Leveriza vs.

IAC, 157 SCRA 282 (1988)

FACTS:

This case involves three contracts of lease:

1) Contract A: executed between Civil Aeronautics Administration (lessor) and Rosario Leveriza (lessee)
2) Contract B: executed between Leveriza (lessor) and Mobil Oil (lessee)
3) Contract C: executed between CAA (lessor) and Mobil Oil (lessee)

When Leveriza subleased the property to Mobil Oil (Contract B) without permission from the lessor, CAA
cancelled Contract A and executed Contract C with Mobil Oil. Leveriza contended that Contract C was
invalid not only because it was entered into by CAA without approval by the Department Secretary but
also because it was not executed by the President of the Philippines or officer duly designated. According
to Leveriza, the officer duly designated to cancel the contract is not the Airport General Manager but the
Secretary of Public Works and Communication or the Director of the CAA.

ISSUE:

W/N Contract C was validly entered into