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    Republic Vs Acoje Mining

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    Jay
    The Republic sued Acoje Mining Co. for losses incurred when the postmaster assigned to the mining company's camp disappeared with missing funds. While corporations normally can only perform acts within the scope of their express powers, establishing a post office was necessary to serve the company's remote employees and not ultra vires. An ultra vires act is voidable, not void, and can be enforced or validated based on equitable grounds. The court found Acoje Mining was liable for losses from the post office given the responsibilities it had assumed in establishing the branch location.

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    Republic Vs Acoje Mining

    Uploaded by

    Jay
    76 views1 page
    The Republic sued Acoje Mining Co. for losses incurred when the postmaster assigned to the mining company's camp disappeared with missing funds. While corporations normally can only perform acts within the scope of their express powers, establishing a post office was necessary to serve the company's remote employees and not ultra vires. An ultra vires act is voidable, not void, and can be enforced or validated based on equitable grounds. The court found Acoje Mining was liable for losses from the post office given the responsibilities it had assumed in establishing the branch location.

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    Republic vs Acoje Mining

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    The Republic sued Acoje Mining Co. for losses incurred when the postmaster assigned to the mining company's camp disappeared with missing funds. While corporations normally can only perform acts within the scope of their express powers, establishing a post office was necessary to serve the company's remote employees and not ultra vires. An ultra vires act is voidable, not void, and can be enforced or validated based on equitable grounds. The court found Acoje Mining was liable for losses from the post office given the responsibilities it had assumed in establishing the branch location.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    76 views1 page

    Republic Vs Acoje Mining

    Uploaded by

    Jay
    The Republic sued Acoje Mining Co. for losses incurred when the postmaster assigned to the mining company's camp disappeared with missing funds. While corporations normally can only perform acts within the scope of their express powers, establishing a post office was necessary to serve the company's remote employees and not ultra vires. An ultra vires act is voidable, not void, and can be enforced or validated based on equitable grounds. The court found Acoje Mining was liable for losses from the post office given the responsibilities it had assumed in establishing the branch location.

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    © All Rights Reserved
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    Republic vs. Acoje Mining Co., Inc. (G.R. No.

    L-18062) February 28, 1963

    FACTS:

    Acoje Mining wrote the Director of Posts requesting the opening of a post, telegraph and money
    order offices and its mining camp at Sta. Cruz, Zambales to serve its employees and their families
    that were said living in the camp. Acting on the request, Director of Posts replied that if aside from free
    quarters, the company would provide for all the essential equipment and assign responsible employee to
    perform a postmasters duties. It is also indicated that the company shall assure direct responsibility
    for whatever pecuniary loss the Bureau of Post may suffer. The post office branch was opened at the
    camp with one Hilario Sandrez as postmaster. The postmasters went on a 3 day leave but never
    returned. The company immediately informed the Manila Post Office of Sanchez's disappearance when
    the accounts were checked a shortage was found. Several demands made upon the company for the
    payment of shortage in line with the liability it has assumed having failed, the government brought the
    present action.

    ISSUE: WON an act outside the scope of powers expressly conferred may be performed.

    HELD:

    Yes.

    While as a rule an ultra vires act is one committed outside the object for which a corporation is
    created as defined by the law of its organization and therefore beyond the powers conferred upon
    it by law, there are however certain corporate acts that may be performed outside the scope of the
    powers expressly conferred if they are necessary to promote the interest and welfare of the
    corporation, such as the establishment, in the case at bar, of a local post office in a mining camp
    which is far removed from the postal facilities or means of communication accorded to people
    living in a city or municipality.

    The term ultra vires should be distinguished from an illegal act for the former is merely voidable which
    may be enforced by performance, ratification, or estoppel, while the latter is void and cannot be
    validated. It being merely voidable, an ultra vires act can be enforced or validated if there are equitable
    grounds for taking such action.

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