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law itself limits the terms that are included in implied renewals. One cannot simply
presume that all conditions in the original contract are also revived; after all, a contract
is based on the meeting of the minds between parties.
In Arevalo Gomez Corporation v. Lao Hian Liong:[61]
Article 1670 applies only where, before the expiration of the lease, no
negotiations are held between the lessor and the lessee resulting in its
renewal. Where no such talks take place and the lessee is not asked to
vacate before the lapse of fifteen days from the end of the lease, the
implication is that the lessor is amenable to its renewal.[62]
The concept of implied renewal is a matter of equity recognized by law. Technically, no
contract between a lessor and a lessee exists from the end date of a lease contract to
its renewal. But if there is no notice to vacate and the lessee remains in possession of
the property leased, it would only be proper that the lessor is still paid for the use and
enjoyment of the property.
Thus, implied renewal does not extend to all stipulations. Without any express contract
renewal, this Court cannot presume that both parties agreed to revive all the terms in
the previous lease contract.
Dizon v. Court of Appeals finds support in Dizon v. Magsaysay,[63] in which this Court
also resolved whether an implied renewal of a lease contract includes a renewal of the
option to purchase. It held:
But whatever doubt there may be on this point is dispelled by paragraph (2)
of the contract of lease, which states that it was renewable for the same
period of two years (upon its expiration on April 1, 1951), "con condiciones
expresas y specificadas que seran convenidas entre las partes." This
stipulation embodied the agreement of the parties with respect to renewal of
the original contract, and while there was nothing in it which was
incompatible with the existence of an implied new lease from month to
month under the conditions laid down in Article 1670 of the Civil Code, such
incompatibility existed with respect to any implied revival of the lessee's
preferential right to purchase, which expired with the termination of the
original contract. On this point the express agreement of the parties should
govern, not the legal provision relied upon by the petitioner.[64]
Since the implied renewal of the Lease Contract did not include the renewal of the right
of first refusal, petitioners have no basis for their claim that the property should have
been offered to them before it was sold to respondent Roselle. The Court of Appeals did
not err in affirming the trial court's ruling that petitioners failed to state their cause of
action.
II
Additionally, petitioners made a claim on respondent Roselle's alleged incapacity[65]
due to her age, as raised for the first time in their Opposition to her Motion to Dismiss.
[66] In their appeal brief, they alleged:
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