THIS CONTRACT OF LEASE APPEARS IN THE DECIDED CASE

“PAG-ASA FISHPONG CORP. VS. BERNARDO JIMENEZ, ET AL.”

----------------------------------------------
source:
http://www.supremecourt.gov.ph/jurisprudence/2008/june2008/164912.htm
Pag-asa Fishpong Corp. Vs. Bernardo Jimenez, et al.

“May karapatan bang manatili ang mga nasabing manggagawa kahit tapos na
ang kontrata ng kumuha sa kanila sa may-ari ng palaisdaan?

Wala. Ito ang sagot namin sa katanungan sa kasong ito.”

--------------------------------------------------------------------------------------

CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENT:

This Contract of Lease made and entered into this 27th day of
April, 1989 by and between:

PAG-ASA FISHPOND CORPORATION, a corporation duly organized

and existing in accordance with the laws of the Philippines, with
principal office and business address at 465 A. Flores St., Ermita,
Manila, herein represented by its President, Mr. SEGUNDO
SEANGIO, of legal age, married, Filipino and with postal address at
465 A. Flores St., Ermita, Manila, herein known as the LESSOR;

-AND-

DAVID JIMENEZ, of legal age, married to Pascuala Ramos Jimenez,

Filipino and residing at 1173 Paco, Obando, Bulacan and Noel
Hilario, of legal age, married to Teresita Santiago Hilario, Filipino and
residence of Lawa, Obando, Bulacan, herein known as the
LESSEES.

WITNESSETH

WHEREAS, the Lessor is the registered and absolute owner

of a Real Property, more particularly described as follows, to wit:

CERTIFICATE TITLE NO. T-1747

REGISTER OF DEEDS
PROVINCE OF ZAMBALES

A PARCEL OF LAND CONTAINING AN AREA OF NINETY-FIVE

HECTARES, SIXTY-ONE ACRES AND TWENTY-THREE
CENTARES SITUATED IN THE BARRIO OF STO. ROSARIO,
MASINLOC, ZAMBALES.

WHEREAS, the Lessor has granted and the Lessees have

accepted a lease of the above-described property under the terms
and conditions hereinafter provided;

NOW, THEREFORE, for and in consideration of the above

premises and in consideration of the terms and conditions hereinafter
specified the parties herein do hereby agree and stipulate as follows:

1. The terms of this lease shall be five (5) years effective May 1,
1989 and shall terminate on May 1, 1994 and is not renewable after
said term unless renewed in writing by both parties;

2. The Lessees have agreed to lease five (5) lots of fishponds, one
nursery pond, all the 331 saltbeds and the “Paalatan” located within
the described property under Certificate Titles No. T-1747;

3. The lease does not include the bodega located within the leased
premises which is to be used exclusively by the Lessor unless with
written approval of the Lessor, the Lessee may share in the use of
the bodega;

4. The Leessees shall make a deposit of ONE HUNDRED

THOUSAND PESOS (P100,000.00) Philippine Currency upon signing
of this Contract of Lease. Said deposit is without interest and shall
answer for any unpaid rental of the Lessees at the termination of this
lease, penalties or any liabilities which may incur during the effectivity
of this Contract. The Lessees cannot apply the aforesaid deposit as
rental payment before the cancellation, termination or expiration of
this agreement;

5. The Lessees shall pay to the Lessor immediately upon signing of

this Contract the amount of THREE HUNDRED FIFTY THOUSAND
PESOS (P350,000.00), Philippine Currency as rental for the year
May 1, 1989 to May 1, 1990. This payment is not refundable and will
be forfeited in the event the Lessees cancel this Contract of Lease
prior to May 1, 1990;

6. The Lessees shall pay to the Lessor the yearly advance rental in
Philippine Currency at the office of the Lessor which shall be due and
payable on or before the 1st of March of every year for five (5) years
without the necessity of express demand, therefore it being
understood that in case of default of said Lessees in the payment of
the said rental if and when the same becomes due and payable, the
amount of rental owing shall bear interest at the rate of twenty-four
percent (24%) per annum, to be computed daily from the date of such
default until fully paid, payment of such interest to be considered as a
penalty by reason of such default, without prejudice to the right of the
owner to terminate this Contract and eject the Lessees, as hereinafter
set forth;

That the Schedule of Payment of the annual lease cash payment

of rentals are as follows:

a) May 1, 1989 or upon signing of this Contract of Lease:

P350,000.00 rental for May 1, 1989 to May 1, 1990

b) March 1, 1990 … P400,000.00 rental for May 1, 1990 to

May 1, 1991;

c) March 1, 1991 … P440,000.00 rental of May 1, 1991 to

May 1, 1992;

d) March 1, 1992 … P484,000.00 rental of May 1, 1992 to

May 1, 1993;

e) March 1, 1993 … P532,400.00 rental of May 1, 1994;

