Manahan, Jr. vs. Court of Appeals
Manahan, Jr. vs. Court of Appeals
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* FIRST DIVISION.
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204
VITUG, J.:
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3 Exh. A.
4 Exh. B.
5 The agreement was not attached to the records.
6 Exh. D.
7 Exh. D.
8 Presided by Judge Eutropio Migriño.
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“That in or about and during the period from April 30, 1976 and
September 7, 1976, in the Municipality of Makati, Metro Manila,
Philippines and within the jurisdiction of this Honorable Court,
the above-named accused, in accordance to a Lease Agreement
received from IFC-LEASING AND ACCEPTANCE
CORPORATION One (1) Unit Isuzu Dump Truck and One (1)
Unit Kimco Hough JH65CN Payloader all valued at P110,000.00,
with the obligation to pay rentals as agreed upon and to return
the said equipments upon termination of the lease period, but
accused far from complying with his obligation, with intent of
gain, grave abuse of confidence and to defraud the herein
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11 Exh. A.
12 Exh. B.
13 Exh. C.
14 TSN, January 9, 1985, p. 6.
15 Exh. F.
16 TSN, May 8, 1985, p. 3.
17 TSN, March 3, 1988, p. 3.
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“x x x x x x x x x.
“ ‘All the foregoing elements are present in this case. The dump truck, a
personal property was received by the accused who was under obligation
to pay rentals as agreed upon and to return the said equipment upon the
termination of the lease period. Accused did not return the equipment to
the offended party as accused subleased it to a certain Mr. Gorospe,
although accused has no authority to sub-lease the equipment to a third
person. Granting therefore that Manuel Manahan, Jr. has no intention of
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“2. UTILITY: The Lessee agrees that the equipment under lease
shall be installed and/or utilized at its premises in Manila or such
other places as may be designated in the Schedule, and shall not,
under any circumstances be removed therefrom without the
consent of the Lessor first obtained in writing. The Lessee further
agrees not to part with the possession of, sub-lease, pledge, or
otherwise encumber or dispose of the leased equipment; x x x. If
Lessee uses or allows the leased property to be used for illegal
purposes or for purposes not permitted under this lease, Lessee
agrees to reimburse Lessor for all damages sustained by Lessor as
a result of such misuse including, without limitations, payment of
any fine or fines which may be imposed on Lessor. In addition to,
and notwithstanding its right to such reimbursement, Lessor may
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26 Records, p. 154.
27 “Art. 1659. If the lessor or the lessee should not comply with the
obligations set forth in Articles 1654 and 1657, the aggrieved party may
ask for the rescission of the contract and indemnification for damages, or
only the latter, allowing the contract to remain in force.”
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28 “Art. 1670. If at the end of the contract the lessee should continue enjoying
the thing leased for fifteen days with the acquiescence of the lessor, and unless a
notice to the contrary by either party has previously been given, it is understood
that there is an implied new lease, not for the period of the original contract, but
for the time established in Articles 1682 and 1687. The other terms of the original
contract shall be revived.”
While the Civil Code contains no special provisions covering personal property,
its provisions, however, on the lease of real property which are not peculiar to
immovable property could be made applicable.
29 “Art. 1671. If the lessee continue enjoying the thing after the expiration of
the contract, over the lessor’s objection, the former shall be subject to the
responsibilities of a possessor in bad faith.”
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