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Which should be honored the clauses in the renewal contract or clauses from the old contract!

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Choi


Arresto Menor
Good day!

My 2-yr lease contract ended last December 11, 2011. I renewed my contract for 6 months (until june 2012). Issued 5 PDCs, and paid cash the first month rental fee.

I was planning to sell my business that time and gave myself 6months to sell it otherwise ill close my business down. I informed my landlord and the agent regarding my plan before I renew my contract.

On the original contract, there is a clause that all payments made (security deposits) will be forfeited in case I fail to finish my contract. However, on the renewal contract the agent (who has the SPA given by the owner) that this clause from the initial contract will change, stated that I will get all my payments even if I fail to finish the contract.

The contract is notarized.

Fortunately, I was able sell my business early last month and the unit gave the new owner of my business a new 2-yr lease contract. However, when I'm about to get my deposits for my refund, they refused to give 100% of my deposits. I have no pending dues to pay.

Their reason is that I did not finish my contract thus I can't get my deposit. I refer to the new contract and they say they won't honor that and they refer to the first contract. Which I believe is not right.

I supposed to get my refund last march 15. Until now they are not giving me the amount. What is the best way to do. Should I approach the barangay to settle this? Should I seek legal help from the PAO of our municipality?

Please help.

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Almondo


Arresto Mayor
Im not a Lawyer,,,, go and ask Free Government Lawyer,,,, or Fiscal, Public Prosercuter.... You can File in Small Claim Court,,, No Lawyers allowed there,, just you and the person that didnt pay you..

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taxconsultantdavao


Reclusion Perpetua
YOU SAID THAT :

1. On the original contract, there is a clause that all payments made (security deposits) will be forfeited in case I fail to finish my contract.

2. on the renewal contract the agent (who has the SPA given by the owner) that this clause from the initial contract will change, stated that I will get all my payments even if I fail to finish the contract.
[u]

you better a consult a lawyer who is your friend. he might be able to read , study, and analyze the old and new contracts much better than us who are just relying on the facts given by you.

tentatively and relying on the facts that you have given, the life of the original /old contract has already been terminated. or the fact that a new contract was executed, you and the unit owner have the clear intention that the new contract shall now govern your future lessor-lessee relations for another 6 months. otherwise, there would have been no need to execute a new contract.

hence, the old provision that all payments shall be forfeited in favor of the owner has already been abandoned in the new contrct. in fact , the old provision of forfeiture was already not included in the new contract. not only was it not written, there was this provision totally in conflict with the forfeiture provision. the new contract provides that you will get the money should you fail to finish the contract.

my advice on this one is that you can get the money that was not due to the owner :
1. because it was clearly written on the new contract.

if you dont assert your right, you will never get that money that should have belonged to you.



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Almondo


Arresto Mayor
Im sure its the NEW CONTRACT that replaced the old contract,,, the old contact has already expired and was replaced by a NEW CONTRACT,,,

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Choi


Arresto Menor
Here are the exact words written in the RENEWAL CONTRAC... basically all terms in the FIRST OR ORIGINAL CONTRACT except for the amendments...

------
Whereas the LESSOR and LESSEE entered into a lease agreement which started on the 10th day of December 2009 and expires on the 10th day of December 2011 (hereinafter referred to as the "Original Agreement").

Whereas the LESSOR and LESSEE hereby agree to renew the Original Agreement for a further initial term of 6 months(s) commencing on the 11th day of December 2011 and ending at midnight on the 10th day of June 2012 (hereinafter referred to as the "Renewal Term") and renewable thereafter.

Whereas the LESSOR and LESSER hereby agree that all the terms and conditions of the Original Agreement shall remain in full force and effect, except for the following amendments:
a) The monthly rental during the Renewal Term is an amount of Php 14,980 (Fourteen thousand nine-hundred eighty Pesos).
b) One month advance of Php 14,980 for December 11, 2011 rental with 5 post-dated cheques for five (5) months shall be given by the LESSEE upon signing of the Lease Agreement.
c) In case of discontinue Lease Agreement All payments made shall be refundable upon clearance.

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taxconsultantdavao


Reclusion Perpetua
you better consult a laywer near ur place for a proper advice.


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attyLLL


moderator
so the agent said that it would not apply, but on the written contract it is still there?


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