Practice question
An ordinary resource agreement has a lawful twenty-five-year initial term and proposes a renewal for forty more years. The contractor argues compliance with the initial limit makes every renewal period valid. No separate constitutional route is claimed. Which is correct?
- The initial term removes all renewal limits
- A contractor’s request controls the constitutional maximum
- Renewal is always forbidden even for one year
- Section 2 separately limits renewal to not more than twenty-five years, so the proposed forty-year renewal exceeds that limit
- The Constitution requires a ninety-nine-year renewal
Legal references
- 1987 Constitution: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/3/353; Article XII, Section 2.
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