“O” verbally leased his house and lot to “L” for two (2) years at a monthly rental of P2,500.00 a month. After the first year, “O” demanded a rental of P5000.00 claiming that due to the energy crisis, with the sudden increase of the price of oil, which no one expected, there was also a general increase in prices. “O” proved an inflation rate of 100%. When “L” refused to vacate the house, “O” brought an action for ejectment. “O” denied that they had agreed to a lease for two (2) years. A.) Can the lessee testify on a verbal contract of lease? Reasons. b.) Assuming that “O” admits the two (2)-year contract, is he justified in increasing the rental? Why?
“O” verbally leased his house and lot to “L” for two (2) years at a monthly rental of P2,500.00 a month. After the first year, “O” demanded a rental of P5000.00 claiming that due to the energy crisis, with the sudden increase of the price of oil, which no one expected, there was also a general increase in prices. “O” proved an inflation rate of 100%. When “L” refused to vacate the house, “O” brought an action for ejectment. “O” denied that they had agreed to a lease for two (2) years. A.) Can the lessee testify on a verbal contract of lease? Reasons. b.) Assuming that “O” admits the two (2)-year contract, is he justified in increasing the rental? Why?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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“O” verbally leased his house and lot to “L” for two (2) years at a monthly rental of P2,500.00 a month. After the first year, “O” demanded a rental of P5000.00 claiming that due to the energy crisis, with the sudden increase of the price of oil, which no one expected, there was also a general increase in prices. “O” proved an inflation rate of 100%. When “L” refused to vacate the house, “O” brought an action for ejectment. “O” denied that they had agreed to a lease for two (2) years.
A.) Can the lessee testify on a verbal contract of lease? Reasons.
b.) Assuming that “O” admits the two (2)-year contract, is he justified in increasing the rental? Why?
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