The Lessees shall in addition to the cash rental referred to the

above, pay to the Lessor Seven Thousand (7,000) cavans of salt
measured at four (4) tin cans, size of four gallons of 16 liters per can,
per cavan yearly, starting the year 1990 up to and including the year
1994. The Lessees shall deliver the aforesaid salt to the Lessor from
the time the Lessees commences to harvest salt, provided that the
7,000 cavans should already be delivered to the Lessor by the end of
the harvest season in May of a particular year. In the event that the
Lessees cannot or fail to deliver the 7,000 cavans of salt in full or in
part, the Lessees are obliged to pay whatever difference in cash at
the prevailing market value at the end of harvest in May of a
particular year;

7. That the personal character and integrity of the Lessees and the
nature of the occupancy of the leased property as above restricted
are special considerations and inducements for granting this lease by
the Lessor; consequently, the Lessees shall not sub-let the property,
nor allow any person, firm or corporation to occupy the same in whole
or in part, nor shall the Lessees assign in whole or in part any of their
right under this Contract and no right or interest thereto or therein
shall be conferred on or vested in anyone by the Lessees, either by
operation of law or otherwise;

8. Failure on the part of the Lessees to pay within its stipulated due
period or failure to observe any of the conditions of this Agreement,
shall entitle the Lessor to terminate this Agreement immediately and
to forefeit the deposit of One Hundred Thousand Pesos
(P100,000.00) and demand that the Lessees vacate the leased
property;

9. In the event that the Lessees shall elect to terminate this

Agreement before its expiration, the One Hundred Thousand Pesos
(P100,000.00) deposit will be forfeited in favor of the Lessorr;

10. The Lessees shall at their own expense, improve and develop
the aforesaid fishponds and to keep up and maintain in good repair
and condition all fences, dikes, saltbeds and other improvements
existing thereon by (a) raising and keeping the elevation of the
“pilapil” inside the fishpond to 1 1/2 meters high and 2 meters height
to the “pilapil” constituting the boundary of the fishponds and those
fronting the river and a width of 2 meters for all the “pilapil”; (b) to
repair all the 331 saltbeds with “tisa” and wooden division saltbeds;
(c) to clean and clear the whole area of the leased premises by
removing all the bushes, weeds and cogons, provided, moreover, that
the Lessees are obliged to maintain throughout the effectivity of this
Lease, the said elevation and cleanliness of the leased premises.
The Lessees shall make improvements not less than 25% every year
and thereafter for the duration of this contract. That all the
improvements and development made by the Lessees shall after the
expiration of this Lease belong to the Lessor.

In the event that the Lessees shall fail and/or refuse to make the
aforesaid improvements and/or clean the leased premises as herein
provided, the Lessor shall have the right to cancel and terminate this
Agreement without prejudice to the right of the Lessor or itself make
the required improvements, and cleaning and utilizing for said
purpose, the deposit of P100,000.00 in which event, the Lessor is
obliged to notify the Lessees of said use, and the amount so used
within fifteen (15) days from said notice, the Lessees shall be obliged
to replenish the said amount of deposit of P100,000.00. Failure of
the Lessees to replenish the said amount shall entitle the Lessor to
cancel or terminate this Agreement;

11. Except as heretofore stipulated on, the Lessees are prohibited

from using the property or portion thereof for any other purpose
except as fishpond or saltbeds and from subleasing the property
herein lease, or any other portion thereof, or from assigning their
rights under this Contract of Lease, or mortgaging or otherwise
encumbering the same, without the express written consent of the
Lessor;

12. That the Contract of Lease between the Lessor and the Lessees
is entirely a civil lease of a fishpond and not in any manner to be
construed or misunderstood to be agrarian in nature and extent.
Labor disputes and wages regarding hired workers or laborers of the
Lessees in the operation and maintenance of the Lease, shall not be
the responsibility of the Lessor, including any claim pertaining to labor
problems but the Lessees will be held solely liable for the settlement
and/or payment of the wages and claims;

13. The Lessor shall be solely liable for the payment of only the
realty taxes on the leased premises while the Lessees shall answer
and be liable for the payment of the fees for business licenses and
permits and other business taxes be due to the government from the
operation of fishponds and saltbeds;

14. The Lessor, through its authorized representative, is entitled to

make an inspection of the leased premises at any time during the day
time;

15. In the event, the Lessees cancel or terminate this Contract of

Lease on their own volition prior to May 1, 1994, they are not entitled
to any refund of any rentals already paid by them to the Lessor, as
well as to the deposit;

