Professional Documents
Culture Documents
a. A lease contract between Mr. A, owner of an agricultural (sugar) land, and Company
X, a sugar milling company.
Period of Lease. This contract of lease shall be for a period of seventy-five (75)
agricultural sugar crop-years (CY), to commence with CY 2016 up to and including
CY 2091.
Ans.: A period of 75 years for a lease of Agricultural land is invalid. To save the
provision of contract, the original period of lease agreement shall be reduced to 25
years subject for renewal of another 25 years and if improvements are made it can be
further renewed to 25 years subject to the approval of the Secretary of Agriculture and
Natural Resources as stated under:
ACT No. 2874 Section 37. Leases shall run for a period of not
more than twenty-five years, but may be renewed for another period of not
to exceed twenty-five years, at the option of the lessee. In case the lessee
shall have made important improvements which, in the discretion of the
Secretary of Agriculture and Natural Resources, justify a renewal of the
lease, a further renewal for an additional period not to exceed twenty-five
years may be granted.
Revised Period of Lease. This contract of lease shall be for a period of twenty-
five(25) agricultural sugar crop-years, to commence from CY2016 up to and
including CY 2041 and may be subject for renewal for a period of twenty-five(25)
agricultural sugar crop-years, to commence from CY2041 up to and including CY
2066 and if improvements are made subject to approval of the Secretary of
Agriculture and natural Resources, this contract of lease may be further renewed for a
period of twenty-five(25) agricultural sugar crop-years, to commence from CY2066
up to and including CY 2099.
b. A construction contract for a new factory building between Employer and Contractor.
Ans.: The provision on dispute settlement is valid under Sec. 4 of E. O. no. 1008
Construction Industry Arbitration Commission (CIAC) has original and exclusive
jurisdiction over disputes arising from, or connected with, contracts entered into by
parties involved in construction in the Philippines, whether the dispute arises before
or after the completion of the contract, or after the abandonment or breach thereof.
These disputes may involve government or private contracts. However, to avoid
confusion on the appointment of arbitrators whether sole or 2 or more arbitrators the
contract shall state the manner on how to choose arbitrators in case dispute arises.
Also, the parties should not limit the place of arbitration at Makati City because under
the Rules of Conciliation and Arbitration of the Construction Industry Arbitration
Commission (CIAC) rule 12.1 The venue, date and time of the arbitral proceedings
shall be mutually agreed upon by the parties and the Arbitral Tribunal. In the event of
disagreement, the choice of venue made by the Arbitral Tribunal shall prevail.
Ans.: the provision on the jurisdiction in which law of the state will governed is
VOID. In the case of Pakistan International Airlines Corporation (G.R. No. 61594)
the Supreme Court ruled that:
Suspension. The Client may suspend all or part of the Services or terminate the
Agreement with or without cause by giving notice to the Consultant, and the
Consultant shall immediately make arrangements to stop the Services, minimize
expenditure and, within 10 days of the notice, provide an electronic copy of all
documents prepared in the performance of the Services.
Ans.: The contract may be invalid, because in the provision parties can
unilaterally suspend or terminate the contract with or without cause. Based on the
principle of mutuality of contracts under Article 1308 of the Civil Code once a
contract is entered into, no party can renounce it unilaterally or without the consent of
the other. Also, under the law parties cannot terminate a perfected contract without
cause.
Revised Suspension. The Client may suspend all or part of the Services or
terminate the Agreement with cause by giving notice to the Consultant, and the
Consultant shall immediately make arrangements to stop the Services, minimize
expenditure and, within 10 days of the notice, provide an electronic copy of all
documents prepared in the performance of the Services.
Part 2.
A. Representations
3. Legal, Valid, and Binding. The BORROWER represents that the loan agreement
constitutes its valid and binding obligations which are enforceable against it in
accordance with its terms;
4. Government Authorizations. The BORROWER states that the execution and delivery
of, and compliance with its obligations under the loan agreement, do not contravene
any law or directive from a government body, its constitutional documents, any
agreement or instrument to which it is a party or any of its obligations to any other
person.
5. Correctness. The BORROWER represents that all information given to the lender in
relation to the loan agreement is correct, complete and not misleading and it has
disclosed to the lender all information which it has or has access to which is relevant
to the assessment by the lender of the nature and amount of the risks undertaken by
the lender becoming its creditor;
6. Financial Statement. The BORROWER attest that the statement of its financial
affairs and all other books and records given to the lender are a true, fair and accurate
statement of its financial position at the date on which they were prepared;
7. No Actions. The BORROWER states that except as notified to the lender in writing
prior to the date of the loan agreement, no litigation, arbitration or administrative
proceeding is current, pending or to its knowledge threatened which has or the
adverse determination of which would be likely to have a material adverse effect;
9. Insurance. The BORROWER has all necessary insurance in place should any harm
come to the asset; and
10. Taxes. The BORROWER agrees that the execution of the agreement will not be
subject to any tax or other charge imposed by a governmental authority.
B. COVENANTS
LESSEE shall not suffer or commit any waste in or about the Apartment or Building, and
shall, at LESSEEs expense, keep the Apartment in good order and repair (except to the
extent Lessor has in this Lease agreed to do so). On termination of this Lease, LESSEE
shall return the Apartment to Lessor in like condition.
7. PAYMENT OF RENT. LESSEE also covenants and agrees to pay the monthly
rentals on or before the 15th of the month.
8. MISCELLANIOUS. The LESSEE also covenants and agrees that the LESSEE and
its children will not smoke anywhere in the property nor permit its guest to smoke in
the property.
9. The LESSEE will not allow minors to drink alcoholic beverages in the property
without the approval of the LESSOR.
10. No pets or animals are allowed to be kept in or about the property without the
permission of the LESSOR. The LESSOR may revoked the approval if the LESSOR
thinks that the animals is dangerous to the other tenants living in the said property.