Practice question
A tenant signed a clause giving the landlord unfettered power to choose any future escalation rate without a reasonable determining means. The landlord says the signature alone makes that future unbridled discretion binding. Apply Gotesco.
- Initial agreement does not immunize a wholly potestative escalation power from Article 1308’s mutuality limit
- Every signed clause overrides mandatory law
- Only the landlord’s intent matters
- A fee may never be reviewed after payment begins
- The tenant’s surname controls
Legal references
- Gotesco Properties, Inc. v. Cua, G.R. Nos.228513 and 228552, February 15, 2023, MAIN decision: https://lawphil.net/judjuris/juri2023/feb2023/gr_228513_2023.html
- Civil Code, Articles 1159,1191,1249,1308,1314-1316,1319,1322-1326,1933-1934,1962 and1980: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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