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Nissan Car Lease Phils., Inc. vs. Lica Management, Inc.

The Supreme Court ruled in favor of Lica Management, Inc. (LMI) regarding the extrajudicial rescission of a lease contract with Nissan Car Lease Phils., Inc. (NCLPI) due to NCLPI's delinquency in rental payments. The court ordered NCLPI to pay unpaid rentals, awarded damages, and mandated the return of the security deposit with interest. The decision emphasized that a contractual provision for 'automatic rescission' is valid without the need for written notice or judicial action if the terms are clear.

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Manalese, L.M.
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34 views1 page

Nissan Car Lease Phils., Inc. vs. Lica Management, Inc.

The Supreme Court ruled in favor of Lica Management, Inc. (LMI) regarding the extrajudicial rescission of a lease contract with Nissan Car Lease Phils., Inc. (NCLPI) due to NCLPI's delinquency in rental payments. The court ordered NCLPI to pay unpaid rentals, awarded damages, and mandated the return of the security deposit with interest. The decision emphasized that a contractual provision for 'automatic rescission' is valid without the need for written notice or judicial action if the terms are clear.

Uploaded by

Manalese, L.M.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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G.R. No.

176986 | January 13, 2016


NISSAN CAR LEASE PHILS., INC., petitioner, vs. LICA MANAGEMENT, INC. and
PROTON PILIPINAS, INC., respondents
JARDELEZA, J:

FACTS:
NCLPI entered a ten-year lease contract with LMI for Makati City property, but became
delinquent, leading to termination and LMI entering a lease with Proton Pilipinas.

ISSUE:
Whether there was a valid extrajudicial rescission of the lease contract

HELD:
The Supreme Court upheld LMI's extrajudicial rescission of the lease contract, ordered
NCLPI to pay unpaid rentals, awarded damages, and ordered the return of the security deposit
with interest.

DOCTRINE / APPLICABLE PROVISIONS:


Breach of obligation under contract of lease. NCLPI breached its obligations under the lease
contract by non-payment of rentals, signing a promissory note, and providing postdated checks.

principle that a contractual provision allowing "automatic rescission" is valid, but the
remedy for the aggrieved party is to go to court for the cancellation of the rescission if it is
found unjustified.No written notice required though judicial action not necessary for

there is no ambiguity
rescission.

in the words, there


should be no room for
construction
NPC V. CA | Manalese, L.M.

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