Janet Arlene Motion Grant Lease Action I Contract

X.

Arlene owns a row of apartment houses in Kamuning, Quezon City. She agreed to lease Apartment No. 1 to Janet for a period of 18 months at the rate of P10,000 per month. The lease was not covered by any contract.  Janet promptly gave Arlene two (2) months deposit and 18 checks covering the rental payment for 18 months. This show of good faith prompted Arlene to promise Janet that should Arlene decide to sell the property, she would give Janet the right of first refusal.

X.(l)  Not long after Janet moved in, she received news that her application for a Master of Laws scholarship at King's College in London had been approved. Since her acceptance of the scholarship entailed a transfer of residence, Janet asked Arlene to return the advance rental payments she made. Arlene refused, prompting Janet to file an action to recover the payments. Arlene filed a motion to dismiss, claiming that the lease on which the action is based, is unenforceable.

If you were the judge, would you grant Arlene's motion? (1%)

(A)  Yes, I will grant the motion because the lease contract between Arlene and Janet was not in writing, hence, Janet may not enforce any right arising from the same contract.

(B)  No, I will not grant the motion because to allow Arlene to retain the advance payments would amount to unjust enrichment.

(C)  Yes, I will grant the motion because the action for recovery is premature; Janet should first secure a judicial rescission of the contract of lease.

(D)  No. I will not grant the motion because the cause of action does not seek to enforce any right under the contract of lease.

SUGGESTED ANSWER:

(D)

Janet is not asking for the continued use of the leased premises.  Moreover, the contract is outside the ambit of the Statute of Frauds as the same has already been partially performed.