First Philippine International Bank v. Court of Appeals

Summary

This case involves a contract dispute over 101 hectares of land in Sta. Rosa, Laguna between Producers Bank and prospective buyers. Through correspondence and meetings in 1987, bank manager Rivera negotiated sale at P5.5 million, which buyers accepted. Bank later repudiated contract through conservator claiming Rivera lacked authority. Supreme Court affirmed lower courts' finding of perfected contract based on apparent authority doctrine - bank held Rivera out as authorized to negotiate asset sales. Court ruled conservator cannot unilaterally revoke validly perfected contracts, only defective ones. Bank was found guilty of forum shopping through stockholders' derivative suit seeking same relief. Decision enforces binding contractual obligations against attempts to escape due to changed circumstances, emphasizing respect for perfected contracts and sanctions against procedural violations.