ObliCon Case Digest - Eleizegui vs. Lawn Tennis Club
ObliCon Case Digest - Eleizegui vs. Lawn Tennis Club
ObliCon Case Digest - Eleizegui vs. Lawn Tennis Club
EN BANC
ARELLANO, C. J.:
NATURE OF ACTION
This is a complaint concerning the lease agreement on a piece of land filed by Dario and
Gaudencio Eleizegui.
FACTS
The main issue in the case is the duration of the lease. The lower court ruled in favor of
the plaintiffs, stating that the lease was terminated by the notice given by the plaintiffs.
The plaintiffs argued that the lease could be terminated by the will of the lessee, citing
Article 1581 of the Civil Code. The Supreme Court rejected this argument and held that
Article 1581 does not apply to a lease where the termination is expressly left to the will
of the lessee. The court stated that the term of such a lease must be fixed by the courts
according to the character and conditions of the mutual undertakings, in accordance
with Article 1128 of the Civil Code. The court concluded that the lease could only be
terminated by the will of the lessee and not by the lessor. The court also addressed the
argument that the lease could be perpetual. The court stated that while the lease did
not explicitly state a duration, it should be interpreted as temporary in nature, as leases
are by their nature temporary. The court emphasized that the lease should not be
terminated at the will of the lessor.
ISSUE
Whether or not the lease agreement can be terminated by the will of the lessee.
RULING
NO. The lease agreement cannot be terminated by the will of the lessee.
The Civil Code has made provision for such a case in all kinds of obligations. In speaking
in general of obligations with a term it has supplied the deficiency of the former law with
respect to the "duration of the term when it has been left to the will of the debtor," and
provides that in this case the term shall be fixed by the courts. (Art. 1128, sec. 2.) In
every contract, as laid down by the authorities, there is always a creditor who is entitled
to demand the performance, and a debtor upon whom rests the obligation to perform
the undertaking. In bilateral contracts the contracting parties are mutually creditors and
debtors. Thus, in this contract of lease, the lessee is the creditor with respect to the
rights enumerated in article 1554 and is the debtor with respect to the obligations
imposed by articles 1555 and 1561. The term within which performance of the latter
obligation is due is what has been left to the will of the debtor. This term it is which must
be fixed by the courts.