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Pryce Corporation vs Philippine Amusement and Gaming Corporation

PRYCE CORPORATION (formerly PRYCE PROPERTIES CORPORATION), Petitioner, versus PHILIPPINE AMUSEMENT AND GAMING CORPORATION, Respondent.

G.R. No. 157480 | 2005-05-06

D E C I S I O N 


PANGANIBAN, J.: 

In legal contemplation, the termination of a contract is not equivalent to its rescission. When an agreement is terminated, it is deemed valid at inception. Prior to termination, the contract binds the parties, who are thus obliged to observe its provisions. However, when it is rescinded, it is deemed inexistent, and the parties are returned to their status quo ante. Hence, there is mutual restitution of benefits received. The consequences of termination may be anticipated and provided for by the contract. As long as the terms of the contract are not contrary to law, morals, good customs, public...