Rosa Fojas v. Pantaleon Velasco

Summary

This case involved a lease dispute between property owners and long-term lessees who had made substantial improvements. Rosa Fojas and her husband claimed an oral agreement extending their lease for ten years, while the landowners sought to increase rent from P43 to P100 monthly. The Supreme Court affirmed the trial court's dismissal of the lessees' claims, ruling that the alleged oral lease modification violated the Statute of Frauds as it exceeded one year. Under Civil Code articles 1573 and 487, the Court held that upon lease termination, lessees could remove their improvements provided they restored the property to its original condition. The decision established important precedent regarding oral lease modifications and lessees' rights to improvements on leased property.