OBLIGATIONS AND CONTRACTS SLC-LAW

DIGEST: C & C COMMERCIAL CORPORATION v. MENOR

TOPIC: Advertisers are not duty bound to accept lowest bidders. (Art. 1306)

G.R. No. L-28360 January 27, 1983

PETITIONER: C & C COMMERCIAL CORPORATION
RESPONDENTS: ANTONIO C. MENOR, as Acting General Manager of the National Waterworks and Sewerage
Authority, and MEMBERS OF THE COMMITTEE ON PREQUALIFICATION, NAWASA

FACTS:

Judge Cloribel of the Court of First Instance (CFI) of Manila ordered the National Waterworks and Sewerage Authority
(NAWASA) Acting General Manager Antonio Menor (Menor) and its Committee on Pre-Qualification members to allow
petitioner C&C Commercial Corporation (Corporation) to participate as a qualified bidder in the public bidding for the
supply of asbestos cement pressure pipers to the NAWASA. The Corporation was found the lowest bidder.

Menor required the Corporation to submit their tax clearance certificate pursuant to a Government Order that persons,
natural or artificial, are deemed disqualified to participate in any public bidding when they are involved in any
nonpayment of tax and other government liabilities. The Corporation failed to submit any tax clearance certificate.

The Corporation filed another civil case with same object that it be awarded the contract for it was the lowest bidder.
Judge Cloribel granted the motion again.

ISSUE:

Whether or not the CFI order should be followed.

HELD:

No. The CFI order should not be followed. Judge Cloribel acted without jurisdiction and with grave abuse when he issued
the assailed order that NAWASA officials should award the contract to the Corporation. The order is erroneous and void
for the following reasons:

(1) The said order was an amendment of a judgment that has already been satisfied. The case was closed and
terminated. Judge Cloribel had no right and authority to issue the order again for he lost jurisdiction over the case; and
(2) NAWASA was justified in not awarding the contract to the Corporation because it had no tax clearance
certificate. It had a pending tax case in the Bureau of Internal Revenue. The award to the Corporation would be in gross
contravention of Government Order; and
(3) It was not the ministerial duty of the NAWASA officials to award the contract to C & C Commercial
Corporation even if it was the lowest bidder.

It should be noted that "advertisements for bidders are simply invitations to make proposals, and the advertiser is not
bound to accept the highest or lowest bidder, unless the contrary appears" (Art. 1326, Civil Code). No such contrary
intention appears in this case.

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