YHT REALTY CORP vs. CA G.R. No. 126780 Feb. 17, 2005 FACTS: Private respondent McLou !

!"in, used to sta# at $!eraton %ote" durin !is trips to t!e P!i"ippines unti" &an convinced !i' to trans(er (ro' $!eraton %ote" to &ropicana )!ere Laine*, Pa#a' and +ani"o Lope* )ere e'p"o#ed. Lope* served as 'ana er o( t!e !ote" )!i"e Laine* and Pa#a' !ad custod# o( t!e ,e#s (or t!e sa(et# deposit bo-es o( &ropicana. &an too, care o( McLou !"in.s boo,in at t!e &ropicana )!ere !e started sta#in durin !is trips to t!e P!i"ippines. McLou !"in arrived (ro' /ustra"ia and re istered )it! &ropicana. %e rented a sa(et# deposit bo- as it )as !is practice to rent a sa(et# deposit bo- ever# ti'e !e re istered at &ropicana in previous trips. &!e sa(et# deposit bo- cou"d on"# be opened t!rou ! t!e use o( t)o ,e#s, one o( )!ic! is iven to t!e re istered uest, and t!e ot!er re'ainin in t!e possession o( t!e 'ana e'ent o( t!e !ote". 0!en a re istered uest )is!ed to open !is sa(et# deposit bo-, !e a"one cou"d persona""# re1uest t!e 'ana e'ent )!o t!en )ou"d assi n one o( its e'p"o#ees to acco'pan# t!e uest and assist !i' in openin t!e sa(et# deposit bo- )it! t!e t)o ,e#s. 2e(ore "eavin (or a brie( trip to %on ,on , McLou !"in opened !is sa(et# deposit bo- )it! !is ,e# and )it! t!e ,e# o( t!e 'ana e'ent and too, so'e o( !is deposited ite's and "e(t t!e ot!er ite's in t!e bo- as !e did not c!ec, out o( !is roo' at t!e &ropicana durin !is s!ort visit to %on ,on . /(ter returnin to Mani"a, !e c!ec,ed out o( &ropicana and "e(t (or /ustra"ia. 0!en !e arrived in /ustra"ia, !e discovered t!at so'e ite's )ere 'issin . %e a"so noticed t!at t!e 3e)e"r# )!ic! !e bou !t in %on ,on and stored in t!e sa(et# deposit bo- upon !is return to &ropicana )as "i,e)ise 'issin , e-cept (or a dia'ond brace"et. 0!en McLou !"in ca'e bac, to t!e P!i"ippines, !e as,ed i( so'e 'one# and4or 3e)e"r# )!ic! !e !ad "ost )ere (ound and returned to !er or to t!e 'ana e'ent, but Laine* to"d !i' t!at no one in t!e !ote" (ound suc! t!in s and none )ere turned over to t!e 'ana e'ent. %e a ain re istered at &ropicana and rented a sa(et# deposit bo-. Later on, McLou !"in re1uested Laine* and Pa#a' to open !is sa(et# deposit bo-. %e noticed t!at 'ore ite's )ere 'issin . 0!en McLou !"in discovered t!e "oss, !e i''ediate"# con(ronted Laine* and Pa#a' )!o ad'itted t!at &an opened t!e sa(et# deposit bo- )it! t!e ,e# assi ned to !i'. McLou !"in con(ronted &an and t!e "atter con(essed t!at s!e !ad sto"en McLou !"in.s ,e# and )as ab"e to open t!e sa(et# deposit bo- )it! t!e assistance o( Lope*, Pa#a' and Laine*. McLou !"in re1uested (or an investi ation o( t!e incident. Lope* ot in touc! )it! &an and arran ed (or a 'eetin )it! t!e po"ice and McLou !"in. 0!en t!e po"ice did not arrive, Lope* and &an )ent to t!e roo' o( McLou !"in at &ropicana and t!ereat, Lope* )rote on a piece o( paper a pro'issor# note dated 21 /pri" 1588. &!e pro'issor# note reads as (o""o)s6

