FACTS:

Penas leased the disputed property in favor of Calaycay. An extrajudicial settlement was executed by the heirs of Penas after his death. As time went on, the lease continued with increased rentals. On a relevant date, a letter was sent to Calaycay from petitioner Penas, relaying the intent to terminate the lease contract and the offer of drafting a new lease contract with a higher rental fee. Calaycay failed to abide with the demands. He continued though to occupy the premises and deposited rentals to the bank in trust of petitioner Penas. Another letter was sent but to no avail. This prompted the petitioner to file an action for unlawful detainer. The complaint was dismissed in the lower court.

HELD:

A complaint for unlawful detainer can be filed should it be counted from the last demand letter to vacate, the reason being that the lessor has the right to waive his right of action based on previous demands and let the lessee remain meanwhile in the premises.