Saturday, July 14, 2012

RECIPROCAL OBLIGATIONS - G.R. No. 192885

G.R. No. 192885

"x x x.


From the above findings of the CA, it is apparent that the questioned provisions of the contract are reciprocal in nature.  Reciprocal obligations are those which arise from the same cause, and in which each party is a debtor and a creditor of the other, such that the obligation of one is dependent upon the obligation of the other.[12] They are to be performed simultaneously such that the performance of one is conditioned upon the simultaneous fulfillment of the other.[13]  For one party to demand the performance of the obligation of the other party, the former must also perform its own obligation. Accordingly, petitioner, not having provided the services that would require the payment of service fees as stipulated in the Lease Development Agreement, is not entitled to collect the same.

         Based on all of the above disquisitions, it is therefore clear that the CA did not commit any grave abuse of discretion in affirming the decision of the RTC.  The termgrave abuse of discretion is defined as a capricious and whimsical exercise of judgment as patent and gross as to amount to an evasion of a positive duty or a virtual refusal to perform a duty enjoined by law, as where the power is exercised in an arbitrary and despotic manner because of passion or hostility.[14]

x x x."

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