h. Corporate Powers

Corporate Powers

• Have continuous succession in its corporate name
• Sue and be sued
• Have and use a corporate seal
• Acquire and convey real or personal property
• Enter into contracts

To Enter Into Contracts

Unless otherwise provided in the LGC, no contract may be entered into by the local chief executive on behalf of the LGU without prior authorization by the Sanggunian concerned. A legible copy of such contract shall be posted at a conspicuous place in the provincial capitol or the city, municipal or barangay hall. Without the council authorization / ratification, the contract is unenforceable.

The prior authorization may be in the form of an appropriation ordinance passed for the year which specifically covers the project, cost or contract to be entered into by the LGU. (Quisumbing v. Garcia,· G.R. 175527, 2008).

A contract beyond the powers of the LGU is ultra vires; the veto and sanggunian-review mechanisms do not make it valid. Separately, the local chief executive may veto ordinances under Section 55 of the LGC and may exercise the item-veto power over the measures specified there, including an ordinance or resolution adopting a local development plan and public investment program, while the appropriate sanggunian reviews ordinances and certain resolutions of component LGUs under Sections 56–57.