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FACTS:
1. Respondent Globe is provider of
communications facilities for US bases in Clark
and Subic for the US Defense Communication
Agency.
2. Respondent Globe then contracted with local
service provider Philippine Communications
Satellite Corporation (Philcomsat) for the
provision of communication facilities.
3. On May 7, 1991, Petitioner Philcomsat and
Respondent Globe entered into AGREEMENT
to provide earth station for 5 years. They knew
then that the Military Base Agreement was to
expire in 1991.
4. In September 1991, Senate did not renew the
Military Base Agreement.
5. In August 1992, Globe notified Philcomsat of
its intention to discontinue Agreement citing
force majeur. This is provided for in Sec. 8
[Default] of the said Agreement.
6. US was set to leave by December, 1992.
7. After the US left, Philcomsa demanded out
from Globe the standing obligation of $5M
from the Agreement. Philcomsat filed suit.in
RTC.
8. RTC ordered Globe to pay Philcomsat $92
(rentals for the month of Dec. 1992).
9. CA ruled that the occurrence of Senats nonratification was indeed force majeur. But CA
still held Globe liable to US rent of $92K for
the month of December, 1992.
10. They raised to Court via Petition for
Review.
ISSUE: