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Kilosbayan Inc. vs. Guingona

Kilosbayan Inc. sued Guingona over an agreement between the Philippine Charity Sweepstakes Office (PCSO) and PGMC, a company established by Berjaya Group Berhad and Filipino investors, to provide technical and management services for PCSO's online lottery. The court ruled the contract invalid because PCSO only had a franchise to operate the lottery itself. Additionally, some terms of the contract between PCSO and PGMC, such as reimbursing all of PGMC's investments if terminated early, were contrary to PCSO's franchise and made the contract inimical.

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0% found this document useful (0 votes)
76 views

Kilosbayan Inc. vs. Guingona

Kilosbayan Inc. sued Guingona over an agreement between the Philippine Charity Sweepstakes Office (PCSO) and PGMC, a company established by Berjaya Group Berhad and Filipino investors, to provide technical and management services for PCSO's online lottery. The court ruled the contract invalid because PCSO only had a franchise to operate the lottery itself. Additionally, some terms of the contract between PCSO and PGMC, such as reimbursing all of PGMC's investments if terminated early, were contrary to PCSO's franchise and made the contract inimical.

Uploaded by

Jo Lumbres
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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KILOSBAYAN INC. VS.

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.

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