Enrique Legarda Koh v. Lucio Ongsiaco

Summary

This case involves a lease contract dispute between Enrique Legarda Koh (lessee) and Lucio Ongsiaco (lessor) over the interpretation of an extension clause. The original lease contract for Manila apartments contained the word 'extendible,' but defendant claimed it was subject to mutual consent by adding 'at the will of both parties.' The Supreme Court found this phrase was fraudulently inserted after execution and held that 'extendible' created a unilateral promise giving the lessee the right to extend the lease. When defendant wrongfully took possession despite plaintiff's timely notice of extension, plaintiff lost P85 monthly profit from subleasing. The Court awarded P1,020 damages for twelve months of lost profits, establishing important precedent on lease contract interpretation and the binding nature of extension clauses in favor of lessees.