Practice question
A conservator argues that the power to overrule previous management permits repudiation of any valid perfected contract solely because a better bargain is now available. Which is best under First Philippine International Bank?
- Every perfected contract is automatically cancellable
- Conservatorship abolishes contract law
- The statutory restorative powers are not an unlimited license to repudiate valid perfected contracts
- Only the conservator’s preference matters
- The bank’s counterparties lose all legal rights
Legal references
- https://lawphil.net/statutes/repacts/ra1993/ra_7653_1993.html — RA 7653, section 29
- https://lawphil.net/statutes/repacts/ra2019/ra_11211_2019.html — RA 11211, section 13 amending section 30
- https://lawphil.net/judjuris/juri1996/jan1996/gr_115849_1996.html — First Philippine International Bank v. Court of Appeals, G.R. No. 115849, January 24, 1996, main opinion
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