I. Manuel Uy & Sons, Inc. v. Valbueco, Incorporated, G.R. No. 179594, September 11, 2013.

Contracts; contract to sell d st n!" s#ed $rom contract o$ sale; n a contract to sell, o%ners# p rema ns % t# t#e &endor and does not pass to t#e &endee "nt l $"ll pa'ment o$ t#e p"rc#ase pr ce; a deed o$ sale s absol"te %#en t#ere s no st p"lat on n t#e contract t#at t tle to t#e propert' rema ns % t# t#e seller "nt l t#e $"ll pa'ment o$ t#e p"rc#ase pr ce. In a cond t onal sale, as n a contract to sell, o%ners# p rema ns % t# t#e &endor and does not pass to t#e &endee "nt l $"ll pa'ment o$ t#e p"rc#ase pr ce. (#e $"ll pa'ment o$ t#e p"rc#ase pr ce parta)es o$ a s"spens &e cond t on, and non*$"l$ llment o$ t#e cond t on pre&ents t#e obl !at on to sell $rom ar s n!. (o d $$erent ate, a deed o$ sale s absol"te %#en t#ere s no st p"lat on n t#e contract t#at t tle to t#e propert' rema ns % t# t#e seller "nt l $"ll pa'ment o$ t#e p"rc#ase pr ce. Ramos v. Heruela #eld t#at +rt cles 1191 and 1592 o$ t#e C & l Code are appl cable to contracts o$ sale, %# le R.+. No. ,552 appl es to contracts to sell. II. Manuel Uy & Sons, Inc. v. Valbueco, Incorporated, G.R. No. 179594, September 11, 2013. Contracts; lease contracts; lease contracts s"r& &e t#e deat# o$ t#e part es and cont n"e to b nd t#e #e rs e-cept $ t#e contract states ot#er% se; t#e pro& s on n t#e lease contract stat n! t#at .t# s contract s nontrans$erable "nless pr or %r tten consent o$ t#e lessor s obta ned n %r t n!/ re$ers to trans$ers nter & &os and not transm ss ons mort s ca"sa. (#e S"preme Co"rt #as pre& o"sl' r"led t#at lease contracts, b' t#e r nat"re, are not personal. (#e !eneral r"le, t#ere$ore, s lease contracts s"r& &e t#e deat# o$ t#e part es and cont n"e to b nd t#e #e rs e-cept $ t#e contract states ot#er% se. In Sui Man Hui Chan v. Court of ppeals, %e #eld t#at0 .+ lease contract s not essent all' personal n c#aracter. (#"s, t#e r !#ts and obl !at ons t#ere n are transm ss ble to t#e #e rs. (#e !eneral r"le, t#ere$ore, s t#at #e rs are bo"nd b' contracts entered nto b' t#e r predecessors* n* nterest e-cept %#en t#e r !#ts and obl !at ons ar s n! t#ere$rom are not transm ss ble b' 112 t#e r nat"re, 122 st p"lat on or 132 pro& s on o$ la%. In t#e s"b3ect Contract o$ 4ease, not onl' %ere t#ere no st p"lat ons pro# b t n! an' transm ss on o$ r !#ts, b"t ts &er' terms and cond t ons e-pl c tl' pro& ded $or t#e transm ss on o$ t#e r !#ts o$ t#e lessor and o$ t#e lessee to t#e r respect &e #e rs and s"ccessors. (#e contract s t#e la% bet%een t#e part es. (#e deat# o$ a part' does not e-c"se nonper$ormance o$ a contract, %# c# n&ol&es a propert' r !#t, and t#e r !#ts and obl !at ons t#ere"nder pass to t#e s"ccessors or representat &es o$ t#e deceased. S m larl', nonper$ormance s not e-c"sed b' t#e deat# o$ t#e part' %#en t#e ot#er part' #as a propert' nterest n t#e s"b3ect matter o$ t#e contract./ Sect on , o$ t#e lease contract pro& des t#at .5t6# s contract s nontrans$erable "nless pr or consent o$ t#e lessor s obta ned n %r t n!./ Sect on , re$ers to trans$ers inter vivos and not transm ss ons mortis causa. 7#at Sect on , see)s to a&o d s $or t#e lessee to s"bst t"te a t# rd part' n place o$ t#e lessee % t#o"t t#e lessor8s consent. III. Manuel Uy & Sons, Inc. v. Valbueco, Incorporated, G.R. No. 179594, September 11, 2013. Contracts; lease contracts; s"blease arran!ement; concept. +ss !nment or trans$er o$ lease, %# c# s co&ered b' +rt cle 1,49 o$ t#e C & l Code, s d $$erent $rom a s"blease arran!ement, %# c# s !o&erned b' +rt cle 1,50 o$ t#e same Code. In a s"blease, t#e lessee becomes n t"rn a lessor to a s"b*lessee. (#e