I promise to pay Mr. Maurice McLoughlin the amount of AUS$4,000.00 and US$2,000.00 or its e ui!alent in "hilippine currency on or #efore May $, %&''. +espite t!e e-ecution o( pro'issor# note b# &an, McLou !"in insisted t!at it 'ust be t!e !ote" )!o 'ust assu'e responsibi"it# (or t!e "oss !e su((ered. %o)ever, Lope* re(used to accept t!e responsibi"it# re"#in on t!e conditions (or rentin t!e sa(et# deposit bo- entit"ed "Undertaking For the Use Of Safety Deposit Box," speci(ica""# para rap!s 728 and 798 t!ereo(, to )it6

2. (o release and hold free and #lameless ()*"I+A,A A"A)(M-,( .*(-L from any lia#ility arising from any loss in the contents and/or use of the said deposit #o0 for any cause 1hatsoe!er, including #ut not limited to the presentation or use thereof #y any other person should the 2ey #e lost3 ... 4. (o return the 2ey and e0ecute the )-L-AS- in fa!or of ()*"I+A,A A"A)(M-,( .*(-L upon gi!ing up the use of the #o0. McLou !"in )ent bac, to /ustra"ia and !e consu"ted !is "a)#ers as to t!e va"idit# o( t!e above'entioned stipu"ations. &!e# opined t!at t!e stipu"ations are void (or bein vio"ative o( universa" !ote" practices and custo's.

ISSUE: 0!et!er a !ote" 'a# evade "iabi"it# (or t!e "oss o( ite's "e(t )it! it (or sa(e,eepin b# its uests, b# !avin t!ese uests e-ecute )ritten )aivers !o"din t!e estab"is!'ent or its e'p"o#ees (ree (ro' b"a'e (or suc! "oss in "i !t o( /rtic"e 200: o( t!e ;ivi" ;ode )!ic! voids suc! )aivers. HELD: NO. According to Art. 200 o! t"# NCC: Art. 2003. The hotel keeper !annot free hi"self fro" responsi#ility #y posting noti!es to the effe!t that he is not lia#le for the arti!les #ro$ght #y the g$est. Any stip$lation #et%een the hotel keeper and the g$est %here#y the responsi#ility of the for"er as set forth in Arti!les &''( to 200& is s$ppressed or di"inished shall #e )oid. /rtic"e 200: )as incorporated in t!e Ne) ;ivi" ;ode as an e-pression o( pub"ic po"ic# precise"# to app"# to situations suc! as t!at presented in t!is case. &!e !ote" business "i,e t!e co''on carrier.s business is i'bued )it! pub"ic interest. ;aterin to t!e pub"ic, !ote",eepers are bound to provide not on"# "od in (or !ote" uests and securit# to t!eir persons and be"on in s. &!e t)in dut# constitutes t!e essence o( t!e business. &!e "a) in turn does not a""o) suc! dut# to t!e pub"ic to be ne ated or di"uted b# an# contrar# stipu"ation in so<ca""ed =underta,in s= t!at ordinari"# appear in prepared (or's i'posed b# !ote" ,eepers on uests (or t!eir si nature. Para rap!s 728 and 798 o( t!e =underta,in = 'ani(est"# contravene /rtic"e 200: o( t!e Ne) ;ivi" ;ode (or t!e# a""o) &ropicana to be re"eased (ro' "iabi"it# arisin (ro' an# "oss in t!e contents and4or use o( t!e sa(et# deposit bo- (or any cause )!atsoever. -!idently, the underta2ing 1as intended to #ar any claim against (ropicana for any loss of the contents of the safety deposit #o0 1hether or not negligence 1as incurred #y (ropicana or its employees. (he ,e1 +i!il +ode is e0plicit that the responsi#ility of the hotel42eeper shall e0tend to loss of, or in5ury to, the personal property of the guests e!en if caused #y ser!ants or employees of the 2eepers of hotels or inns as 1ell as #y strangers, e0cept as it may proceed from any force ma5eure. >t is t!e "oss t!rou ! for!e "a*e$re t!at 'a# spare t!e !ote"<,eeper (ro' "iabi"it#. >n t!e case at bar, t!ere is no s!o)in t!at t!e act o( t!e t!ie( or robber )as done )it! t!e use o( ar's or t!rou ! an irresistib"e (orce to 1ua"i(# t!e sa'e as for!e "a*e$re.

