutory period, the contract comes to an end. Key Points (Based on the Civil Code of the Philippines): Article 1191  - Contracts with a resolutory period become effective at once but are terminated upon the arrival of the set period. Article 1192  - If the obligation of either party becomes impossible to fulfill (due to no fault of the parties), the obligation is extinguished. Article 1193  - In cases with a set period, the obligation only becomes demandable when that period arrives. However, there's the concept of a "day certain," a period that will undoubtedly happen, ev

  What are Resolutory Conditions? A resolutory condition is a type of condition attached to a contract or obligation. When this condition is fulfilled, the contract or obligation is automatically extinguished (resolved). Key point:  Resolutory conditions undo an existing contract, as if it never happened in the first place. Resolutory Conditions in Philippine Law The primary source for understanding resolutory conditions in the Philippines is the New Civil Code (Republic Act 386): Article 1191:  Obligations for which a specific date (day certain) is fixed are only demandable when that day arrives. An obligation with a resolutory period takes effect immediately but will end upon the arrival of the specified date. Article 1192:  Even if there isn't a specific date, the courts can establish a period if it can be determined from context that a timeframe was intended. The duration of a period can also be established by the courts if it is dependent on the debtor's will. Important Co

T he concept of payment by cession in obligations and contracts, with a focus on Philippine law. What is Payment by Cession? Cession  (or Assignment): In a legal context, cession means transferring a right from one person (the cedent or assignor) to another (the cessionary or assignee). Payment by Cession : This occurs when a debtor, with the consent of the creditor, transfers ownership of their property to the creditor as a form of fulfillment for an outstanding obligation (debt). Key Points (under Philippine Law) Governing Law:  The primary laws governing cession in the Philippines are found in the Civil Code of the Philippines, specifically Articles 1255 to 1263. Consent:  Consent from all parties (debtor, creditor, and potentially third-parties) is generally required for a valid cession. Debtor's Release:  After the cession, the debtor's responsibility is limited to the net proceeds of the assigned property. They are released from further liability unless expressly agreed u

T he term "constructive payment" is used in various legal contexts around the world, it doesn't have a specific, well-defined legal doctrine within Philippine contract and obligations law. Here's what you need to understand: Key Concepts Related to Payment in Philippine Law The Civil Code of the Philippines addresses obligations and contracts. Here are some relevant principles that might be indirectly related to what you're thinking of as "constructive payment": Modes of Payment (Article 1249):  Payment can be made in: Money Any agreed-upon substitute (e.g., checks, promissory notes) Delivery of a thing (dacion en pago) Performance of a service (application of payment) Imputation of Payment (Article 1252):  When a debtor owes several debts to a single creditor, rules exist to determine which debt is satisfied by a payment. Consignation (Article 1256):  If the creditor refuses payment without just cause, the debtor can make a consignation (depositing the