Daniel T. So v. Food Fest Land · G.R. 183628

Petitioner: Daniel T. So
Respondent: Food Fest Land
Citation: G.R. No. 183628
Court: Supreme Court
Division: First Division
Ponente: Carpio Morales, J.
Decided: April 7, 2010

Summary

This consolidated case involves a commercial lease dispute between lessor Daniel T. So and lessee Food Fest Land, Inc. over a three-year lease for KFC operations in Makati City. Food Fest secured initial permits but failed to renew its barangay business clearance for 2000, preventing business operations. Food Fest stopped paying rent and vacated in March 2001, claiming the lease was terminated due to impossibility of performance. The Supreme Court rejected Food Fest's defense based on the doctrine of unforeseen events (rebus sic stantibus), ruling that the preliminary agreement's permit condition applied only to initial applications, not renewals. The Court affirmed Food Fest's obligation to pay unpaid rentals with penalties and damages, emphasizing that contracts once perfected are binding and parties cannot renege from freely assumed obligations. The decision reinforces the sanctity of contracts and limits the application of supervening impossibility doctrines to truly exceptional circumstances.

Statutes applied

Civil Code, Art. 1267

Related cases

Other Philippine cases on the same provisions and issues.

Comglasco Corporation/Aguila Glass v. Santos Car Check Center Corporation G.R. No. 202989
Ildelfonso Doronila v. Jose Lopez G.R. No. 1293
Iloilo Jar Corporation v. Comglasco Corporation/Aguila Glass G.R. No. 219509
Tagaytay Realty Co. v. Arturo G. Gacutan G.R. No. 160033
Eastern Telecommunications Philippines v. Eastern Telecoms Employees Union G.R. No. 185665
Jesusito D. Legaspi v. Republic of the Philippines G.R. No. 160653

By the Intellegal Editorial Board · April 7, 2010

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