Javier vs. COURT OF APPEALS and LEONARDO TIRO

GR No. 48194 March 15, 1990 Regalado, J.: FACTS:

Leonardo T ro e!ec"#ed a $eed o% a&& gn'en# concern ng h & &hare& o% &#oc( n T ')er*eal#h Cor+ora# on on Fe). 15, 19,, n %a-or o% &+o"&e& Jo&e and .&#rella Ja- er and %or #he a'o"n# o% / 100,000. S+o"&e& +a d / 00,000 a& n # al +a1'en# and #he )alance #o )e +a d n n&#al'en#& a& agreed. The +ar# e& en#ered n#o ano#her deed on Fe). 08, 19,, %or #he add#2l %ore&# conce&& on, &")3ec# o% a +end ng a++l ca# on, ad3o n ng #he area co-ered n #he % r&# deed. A& agreed, #he +a1'en# #here%or o% / 40,000 &hall )e +a d a& &oon a& #he a++l ca# on & a++ro-ed. 5n No-. 18, 19,,, #he $ r. o% Fore&#r1 d rec#ed a con&ol da# on %or #he rene*al o% #he conce&& on. 61 - r#"e o% #he deed, &+o"&e& Ja- er con&ol da#ed * #h #he o#her ad3o n ng conce&& ona re&.5n J"l1 1,, 19,8, T ro % led a co'+la n# %or %a l"re o% #he &+o"&e& #o +a1 #he re'a n ng )alance.S+o"&e& % led #he r an&*er arg" ng #here n #he n"ll #1 o% #he deed& and #he re#"rn o% #he +a1'en#& 'ade )1 #he'. 7# a++eared n record #ha# #he T ')er*eal#h Cor+ora# on *a& a non8e! &#en# organ 9a# on.The #r al co"r# d &' &&ed #he co'+la n# hence, T ro

a++ealed #o CA. CA re-er&ed #he 3"dg'en#. /e# # on #o re- e* % led * #h SC. 7SS:.: ;<N T=. T;5 $..$S AR. N:LL AN$ >57$, T=. F5RM.R F5R T5TAL A6S.NC. 5F C5NS7$.RAT75N AN$ T=. LATT.R F5R N5N8F:LF7LLM.NT 5F C5N$7T75NS. R:L7NG: $ec & on Mod % ed. /e# # oner& con#end #ha# #he deed o% a&& gn'en# con-e1ed #o #he' #he &hare& o% &#oc(& o% +r -a#e re&+onden# n T ')er*eal#h Cor+ora# on, a& &#a#ed n #he deed #&el%. S nce &a d cor+ora# on ne-er ca'e n#o e! &#ence, no &hare o% &#oc(& *a& e-er #ran&%erred #o #he', hence #he &a d deed & n"ll and -o d %or lac( o% ca"&e or con& dera# on. The #r"e ca"&e or con& dera# on o% &a d deed *a& #he #ran&%er o% #he %ore&# conce&& on o% +r -a#e re&+onden# #o +e# # oner& %or /100,000.00. Th & % nd ng & &"++or#ed )1 #he con#e'+oraneo"& and &")&e?"en# ac#& o% +e# # oner& and +r -a#e re&+onden#. 7# & &e##led #ha# #he +re- o"& and & '"l#aneo"& and &")&e?"en# ac#& o% #he +ar# e& are +ro+erl1 cogn 9a)le nd c a o% #he r #r"e n#en# on. The r ac#& re-eal #ha# #he ca"&e &#a#ed n #he

