Flashcards Studio

An acting municipal mayor signs a lease agreement with UrbanLease, Inc. to lease a city-owned market complex for 5 years, with a total value of 6,000,000 pesos, on behalf of the City. The mayor claims authority from a city council resolution authorizing leases up to 7,000,000 pesos without a separate appropriation. The resolution was enacted and published, and the City has no budget appropriation specifically for the lease. UrbanLease, acting in good faith on the mayor’s authority, proceeds with due diligence and preparations toward implementation. The Sanggunian later refuses to ratify the lease or to provide funds. Is the City bound by the lease? (a) Identify the controlling doctrine on when a public officer's acts bind the government. (b) Apply the doctrine to these facts and determine whether the City is bound, considering actual, implied, apparent authority, and ratification. (c) If not bound, what remedies or recourse does UrbanLease have and against whom?