Flashcards Studio

An acting municipal mayor signs a 2-year lease of a city-owned market complex to a private operator for a total value of 12,000,000 pesos, acting on behalf of the City. The mayor asserts authority from a city council resolution authorizing leases up to 15,000,000 pesos without a separate appropriation. The resolution was never enacted or published, and the City has no budget appropriation for the project. The private operator, acting in good faith on the mayor’s authority, begins occupancy and improvements. The Sangguniang Panlungsod 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 the private operator have and against whom?