?"e&# oned deed o% a&& gn'en# & %al&e. The deed o% a&& gn'en# o% Fe)r"ar1 15, 19,, & a rela# -el1 & '"la#ed con#rac# *h ch &#a#e& a %al&e ca"&e or con& dera# on, or one *here #he +ar# e& conceal #he r #r"e agree'en#. A con#rac# * #h a %al&e con& dera# on & no# n"ll and -o d +er &e. :nder Ar# cle 144, o% #he C - l Code, a rela# -el1 & '"la#ed con#rac#, *hen # doe& no# +re3"d ce a #h rd +er&on and & no# n#ended %or an1 +"r+o&e con#rar1 #o la*, 'oral&, good c"&#o'&, +")l c order or +")l c +ol c1 ) nd& #he +ar# e& #o #he r real agree'en#. A& #o #he n"ll #1 %or #he non8%"l% l'en# o% #he cond # on&, SC agree&. The e%% cac1 o% &a d deed o% a&& gn'en# & &")3ec# #o #he cond # on #ha# #he a++l ca# on o% +r -a#e re&+onden# %or an add # onal area %or %ore&# conce&& on )e a++ro-ed )1 #he 6"rea" o% Fore&#r1. S nce

+r -a#e re&+onden# d d no# o)#a n #ha# a++ro-al, &a d deed +rod"ce& no e%%ec#. ;hen a con#rac# & &")3ec# #o a &"&+en& -e cond # on, #& ) r#h or e%%ec# - #1 can #a(e +lace onl1 % and *hen #he e-en# *h ch con&# #"#e& #he cond # on ha++en& or & %"l% lled. Moreo-er, "nder #he &econd +aragra+h o% Ar# cle 14,1 o% #he C - l Code, #he e%% cac1 o% #he &ale o% a 'ere ho+e or e!+ec#anc1 & dee'ed &")3ec# #o #he cond # on #ha# #he #h ng * ll co'e n#o e! &#ence. 7n #h & ca&e, & nce +r -a#e re&+onden# ne-er ac?" red an1 r gh# o-er #he add # onal area %or %a l"re #o &ec"re #he a++ro-al o% #he 6"rea" o% Fore&#r1, #he agree'en# e!ec"#ed #here%or, *h ch had %or #& o)3ec# #he #ran&%er o% &a d r gh# #o +e# # oner&, ne-er )eca'e e%%ec# -e or en%orcea)le.

CAT:NGAL >S CAFac#&Aga+ #a T. Ca#"ngal @Aga+ #aA o*ned a +arcel o% land n her na'e & #"a#ed n #he 6arr o o% Tala')an,Ce)" C #1. The &a d +ro+er#1 *a& allegedl1 #he e!cl"& -e +ara+hernal +ro+er#1 o% Aga+ #a. ga+ #a, * #h#he con&en# o% her h"&)and Jo&e, en#ered n#o a Con#rac# #o SellB,C * #h re&+onden# Rodr g"e9.S")&e?"en#l1, #he Con#rac# #o Sell *a& +"r+or#edl1 D"+gradedD n#o a Cond # onal $eed o% Sale. 7# *a&agreed #ha# /05,000,000.00 &hall )e +a1a)le n n&#all'en#& a%#er a%#er #he >.N$.. ha-e @& cAE&"cce&&%"ll1 nego# a#ed, &ec"red and +ro- ded a Road R gh# o% ;a1 e #her )1 * den ng #he e! &# ng RoadR gh# o% ;a1 or )1 &ec"r ng a ne* Road R gh# o% ;a1. 7% ho*e-er &a d Road R gh# o% ;a1 co"ld no# )enego# a#ed, #he >.N$.. &hall g -e no# ce #o #he >.N$5R %or #he' #o rea&&e&& and &ol-e #he +ro)le' )1#a( ng o#her o+# on& and &ho"ld #he & #"a# on "l# 'a#el1 +ro-e %"# le, he &hall #a(e &#e+& #o re&c nd orcancel #he here n Cond # onal $eed o% Sale. #he &+o"&e& Ca#"ngal re?"e&#ed an ad-ance

