Question

A foreign company, XYZ Corporation, entered into a business contract with a Philippine-based company, ABC Enterprises. The contract contained a clause stipulating that any disputes arising from the contract shall be governed by Philippine law and subject to the exclusive jurisdiction of the Philippine courts.

Due to unforeseen circumstances, XYZ Corporation, failed to comply with certain obligations under the contract within the agreed timeframe. ABC Enterprises, therefore, notified XYZ Corporation of its intention to terminate the contract and seek legal remedies for the breach.

XYZ Corporation, however, argues that the notification of termination is invalid because it was not done within the prescribed legal period. They claim that based on Art. 13 of the Civil Code, they should have been given an additional period of 15 days to cure the breach before ABC Enterprises can terminate the contract.

Considering the given scenario and the applicable laws, do you agree with the argument of XYZ Corporation? Explain your answer and discuss the effect and application of legal periods in the Philippines.