34 Phil. 697. August 10, 1916
MAIN TOPIC – Contracts – Freedom to Contract
Gsell, owner of industrial enterprises in the city of Manila employed Ferrazzini for his skilled service. They entered into a contract wherein as part of their duties and obligations; the master, shall furnish safe place to work, pay his services and not to discharge him until the expiration of six months after notice. On the part of the servant shall observe loyalty, faithfulness, and obedience to all reasonable orders. It further stipulates that for the period of 5 years after the termination of the employment, the plaintiff shall not enter into the employ of any enterprises in the Philippine Islands, except after obtaining special written permission. It further stipulated that the defendant shall pay P10,000 as liquidated damages for each and every breach.