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Is a Stipulation in a Contract of Lease Granting the Lessee

Question 13

Multiple Choice

Is a stipulation in a contract of lease granting the lessee an exclusive right to renew the contract valid?


A) No, because it is violative of the principle of mutuality of contracts.
B) No, because validity or compliance cannot be left to the will of only one of the parties.
C) Yes, it is fundamentally part of the consideration in the contract. (Allied Bank v. CA, January 16, 1998)
D) No, it is contrary to law.

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