o% /5,000,000.00 on #he +"rcha&e +r ce %or +er&onal rea&on&. Shor#l1 a%#er h & re%"&al #o +a1 #he ad-ance,he +"r+or#edl1 learned #ha# #he Ca#"ngal& *ere o%%er ng #he +ro+er#1 %or &ale #o #h rd +ar# e&. Jo&eCa#"ngal de'anded #ha# #he %or'er 'a(e "+ h & ' nd a)o"# )"1 ng #he land or e!erc & ng h & Do+# onD#o )"1 #he +ro+er#1. Sho"ld Rodr g"e9 %a l #o e!erc &e h & o+# on #o )"1 #he land, #he Ca#"ngal& *arned#ha# #he1 *o"ld con& der #he con#rac# cancelled and #ha# #he1 *ere %ree #o loo( %or o#her )"1er&. Jo&ecancelled #he con#rac#. Rodr ?"e9 % led %or a re&#ra n ng order a *r # o% +rel ' nar1 n3"nc# on. TheCa#"ngal& alleged #ha# #here *a& con#rac#"al )reach and )ad %a #h on #he +ar# o% Rodr g"e9. Rodr g"e9alleged #ha# #he Ca#"ngal& *ere g" l#1 o% &e-eral ' &re+re&en#a# on& *h ch +"r+or#edl1 nd"cedRodr g"e9 #o )"1 #he +ro+er#1 a# #he +r ce o% /05,000,000.00. RTC r"Fed n %a-or o% Rodr g"e9. =ence#h & +e# # on. ;5N #he +ro- & on& o% #he cond# onal deed o% &ale con&# #"#e a +o&#a# -e cond # on=eldNo. aragra+h 1@)A o% #he Cond # onal $eed o% Sale, &#a# ng #ha# re&+onden# &hall +a1 #he )alance o% #he+"rcha&e +r ce *hen he ha& &"cce&&%"ll1 nego# a#ed and &ec"red a road r gh# o% *a1, & no# a cond # onon #he +er%ec# on o% #he con#rac# nor on #he -al d #1 o% #he en# re con#rac# or #& co'+l ance a&con#e'+la#ed n Ar# cle 1408. 7# & a cond # on '+o&ed onl1 on re&+onden#E& o)l ga# on #o +a1 #here'a nder o% #he +"rcha&e +r ce. 7n o"r - e* and a++l1 ng Ar# cle 1180, &"ch a cond # on & no# +"rel1+o#e&#a# -e a& +e# # oner& con#end. 7# & no# de+enden# on #he &ole * ll o% #he de)#or )"# al&o on #he * llo% #h rd +er&on& *ho o*n #he ad3acen# land and %ro' *ho' #he road r gh# o% *a1 &hall )e nego# a#ed. 7na 'anner o% &+ea( ng, &"ch a cond # on & l (e* &e de+enden# on chance a& #here & no g"aran#ee #ha#re&+onden# and #he #h rd +ar#18lando*ner& *o"ld co'e #o an agree'en# regard ng #he road r gh# o% *a1. Th & #1+e o% ' !ed cond # on & e!+re&&l1 allo*ed "nder Ar# cle 1180 o% #he C - l Code. F"r#her'ore,7n &"', Rodr g"e9E& o+# on #o re&c nd #he con#rac# & no# +"rel1 +o#e&#a# -e )"# ra#her al&o &")3ec# #o #he&a'e ' !ed cond # on a& h & o)l ga# on #o +a1 #he )alance o% #he +"rcha&e +r ce 8 .e. , #he nego# a# on o% a road r gh# o% *a1. 7n #he e-en# #he cond # on & %"l% lled @or #he nego# a# on & &"cce&&%"lA, Rodr g"e9'"&# +a1 #he )alance o% #he +"rcha&e +r ce. 7n #he e-en# #he cond # on & no# %"l% lled @or #he nego# a# on%a l&A, Rodr g"e9 ha& #he cho ce e #her @aA #o no# +roceed * #h #he &ale and de'and re#"rn o% h &do*n+a1'en# or @)A con& der ng #ha# #he cond # on *a& '+o&ed %or h & )ene% #, #o *a -e #he cond # onand &# ll +a1 #he +"rcha&e +r ce de&+ #e #he lac( o% road acce&&. Th & & #he 'o&# 3"&# n#er+re#a# on o% #he+ar# e&E con#rac# #ha# g -e& e%%ec# #o all #& +ro- & on&.
NA$A TELEPHONE CO.% INC. &NATELCO' ( L)ci*no +*gg*,% -#tition#rs% vs. COURT OF APEALS *nd C*.*rin#s S)r II E/#ctric Coo-#r*tiv#% Inc. &CASURECO II'% r#s-ond#nts 012234 NAT.LC5: #ele+hone co. render ng local G long d &#ance &er- ce& n Naga CAS:R.C5 77: +r -a#e cor+ora# on *<c o+era#e& elec#r c +o*er &er- ce n Naga The 0 co'+an e& en#ered n#o a con#rac# *here n NAT.LC5 * ll )e "& ng CAS:R.C5 elec#r c l gh# +o&#& n Naga n o+era# ng #& #ele+hone &er- ce&. 7n re#"rn, %or'er * ll n&#all 10 +hone connec# on& %or #he "&e o% #he la##er %ree o% charge. Ter'<+er od * ll )e a& long a& %or'er need& #o "&e #he la##er2& +o&#&. Con#rac# * ll )e #er' na#ed % #he la##er * ll %orced #o &#o+,