s"b*lessee t#en becomes l able to pa' rentals to t#e or ! nal lessee. 9o%e&er, t#e 3"r d cal relat on bet%een t#e lessor and lessee s not d ssol&ed. (#e part es cont n"e to be bo"nd b' t#e or ! nal lease contract. (#"s, n a s"blease arran!ement, t#ere are at least t#ree part es and t%o d st nct 3"r d cal relat ons. I :. Manuel Uy & Sons, Inc. v. Valbueco, Incorporated, G.R. No. 179594, September 11, 2013. Contracts; lease contracts; lessee8s r !#t "pon t#e term nat on o$ t#e lease to 1a2 cla m re mb"rsement $rom t#e lessor $or #al$ t#e &al"e o$ t#e "se$"l mpro&ements ntrod"ced b' t#e lessee n !ood $a t#, or to 1b2 demol s# o$ s"c# mpro&ements. (#e C+ erred n not appl' n! +rt cle 1,7; o$ t#e C & l Code %# c# pro& des0 .+rt. 1,7;. I$ t#e lessee ma)es, n !ood $a t#, "se$"l mpro&ements %# c# are s" table to t#e "se $or %# c# t#e lease s ntended, % t#o"t alter n! t#e $orm or s"bstance o$ t#e propert' leased, t#e lessor "pon t#e term nat on o$ t#e lease s#all pa' t#e lessee one*#al$ o$ t#e &al"e o$ t#e mpro&ements at t#at t me. S#o"ld t#e lessor re$"se to re mb"rse sa d amo"nt, t#e lessee ma' remo&e t#e mpro&ements, e&en t#o"!# t#e pr nc pal t# n! ma' s"$$er dama!e t#ereb'. 9e s#all not, #o%e&er, ca"se an' more mpa rment "pon t#e propert' leased t#an s necessar'. 7 t# re!ard to ornamental e-penses, t#e lessee s#all not be ent tled to an' re mb"rsement, b"t #e ma' remo&e t#e ornamental ob3ects, pro& ded no dama!e s ca"sed to t#e pr nc pal t# n!, and t#e lessor does not c#oose to reta n t#em b' pa' n! t#e r &al"e at t#e t me t#e lease s e-t n!" s#ed./ (#e $ore!o n! pro& s on appl es $ t#e mpro&ements %ere0 112 ntrod"ced n !ood $a t#; 122 "se$"l; and 132 s" table to t#e "se $or %# c# t#e lease s ntended, % t#o"t alter n! t#e $orm and s"bstance. 7e $ nd t#at t#e a$orement oned re<" s tes are sat s$ ed n t# s case. (#e b" ld n!s %ere constr"cted be$ore German8s dem se, d"r n! t#e s"bs stence o$ a &al d contract o$ lease. It does not appear t#at 9=S> pro# b ted German $rom constr"ct n! t#e b" ld n!s. (#"s, 9=S> s#o"ld #a&e re mb"rsed German 1or # s estate2 #al$ o$ t#e &al"e o$ t#e mpro&ements as o$ 2001. I$ 9=S> s not % ll n! to re mb"rse t#e Inocenc os, t#en t#e latter s#o"ld be allo%ed to demol s# t#e b" ld n!s. :. nalita !. Inocencion, substitutin" for Ramon Inocencion #deceased$ v. Hospicio de San %ose, G.R. No. 2017;7, September 25, 2013. Contracts; tort o"s nter$erence; elements; e-cept on. +s correctl' po nted o"t b' t#e Inocenc os, tort o"s nter$erence #as t#e $ollo% n! elements0 112 e- stence o$ a &al d contract; 122 )no%led!e on t#e part o$ t#e t# rd person o$ t#e e- stence o$ t#e contract; and 132 nter$erence o$ t#e t# rd person % t#o"t le!al 3"st $ cat on or e-c"se. In So !in" &un v. Court of ppeals, %e #eld t#at t#ere %as no tort o"s nter$erence $ t#e ntr"s on %as mpelled b' p"rel' econom c mot &es. In So !in" &un, %e e-pla ned t#at0 .+"t#or t es debate on %#et#er nter$erence ma' be 3"st $ ed %#ere t#e de$endant acts $or t#e sole p"rpose o$ $"rt#er n! # s o%n $ nanc al or econom c nterest. ?ne & e% s t#at, as a !eneral r"le, 3"st $ cat on $or nter$er n! % t# t#e b"s ness relat ons o$ anot#er e- sts %#ere t#e actor8s mot &e s to bene$ t # msel$. S"c# 3"st $ cat on does not e- st %#ere # s sole mot &e s to ca"se #arm to t#e ot#er. +dded to t# s, some a"t#or t es bel e&e t#at t s not necessar' t#at t#e nter$erer8s nterest o"t%e !#s t#at o$ t#e part' %#ose r !#ts are n&aded, and t#at an nd & d"al acts "nder an econom c nterest t#at s

