Jacques A. Dupasquier vs. Ascendas, G.R. No. 211044, 24 July 2019 (Philippines)

Petitioners and respondents entered into a Memorandum of Understanding (MOU) which would only be effective until two (2) calendar weeks after the signing of a subsequent Memorandum of Agreement (MOA), but no later than 31 March 2017. The MOU stipulated that, save for the confidentiality clause, upon the termination or lapse of the MOU, it would cease to take effect. Both parties failed to execute a MOA, nor did they agree in writing to extend the validity of the MOU. The Supreme Court applied the doctrine of separability and discussed the same, along with the manifest intention of the contracting parties. In this case, since the arbitration clause is not one of the provisions mentioned which would survive the termination or lapse of the MOU, it can be concluded that such clause was intended to be deliberately time-limited. Thus, there is no basis to refer the case to arbitration.