Ruperto Pureza v. The Honorable Court of Appeals

Summary

This case involves a construction dispute where petitioner Pureza contracted with spouses Alejandro to build a house using proceeds from a housing loan with Asia Trust Development Bank. Despite construction being only 70% complete, the bank released 90% of loan proceeds based on petitioner's signed Order of Payment and Certificate of House Completion/Acceptance. When petitioner sued for specific performance and damages, claiming negligent release of funds, the Supreme Court applied the principle of estoppel, ruling that he cannot repudiate documents he voluntarily executed. The Court emphasized that parties cannot escape contractual obligations by subsequently denying their previous acts, especially when other parties relied on those acts in good faith. The decision reinforces the binding nature of written agreements and certificates in construction contracts and protects parties who act in reliance on executed documents.