Practice question
A qualifying foreign-investor lease contains a clause allowing renewal solely at the lessee’s option on the original terms. The lessee invokes the amended Investors’ Lease Act as authority for unilateral renewal regardless of the lessor’s agreement. Assume any aggregate-duration and other conditions would otherwise be met. What does the amended limitation provide?
- Renewal is automatically unlimited
- The lessor’s title is automatically transferred
- The private option overrides every statutory condition
- Only the lessee’s nationality controls
- Such a renewal clause is interpreted as renewable upon mutual agreement of the parties
Legal references
- RA 12252, September 3, 2025, amending RA 7652: https://lawphil.net/statutes/repacts/ra2025/ra_12252_2025.html; Section 4, amended Section 5(3)–(4).
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