16. Upon the termination, expiration or cancellation of this Contract

of Lease, the Lessor shall automatically take possession of the
leased premises and the Lessees shall, without need of any demand
and without any need of court action, vacate the premises and
surrender possession thereof to the Lessor, including the
improvements shall appertaining complete ownership to the Lessor,
upon the introduction of the said improvements;

17. In the event that the Lessees violated and/or fail to refuse to
abide by and comply with the terms and conditions of this Agreement
or failure to pay within its stipulated due period, the deposit of the
Lessees in the amount of P100,000.00 shall be forfeited in favor of
the Lessor and the latter shall have the right to cancel and terminate
this Contract immediately and to secure from the Court a writ of
execution or other order for the enforcement of the terms hereof
against the Lessees, all expenses including sheriff’s fees, incurred by
the Lessor for securing said writ or/and for enforcing the same as well
as liquidated damages shall be borne solely by the Lessees;

18. That in the event the Lessees fail to vacate or leave the leased
premises voluntarily after the termination of the leased contract,
notwithstanding demands made on them by the Lessor, and insist
and ignore the demands, the Lessees shall pay the Lessor jointly and
severally unrealized income and profit in point of unpaid rentals for
overstaying in the leased premises without any legal right or interest
whatsoever, in the amount of the reasonable use and benefit of the
leased premises to be computed by the Lessor, based on double the
rentals of the last year of Contract of Lease plus legal interest, until
the Lessees vacate the leased premises;

19. That if the said property is not surrendered to the Lessor in the
manner provided for in this Contract, the Lessees shall be
responsible to the Lessor for all damages which the Lessor may
suffer by reason thereof and shall indemnify the Lessor against any
and all claims made by the succeeding tenants against the Lessor,
resulting from delay by the Lessor in delivering possession of the
property;

20. In case of the default of the Lessees in their obligations under

this Contract of Lease, the Lessees agrees to pay the sum equivalent
of 25% of the amount due from them as liquidated damages as
attorney’s fee aside from court costs, should the Lessor be
constrained to resort to court from the enforcement of its rights under
the Contract;

21. In case the Philippine Pesos is officially devalued, all payments

to be made by the Lessees to the Lessor after such devaluation shall
be made in amounts properly readjusted and proportionately
increased in accordance with or on the basis of the official value of
the peso at the time of the execution of this lease contract;

22. The Lessees hereby agree that any question which may arise
between the Lessor and the Lessees by reason of this document and
which has to be submitted for decision to the court of justice, may at
the option of the Lessor be brought before the court of competent
jurisdiction in the City of Manila, waiving for this purpose other proper
venue;

23. The Lessees shall jointly and severally be liable for any liability or
liabilities pertaining to the Lessor concerning the relationship and its
stipulations entered into in this Contract of Lease;

24. This Contract of Lease cancelled and superseded, the Contract

of Lease signed by the Lessor and Mr. David Jimenez on May 20,
1985 and notarized by Francisco Agustin for and in behalf of the City
of Manila and appearing in the notarial register as Document No. 431,
Page No. 45, Book No. XII, Series of 1985;

25. The parties herein hereby attest and confirm that the terms and
conditions of the Contract of Lease and the effect thereof have been
explained to them to their satisfaction and that they fully understand
the same.
 IN WITNESS WHEREOF, the parties have hereunto affixed
their signatures this 28th day of April, 1989 at the City of Manila,
Philippines.

PAG-ASA FISHPOND CORPORATION

Lessor

___________ Sgd___________
MR. SEGUNDO SEANGIO-President

____ Sgd____________ _____ Sgd____________

DAVID JIMENEZ-Lessee NOEL HILARIO – Lessee

WITNESSESS

___________ Sgd___________ _____ Sgd____________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES) S.S.

CITY OF MANILA )

BEFORE ME, a Notary Public for and in the City of Manila,

Philippines, personally appeared the following persons with their
respective Residence Certificates, to wit:

SEGUNDO SEANGIO A-4328120 Manila, January 3, 1989

DAVID JIMENEZ A-03704324 Bulacan, Obando
February 17, 1989
NOEL HILARIO A-11107684 Lawa, Obando, Bulacan
May 5, 1989

known to me and to me known to be the same persons who executed

the aforegoing instrument and have acknowledged before me that the
same is their free and voluntary act and deed.

This document consists of eight (8) pages, signed by the

parties and their instrumental witnesses on every page refers to a
Contract of Lease that Real Property situated at Sto. Rosario,
Masinloc, Zambales.

WITNESS MY HAND AND SEAL THIS 9TH DAY OF MAY,

1989.

ROBERTO M. MENDOZA
Notary Public
Until December 31, 1989
PTR No. 52454710
TAN 4784-113-M

Doc. No. 422

Page No. 86
Book No. XIX
Series of 1989.