Naga telephone company vs ca digest

Legal Assistant or Paralegal or Administrative Assistant. Jump to Page. Search inside document. Petition denied.

CA decision affirmed. Maya Julieta Catacutan-Estabillo. Kelsey Olivar Mendoza. Gear Arellano II. Fides Damasco. Dia Santos. Ella Tho. Kenneth Peter Molave. Lariza Aidie Reynalda Ugsod. Rafael Conejos. Latjing Soliman. Mae Ann Sarte Acha. Mikey Go. Chrys Barcena. Janz Serrano. More From Sui.

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Tolentino, Article states in our law the doctrine of unforseen events. This is said to be based on the discredited theory of rebus sic stantibus in public international law; under this theory, the parties stipulate in the light of certain prevailing conditions, and once these conditions cease to exist the contract also ceases to exist.

Considering practical needs and the demands of equity and good faith, the disappearance of the basis of a contract gives rise to a right to relief in favor of the party prejudiced. The allegations in private respondent's complaint and the evidence it has presented sufficiently made out a cause of action under Article The Court, therefore, release the parties from their correlative obligations under the contract. However, the disposition of the present controversy does not end here. The Court has to take into account the possible consequences of merely releasing the parties therefrom: The Court shall not allow such eventuality.

Rather, the Court requires, as ordered by the trial court: By way of emphasis, the Court reiterates the rationalization of respondent court that: In affirming said ruling, we are not making a new contract for the parties herein, but we find it necessary to do so in order not to disrupt the basic and essential services being rendered by both parties herein to the public and to avoid unjust enrichment by appellant at the expense of plaintiff. Decision affirmed.

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