Kilosbayan Inc. vs. Guingona
Kilosbayan Inc. vs. Guingona
GUINGONA Berjaya Group Berhad of Malaysia established PGMC, together with some Filipino investors to offer technical and management services to PCSO for on line lottery. The agreement was documented as Contract of Lease. Court ruled that such was contrary to law, and hence invalid. PCSO only has its franchise to offer while PGMC represents and warrants to all managerial and technical expertise to promptly and effectively carry out the terms of the contract which are inimical such as a. rent not a fixed amount b. PCSO to reimburse total investment of PGMC in case of pre-termination or suspension, etc. Joint venture is defined as an association of persons or companies jointly undertaking some commercial enterprise; generally all contribute assets and share risks. It requires a community of interest in the performance of the subject matter, a right to direct and govern the policy in connection therewith, and duty, which may be altered by agreement to share both in profit and losses. The act of working together in a joint project.