a)andon #& o+era# on a& a +")l c &er- ce G # )eco'e& nece&&ar1 #o re'o-e #he +o&#&. Con#rac# *a& +re+ared )1 A##1. Magga1, 'e')er o% #he CAS:R.C5 6oard o% $ rec#or& G legal co"n&el o% NAT.LC5. %or re%or'a# on o% #he con#rac# *<da'age& #o a)ol &h ne?"al # e& )a&ed on #he %% gro"nd&: 1. # *a& #oo one8& ded n %a-or o% NAT.LC5 0. # *a& no# n accordance *<#he Na# onal .lec#r % ca# on Ad' n &#ra# on @N.AA g" del ne& *<c +ro- de #ha# #he rea&ona)le co'+en&a# on %or #he "&e o% +o&#& &ho"ld )e /10<+o&#<'on#h. 4. #ele+hone ca)le& &#r"ng on #he +o&#& ha-e )eco'e '"ch hea- er G *or&ened )1 l ne'en *ho )ore hole& #hr" #he +o&#& *<c re&"l#ed n#o +o&#& )ro(en d"r ng #1+hoon& *<c +o&#& co&# /0,,40.00 each.

1&# ca"&e o% ac# on: A%#er 10 1r& o% en%orc ng #he con#rac#, CAS:R.C5 % led

0nd ca"&e o% ac# on: CAS:R.C5 l (e* &e alleged #ha# & nce 1981,

NAT.LC5 "&ed 419 o% #he r +o&#& o"#& de Naga *<o an1 con#rac# and la##er co'+an1 &ho"ld +a1 /10.00<+o&# a'o"n# ng #o /0,H,9,0.00 *<c #he la##er re%"&ed #o +a1 de&+ #e de'and&. 4rd ca"&e o% ac# on: For'er al&o co'+la ned #ha# #he la##er +ro- ded +oor &er- ce ca"& ng grea# ncon-en ence G da'age& a'o"n# ng #o no# le&& #han /100(.

