Question
JYP Corp. entered into a contract with MSDC whereby the former agreed to construct the research and laboratory facilities of the latter. Under the terms
JYP Corp. entered into a contract with MSDC whereby the former agreed to construct the research and laboratory facilities of the latter. Under the terms of the contract, JYP Corp. agreed to complete the facility in 18 months, at the total contract price of P10 million. MSDC paid 50% of the total contract price, the balance to be paid upon completion of the work. The work stated immediately, but JYP Corp. later experienced work slippage because of labor unrest in his company. JYP Corp.'s employees claimed that they are not being paid on time; hence, the work slowdown. As of the 17th month, work was only 45% completed. JYP Corp. asked for extension of time, claiming that its labor problems is a case of fortuitous event, but this was denied by MSDC. When it became certain that the construction could not be finished on time, MSDC sent written notice cancelling the contract, and requiring JYP Corp. to immediately vacate the premises. Can the labor unrest be considered a fortuitous event?
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