Government Service Insurance System (Gsis) v. The Province of Tarlac

Summary

The Supreme Court resolved a dispute over the validity of a land donation from Province of Tarlac to GSIS for construction of a government office. The Court of Appeals had declared the donation void for failure to obtain required appraised valuation under Section 381 of the Local Government Code. However, the Supreme Court reversed this decision, holding that the absence of such valuation does not automatically void the donation since neither the Civil Code nor Local Government Code expressly declares such transfers void. The Court emphasized the presumption of validity of duly executed contracts and the principle that perfected contracts cannot be unilaterally revoked. This case establishes important precedent regarding local government property transfers and the interplay between administrative requirements and contract validity principles.