NAT.LC52& an&*er +ra1ed %or #he d &' &&al o% #he 1&# ca"&e o% ac# on & nce
# doe& no# &"%% c en#l1 &#a#e a ca"&e o% ac# on, and #2& )arred )1 e&#o++el G +re&cr +# on. The1 cla ' #ha# #he1 co"ld no# ha-e ca"&ed #he de#er ora# on o% CAS:R.C52& +o&#& & nce #he12-e "&ed #he' %or 11 1r&. Al&o, #he r e!+en&e& %or #he 10 %ree +hone& l ne& are %ar n e!ce&& o% #he a'o"n#& cla 'ed )1 CAS:R.C5. The1 re%"&ed #o +a1 #he a'o"n# &+ec % ed n #he 0nd ca"&e o% ac# on )eca"&e *ha# & d"e #o #he' %ro' CAS:R.C5 & 'ore #han la##er2& cla ' aga n&# #he'. ;RT #he 4rd ca"&e o% ac# on, #he1 cla ' #ha# #he Na# onal Teleco''"n ca# on Cor+ora# on @NTCA cla&& % ed #he r &er- ce a& -er1 h gh G o% &"+er or ?"al #1. 6o#h co'+an e& +re&en#ed * #ne&&e& #o &"++or# #he r allega# on. A##1. Maga1 #e&# % ed &"++or# ng NAT.LC52& cla '&. ncrea&e n -ol"'e o% NAT.LC52& &")&cr )er&. Con#rac# &ho"ld )e re%or'ed #o a)ol &h #he ne?" # e&. NAT.LC5 &ho"ld +a1 %or #he "&e o% CAS:R.C52& +o&#& a# /10.00<+o&# *h le #he la##er &ho"ld +a1 #he 'on#hl1 ) ll& %or #he "&e o% %or'er2& +hone l ne& n Naga. A'o"n# &ho"ld )e co'+"#ed %ro' #he da#e o% % l ng o% #he co'+la n#. Sa'e ha& )een held %or #he 0nd ca"&e o% ac# on. ;h le #he 4rd ca"&e o% ac# on *a& no# &"%% c en#l1 +ro-en. CA: a%% r'ed #r al co"r# dec & on )a&ed on #he %% gro"nd&:

Tr al Co"r#: con#rac# ha& )eco'e d &ad-an#ageo"& #o CAS:R.C5 d"e #o

1. Ne* C - l Code Ar#. 10,H1. Al#ho"gh #he con#rac# *a& %a r #o )o#h

+ar# e& a# #he # 'e o% #& e!ec"# on @#hen, NAT.LC5 &# ll had -er1 l ' #ed ca+a) l #1A, &"+er-en ng c rc"'&#ance& @NAT.LC52& e!+an& onA ha-e 'ade #he con#rac# #oo one8& ded n %a-or o% NAT.LC5 #o #he grea# d &ad-an#age o% CAS:R.C5. Con# n"ed en%orce'en# o% #he con#rac# ha& gone )e1ond #he con#e'+la# on o% #he la##er, #h"& # &ho"ld )e relea&ed #here%ro'. .?" #1 de'and& cer#a n econo' c e?" l )r "' )e#*een #he +re&#a# on #he co"n#er8+re&#a# on G doe& no# +er' # #he "nl ' #ed '+o-er &h'en# o% one +ar#1 %or #he )ene% # o% #he o#her )1 #he e!ce&& -e r g d #1 o% #he +r nc +le o% #he o)l ga#or1 %orce o% con#rac#&. 0. Con#rac# *a& &")3ec# #o a +o#e&#a# -e cond # on *< rendered #he cond # on -o d. Iss)#s ( R*tio: 1. 5ON Art. 1267 is *--/ic*8/#. 9YES NAT.LC5 cla '& #2& no# & nce con#rac# n #h & ca&e doe&n2# n-ol-e rend # on o% &er- ce<+er&onal +re&#a# on and #2& no# %or %"#"re &er- ce *<%"#"re "n"&"al change. 7# n-o(e& 5ccena -&. Ja)&on. And #he ar# cle *a& ne-er ra &ed )1 CAS:R.C5.