s"bstant al, not merel' de minimis, s"c# t#at %ron!$"l and mal c o"s mot &es are ne!at &ed, $or #e acts n sel$*protect on. @oreo&er, 3"st $ cat on $or protect n! one8s $ nanc al pos t on s#o"ld not be made to depend on a compar son o$ # s econom c nterest n t#e s"b3ect matter % t# t#at o$ ot#ers. It s s"$$ c ent $ t#e mpet"s o$ # s cond"ct l es n a proper b"s ness nterest rat#er t#an n %ron!$"l mot &es./ :I. =ama!es; loss o$ earn n! capac t'; compensat on $or lost ncome s n t#e nat"re o$ dama!es and as s"c# re<" res d"e proo$ o$ t#e dama!es s"$$ered; t#ere m"st be "nb ased proo$ o$ t#e deceased8s ncome. In Aeople &. Cara !, t#e S"preme Co"rt #ad dra%n t%o e-cept ons to t#e r"le t#at .doc"mentar' e& dence s#o"ld be presented to s"bstant ate t#e cla m $or dama!es $or loss o$ earn n! capac t',/ and #a&e t#"s a%arded dama!es %#ere t#ere s test mon' t#at t#e & ct m %as e t#er 112 sel$*emplo'ed earn n! less t#an t#e m n m"m %a!e "nder c"rrent labor la%s, and 3"d c al not ce ma' be ta)en o$ t#e $act t#at n t#e & ct m8s l ne o$ %or) no doc"mentar' e& dence s a&a lable; or 122 emplo'ed as a da l'*%a!e %or)er earn n! less t#an t#e m n m"m %a!e "nder c"rrent labor la%s./ In !eople of the !hilippines v. 'd(in Ibane) y lbante, et al., G.R. No. 197;13, September 25, 2013. :II. Bstoppel; re<" s tes. Cor estoppel to ta)e e$$ect, t#ere m"st be )no%led!e o$ t#e real $acts b' t#e part' so"!#t to be estopped and rel ance b' t#e part' cla m n! estoppel on t#e representat on made b' t#e $ormer. In t# s case, pet t oner cannot be estopped $rom as) n! $or t#e ret"rn o$ t#e &essel n t#e cond t on t#at t #ad been at t#e t me t %as se Ded b' respondent beca"se #e #ad not )no%n o$ t#e deter orated cond t on o$ t#e s# p. 'rnesto *y v. Hon. +ina M. &ibat,!alamos, in her capacity as !residin" %ud"e of the R-C, &ranch ./, Ma0ati City, and 1ri2 Metro 3easin" and 4inance Corporation, G.R. No. 19,200, September 11, 2013. :III. Me"a(orld Construction and *evelopment Corporation v. 'n"r. 3uis U. !arada, represented by 'n"r. 3eonardo . !arada of +enlite Industries, G.R. No. 1;3;04, September 11, 2013.

Interest; >"d!ment a%ard; mpos t on o$ nterests; "nder ESA C rc"lar No. 799, e$$ect &e on >"l' 1, 2013, t#e nterest rate to be mposed $or a loan or $orbearance o$ mone', !oods or cred ts and t#e rate allo%ed n 3"d!ments n t#e absence o$ st p"lat on t#ereon, %as c#an!ed $rom 12F to ,F. Not ce m"st be ta)en t#at n Resol"t on No. 79, dated @a' 1,, 2013, t#e @onetar' Eoard o$ t#e Ean!)o Sentral n! A l p nas appro&ed t#e re& s on o$ t#e nterest rate to be mposed $or t#e loan or $orbearance o$ an' mone', !oods or cred ts and t#e rate allo%ed n 3"d!ments, n t#e absence o$ an e-press contract as to s"c# rate o$ nterest. (#"s, "nder ESA C rc"lar No. 799, ss"ed on >"ne 21, 2013 and e$$ect &e on >"l' 1, 2013, t#e sa d rate o$ nterest s no% bac) at s - percent 1,F2, S.C. IG.

