BF Corporation v.

CA, 288 SCRA 267 (1998)

Facts:

Petitioner and respondent Shangri-la Properties entered into an agreement wherein

petitioner will construct the main structure of the EDSA Plaza Project. Petitioner incurred delay in
theconstruction work, which resulted in disagreements between the parties as regards their
respecti!e liabilities under the contract. Petitioner filed with the "#$ of Pasig a complaint for
collection of the balance due under theconstruction agreement. Shangri-la filed a motion to
suspend proceedings alleging that theformal trade contract for the construction of the project pro!
ided for a clause re%uiring prior resort to arbitration before judicial inter!ention could be in!oked in
any dispute arising from thecontract. Petitioner opposed said motion claiming that there was no
formal contract between theparties although they entered into an agreement defining their rights
and obligations inundertaking the project.

ISSUE
whether or not the contract between petitioner and respondent embodies an arbitration
clausein case of disagreement between the parties in the implementation of contractual provisions.

HELD:

Yes. the making of a contract or submission for arbitration described in Sec.2 ( of R.A.
876)*+providing for arbitration of any controversy, shall be deemed a consent of the parties of the
province or city where any of the parties resides, to enforce such contract of submission.#he formal
requirements of an agreement to arbitrate are a) it must be in writing and b.) it must be subscribed
by the parties or their representatives. #here is no denying that the parties entered into a written
contract that was submitted in evidence before the lower court. The court finds that, upon a
scrutiny of the records of this case, these requisites were complied with in the contract in question.
#he Articles of Agreement, which incorporates all the other contracts and agreements between the
parties, was signed by representatives of both parties and duly notarized. #he failure of the private
respondent/s representative to sign the conditions of contract0 would not affect the compliance
with the formal requirements for arbitration agreements.