 The +ro- & on &+ea(& o% &er- ce @'ean ng +er%or'ance o% #he o)l ga# onA
*<c ha& )eco'e &o d %% c"l#. 7# doe&n2# re?" re #ha# #he con#rac# )e %or %"#"re &er- ce *<%"#"re "n"&"al change. Ra#her, # &+ea(& o% "n%ore&een e-en#& or #he d &cred #ed #heor1 o% re#$s si! stanti#$s n +")l c n#erna# onal la* *here n +ar# e& &# +"la#e n #he l gh# o% cer#a n +re-a l ng cond # on& G once #he&e cond # on& cea&e #o e! &# #he con#rac# al&o cea&e&. .?" #1 G good %a #h de'and #ha# *hen )a& & o% #he con#rac# d &a++ear&, #he +re3"d ced +ar#1 ha& a r gh# #o rel e%. Fac# #ha# #h & +ro- & on *a& no# ra &ed )1 #he +ar# e& n #he r +lead ng& G *a& ne-er &")3ec# o% #r al & ''a#er al. Co"r# ha& d &cre# on #o con& der an "na&& gned error #ha# & clo&el1 rela#ed #o an error +ro+erl1 a&& gned a& long a& #he con& dera# on & nece&&ar1 n arr - ng a# a 3"&# dec & on. The 'a#er al allega# on& o% %ac# n #he co'+la n# G no# #he legal concl"& on 'ade or #he +ra1er #ha# de#er' ne& #he rel e% #o *<c #he +la n# %% & en# #led and +la n# %% & en# #led #o a& '"ch rel e% a& #he %ac#& *arran# al#ho"gh #ha# rel e% & no# &+ec % call1 +ra1ed %or. NAT.LC5 *a& g -en #he o++or#"n #1 #o +re&en# #& e- dence ;RT #h & 'a##er *hen #he1 *ere g -en #he chance #o an&*er #he &&"e o% ;5N #he con#rac# ha& )eco'e #oo one8& ded n #& %a-or G #oo n ?" #o"&, "n%a r G d &ad-an#ageo"& #o CAS:R.C5. 2. 5ON t"# r)/ing in Occ#n* is *--/ic*8/#. : NO. Ca&e +ro- de& #ha# Ar#. 10,H doe&n2# a"#hor 9e #he co"r#& #o re'a(e, 'od %1 or re- &e #he con#rac# or #o % ! #he d - & on o% &hare& )e#*een #he +ar# e& a& con#rac#"all1 &# +"la#ed *<#he %orce o% la* )e#*een #he +ar# e&. Co'+la n# %or #he 'od % ca# on o% con#rac# *a& d &' &&ed %or %a l"re #o &#a#e a ca"&e o% ac# on. 7n #h & ca&e, CAS:R.C52& co'+la n# G e- dence # +re&en#ed &"%% c en#l1 'ade o"# a ca"&e o% ac# on "nder Ar#. 10,H. /ar# e& are relea&ed %ro' #he r correla# -e o)l ga# on& "nder #he con#rac#. 6"# #a( ng n#o acco"n# #he +o&& )le con&e?"ence& o% 'erel1 relea& ng #he +ar# e& %ro' #he con#rac#, #he SC dec ded #o "+hold #he #r al co"r# r"l ng ;RT +a1'en# %or "&e o% +o&# and #he +hone l ne& &o a& no# d &r"+# #he )a& c G e&&en# al &er- ce& )e ng rendered )1 )o#h co'+an e& and #o a-o d "n3"&# enr ch'en# )1 NAT.LC5 a# #he e!+en&e o% CAS:R.C5. 3. Ca"&e o% ac# on "*s not ,#t -r#scri8#d & nce CC Ar#. 1144 +ro- de& #ha# an ac# on "+on a *r ##en con#rac# '"&# )e )ro"gh# *< n 101r& %ro' #he # 'e #he r# o% ca"&e o% ac# on accr"e&. 7n #h & ca&e, ca"&e o% ac# on aro&e *hen CAS:R.C5 a&(ed #& co"n&el #o re- e* #he con#rac# *<c *a& n 1980<84. Ca&e *a& % led n 1989, #h"&, 10 1r& ha& no# la+&ed. 4. Pr#st*tions *r# not -)r#/, -ot#st*tiv#. Cond # on& do no# de+end &olel1 on #he * ll o% e #her +ar#1. CA, n r"l ng #ha# #he #er'<+er od @4rd )"lle#, Fac#& +ar#A o% #he con#rac# & +o#e&#a -e, o-erloo(ed #he cond # on #ha# #he con#rac# * ll )e #er' na#ed *hen CAS:R.C5 * ll )e %orced #o &#o+, a)andon #& o+era# on a& a +")l c &er- ce G # )eco'e& nece&&ar1 #o re'o-e #he elec#r c l gh# +o&#. The1 are ac#"all1 ca&"al cond # on& *<c de+end on chance, ha9ard or * ll o% a 4rd +er&on. The con#rac# & &")3ec# #o ' !ed cond # on& *<c don2# n-al da#e #he con#rac# &# +"la# on&. Ho/ding: /e# # on den ed. CA dec & on a%% r'ed.