Citiban0, 5. . and the Citi"roup !rivate &an0 v. 'ster H. -anco,+abaldon, et al.6 Carol 3im v. 'ster H. -anco,+abaldon, et al., G.R. No. 19;444HG.R. No. 19;4,9*70, September 4, 2013. 4ac#es; concept; t#e <"est on o$ lac#es s addressed to t#e so"nd d scret on o$ t#e co"rt and, be n! an e<" table doctr ne, ts appl cat on s controlled b' e<" table cons derat ons. 4ac#es #as been de$ ned as t#e $a l"re or ne!lect $or an "nreasonable and "ne-pla ned len!t# o$ t me to do t#at %# c#, b' e-erc s n! d"e d l !ence, co"ld or s#o"ld #a&e been done earl er, t#"s, ! & n! r se to a pres"mpt on t#at t#e part' ent tled to assert t e t#er #as abandoned or decl ned to assert t. ?n t# s score, t s a %ell*settled pr nc ple o$ la% t#at lac#es s a reco"rse n e<" t', %# c# s, appl ed onl' n t#e absence o$ stat"tor' la%. +nd t#o"!# lac#es appl es e&en to mprescr pt ble act ons, ts elements m"st be pro&ed pos t &el'. Ilt matel', t#e <"est on o$ lac#es s addressed to t#e so"nd d scret on o$ t#e co"rt and, be n! an e<" table doctr ne, ts appl cat on s controlled b' e<" table cons derat ons. G. !hilippine Reclamation uthority #formerly 0no(n as the !ublic 'states uthority v. Roma"o, Inc.6Roma"o, Inc. Vs. !hilippine Reclamation uthority, G.R. Nos. 174,,5 and 175221, September 1;, 2013.

?bl !at ons; no&at on; concept; elements. In no&at on, a s"bse<"ent obl !at on e-t n!" s#es a pre& o"s one t#ro"!# s"bst t"t on e t#er b' c#an! n! t#e ob3ect or pr nc pal cond t ons, b' s"bst t"t n! anot#er n place o$ t#e debtor, or b' s"bro!at n! a t# rd person nto t#e r !#ts o$ t#e cred tor. No&at on re<" res 1a2 t#e e- stence o$ a pre& o"s &al d obl !at on; 1b2 t#e a!reement o$ all part es to t#e ne% contract; 1c2 t#e e-t n!" s#ment o$ t#e old contract; and 1d2 t#e &al d t' o$ t#e ne% one. (#ere cannot be no&at on n t# s case s nce t#e proposed s"bst t"ted part es d d not a!ree to t#e AR+8s s"pposed ass !nment o$ ts obl !at ons "nder t#e contract $or t#e electr cal and l !#t %or)s at 9er ta!e Aar) to t#e 9A@C. (#e latter de$ n tel' and clearl' re3ected t#e AR+8s ass !nment o$ ts l ab l t' "nder t#at contract to t#e 9A@C. GI. !hilippine Reclamation uthority #formerly 0no(n as the!ublic 'states uthority v. Roma"o, Inc.6Roma"o, Inc. Vs. !hilippine Reclamation uthority,G.R. Nos. 174,,5 and 175221, September 1;, 2013. ?bl !at ons; no&at on as a mode o$ e-t n!" s# n! an obl !at on; concept; no&at on s ne&er pres"med b"t m"st be clearl' and "ne<" &ocall' s#o%n. No&at on s a mode o$ e-t n!" s# n! an obl !at on b' c#an! n! ts ob3ects or pr nc pal obl !at ons, b' s"bst t"t n! a ne% debtor n place o$ t#e old one, or b' s"bro!at n! a t# rd person to t#e r !#ts o$ t#e cred tor. It s .t#e s"bst t"t on o$ a ne% contract, debt, or obl !at on $or an e- st n! one bet%een t#e same or d $$erent part es./ (#e settled r"le s t#at no&at on s ne&er pres"med, b"t m"st be clearl' and "ne<" &ocall' s#o%n. In order $or a ne% a!reement to s"persede t#e old one, t#e part es to a contract m"st e-pressl' a!ree t#at t#e' are abro!at n! t#e r old contract n $a&or o$ a ne% one. (#"s, t#e mere s"bst t"t on o$ debtors % ll not res"lt n no&at on, and t#e $act t#at t#e cred tor accepts pa'ments $rom a t# rd person, %#o #as ass"med t#e obl !at on, % ll res"lt merel' n t#e add t on o$

debtors and not no&at on, and t#e cred tor ma' en$orce t#e obl !at on a!a nst bot# debtors. I$ t#ere s no a!reement as to sol dar t', t#e $ rst and ne% debtors are cons dered obl !ated 3o ntl'.