- Petitioner
- The Municipality of Lemery
- Respondent
- Andres Mendoza
- Citation
- G.R. No. 23871
- Court
- Supreme Court En Banc
- Division
- En Banc
- Ponente
- Street, J.
- Decided
- December 7, 1926
Summary
The Municipality of Lemery sued Andres Mendoza and his sureties for breach of a two-year fishery lease contract when Mendoza abandoned the lease in the second year. The Supreme Court En Banc affirmed liability against the principal debtor but absolved the surety. Key legal issues included the validity of the municipal lease despite a clerical error in the provincial board's approval resolution, the scope of municipal authority to lease fishery privileges, and the extent of surety liability. The Court held that while the lease was valid for two years and Mendoza remained liable for the unpaid rental, the sureties were discharged because their bond specified a total liability of P23,000, which had already been satisfied by Mendoza's payment for the first year. This case establishes important precedents on municipal contracting authority, the effect of clerical errors in administrative approvals, and the strict construction of surety obligations under Civil Code principles.