Practice question
A city has legal capacity to contract for a project. Its chief executive reasons that this abstract corporate capacity permits any officer to sign on any terms without the otherwise applicable approvals. The contract falls under the general authorization rule and no exception applies. Which is best?
- Corporate capacity identifies what the LGU can do, but does not erase required authority and lawful procedure for the officer's act
- Every employee can bind the city without limit
- The contractor can appoint the signatory
- Capacity repeals every statutory condition
- A city seal alone cures all defects
Legal references
- RA 7160 Section 22, Corporate Powers: https://officialgazette.gov.ph/1991/10/10/republic-act-no-7160/
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