Doroteo Cortes v. Dy-Jia

Summary

This case involves a lease dispute where plaintiff Doroteo Cortes leased Manila property to Dy-Jia and Dy-Guico under a contract prohibiting subleasing. The lessees allegedly acted as agents for Li Tsung Ling (Dy-Chuanding), who claimed real ownership and paid rent to Cortes from 1902-1904. When Cortes discovered the arrangement in January 1904, he accepted one more rent payment then filed suit seeking rescission and building ownership for contract violation. The Supreme Court reversed the lower court's judgment favoring Cortes, holding that by accepting rent from Li Tsung Ling with knowledge of the assignment, Cortes impliedly consented to it and waived his right to claim forfeiture. The Court emphasized that lessor consent to assignment need not be express but can be shown through conduct recognizing the assignee as tenant. This case establishes important precedent on implied consent in lease assignments and waiver of contractual forfeitures.