[Solved] Is a stipulation in a contract of lease granting the lessee an exclusive right to renew the contract valid?

Q.	Is a stipulation in a contract of lease granting the lessee an exclusive right to renew the contract valid?
A.	No, because it is violative of the principle of mutuality of contracts;
B.	No, because validity or compliance cannot be left to the will of only one of the parties;
C.	Yes, it is fundamentally part of the consideration in the contract. (Allied Bank v. CA, January 16, 1998)
D.	No, it is contrary to law.
Answer» C. Yes, it is fundamentally part of the consideration in the contract. (Allied Bank v. CA, January 16, 1998)

2.9k

Do you find this helpful?

View all MCQs in

Philippines Civil Law Society

Discussion

No comments yet

Related MCQs

X and Y executed a contract of lease, which provides as follows: “In the event that the lessee fails to pay on or before the due date of payment herein specified, the contract is deemed automatically terminated” and the lessee can be evicted without need of judicial order. Suppose that Y, the lessee fails to pay the rentals after giving a demand letter, may X, the lessor evict Y immediately?
A contract of lease was entered into between A & B with a provision that it is for a period of 5 years renewable for another 5 years. The contract expired on June 30, 2010 but up to now, the lessee is still in possession of the premises. What does the implicit renewal of the contract mean?
A & B entered into a contract of lease over A’s house and lot. Without the consent of A, B assigned the lease to C. Is the assignment valid?
A entered into a contract of loan with a bank. They stipulated that if there will be a law or BSP circular that will allow the increase in the interest rate, the bank will increase it. Is the stipulation valid?
Magdalene and Shantung Company entered into a contract of agency before the consul general of the Philippines in Singapore. They stipulated that Magdalene shall be the administrator of the real properties of Shantung Company in the said country. By virtue of the said contract, Magdalene sold the 1 hectare land of Shantung Company located in Singapore to Mayhem Real Estate Corporation without any special power of attorney. The said contract of sale was executed before the vice consul of the Philippines in Singapore. Under the laws of Singapore, the sale of a real property by an agent without a special power of attorney is valid. Shantung Company filed a suit for the annulment of the contract of sale on the ground that Magdalene has no authority to sell the property. If you were the judge, which of the following courses of action should you take?
A leased his house and lot to B with “option to renew.” How will the contract be renewed?
X leased real property situated in Malate, Manila which is owned by A. During the period of lease, X introduced improvements. Upon the expiration of the lease, A demanded X to vacate the premises but not appropriate the improvement. Is X entitled to reimbursement of the improvements?
A was employed by ABC Co. as manager in Metro Manila subject to the condition that if A will be severed from the company, voluntarily or involuntarily, he cannot get involved in any business of the same nature with ABC’s business in Metro Manila within a period of six (6) months from severance. Is the stipulation valid?
A school granted scholarship to EC but subject to the condition that if he will transfer to another school, he will refund all benefits he has already enjoyed. Is the stipulation valid?
A lent money to B in the amount of P3M and executed a mortgage over his house and lot to secure the payment of the obligation with a condition that if he fails to pay, A shall became the owner of the property. Is the stipulation valid?