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Home arrow Law Updates arrow A lease contract may be terminated without judicial intervention if so stipulated
A lease contract may be terminated without judicial intervention if so stipulated Print
In Fort Bonifacio Development Corporation vs. Yllas Lending Corporation, et al. G.R. No. 158997. October 6, 2008, the Court upheld the validity of a contractually stipulated termination clause. The court said that the stipulation is in the nature of a resolutory condition, for upon the exercise by the lessor of his right to take possession of the leased property, the contract is deemed terminated. This kind of contractual stipulation is not illegal, there being nothing in the law proscribing such kind of agreement. Judicial permission to cancel the agreement was not, therefore necessary because of the express stipulation in the contract of lease that the lessor, in case of failure of the lessee to comply with the terms and conditions thereof, can take-over the possession of the leased premises, thereby cancelling the contract of sub-lease. Resort to judicial action is necessary only in the absence of a special provision granting the power of cancellation.
 
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