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action effectual, and would yield the greatest reciprocity of interests. Indeed, the SC agree with SBC that PISAs
interpretation of the clause would lead to an effective waiver of SBCs right of action, because to await the judicial
determination of the LIC suit may lead to the prescription of SBCs right of action against PISA.
Article 1373 of the Civil Code states that, if some stipulations of any contract should admit of several meanings,
it shall be understood as bearing that import which is most adequate to render it effectual. Also, Article 1374
states that the various stipulations of a contract shall be interpreted together, attributing to the doubtful ones
that sense which may result from all of them taken jointly. Lastly, Article 1378 of the Civil Code states that
when it is impossible to settle doubts by the rules established in the preceding articles, and the doubts refer to
incidental circumstances of an onerous contract, the doubt shall be settled in favor of the greatest reciprocity of
interests.
The SC hold that SBCs suit against PISA was not premature, and the dismissal of the action as against PISA was
improper.