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Arevalo Gomez Corp. vs Andres Lao Hian Liong, et al.

AREVALO GOMEZ CORPORATION, petitioners, vs. ANDRES LAO HIAN LIONG, doing business in the name and style of "TIONGSON BAZAAR" and The Honorable SALVADOR J. VALDEZ, JR., respondents.

G.R. No. 70360 | 1987-03-11

D E C I S I O N

CRUZ, J p:

Some agreements deteriorate into misunderstandings, turning close friends into irreconcilable adversaries and sweet harmony into bitter discord. This is one of them.

On December 1, 1964, the petitioner through its Vice President, Renato Arevalo, and respondent Andres Lao Hian Liong, executed a "Contract of Lease" covering the petitioner's property at Magsaysay Avenue, Baguio City, for a term of fifteen years, effective September 1, 1964. The monthly rental was fixed at P2,450.00 but in addition to this the respondent agreed to construct on the interior portion of the land leased a three-storey building of...