Lapu-Lapu Foundation V CA
Lapu-Lapu Foundation V CA
Lapu-Lapu Foundation V CA
WON the Foundation gave Tan an apparent authority to deal with the Bank.
— YES
● Per its Secretary’s Certificate, the Foundation had given its President,
Tan, ostensible and apparent authority to inter alia deal with the Bank.
Accordingly, the Foundation is estopped from questioning Tan’s
authority to obtain the subject loans from the respondent Bank.
● It is a familiar doctrine that if a corporation knowingly permits one of
its officers, or any other agent, to act within the scope of an apparent
authority, it holds him out to the public as possessing the power to do
those acts; and thus, the corporation will, as against anyone who has in
good faith dealt with it through such agent, be estopped from denying
the agent’s authority.
SO ORDERED.