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TECSON

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TOPIC: Contract of adhesion

PILIPINO TELEPHONE CORPORATION, petitioner, vs. DELFINO TECSON, respondent.


G. R. No. 156966, THIRD DIVISION, May 7, 2004, Vitug, J.
FACTS:
Delfino C. Tecson applied for six (6) cellular phone subscriptions with petitioner Pilipino
Telephone Corporation (PILTEL), a company engaged in the telecommunications business.
Respondent filed with the Regional Trial Court of Iligan City, Lanao Del Norte, a complaint
against petitioner for a "Sum of Money and Damages." Petitioner moved for the dismissal of the
complaint on the ground of improper venue, citing a common provision in the mobiline service
agreements to the effect that –
"Venue of all suits arising from this Agreement or any other suit directly or indirectly arising from
the relationship between PILTEL and subscriber shall be in the proper courts of Makati, Metro
Manila. Subscriber hereby expressly waives any other venues."
Both the RTC and CA denied the MTD.
ISSUE:
Whether or not the stipulation in venue in the mobiline service agreement is null and void on the
ground that it is a mere contract of adhesion. (NO)
RULING:
The contract herein involved is a contract of adhesion. But such an agreement is not per se
inefficacious. The rule instead is that, should there be ambiguities in a contract of adhesion, such
ambiguities are to be construed against the party that prepared it. If, however, the stipulations are
not obscure, but are clear and leave no doubt on the intention of the parties, the literal meaning
of its stipulations must be held controlling.
A contract of adhesion is just as binding as ordinary contracts. It is true that this Court has,
on occasion, struck down such contracts as being assailable when the weaker party is left with
no choice by the dominant bargaining party and is thus completely deprived of an opportunity to
bargain effectively. Nevertheless, contracts of adhesion are not prohibited even as the courts
remain careful in scrutinizing the factual circumstances underlying each case to determine the
respective claims of contending parties on their efficacy.
In the case at bar, respondent secured six (6) subscription contracts for cellular phones
on various dates. It would be difficult to assume that, during each of those times,
respondent had no sufficient opportunity to read and go over the terms and conditions
embodied in the agreements.
A contract duly executed is the law between the parties, and they are obliged to comply
fully and not selectively with its terms. A contract of adhesion is no exception.

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