ART.

1159
G.R. No. L-17768

March 31, 1962

NATIONAL MARKETING CORPORATION, petitioner,

vs.
THE HON. BIENVENIDO TAN, Judge of Branch XIII of the court of First Instance of
Manila;
FEDERATION OF UNITED NAMARCO DISTRIBUTORS, INC., JUSTO MANALO, ET AL.,
respondents.
Angel Gamboa for plaintiffs-appellees.
Government Corporate Counsel for defendant-appellant.
Government Corporate Counsel for petitioner.
Angel Gamboa for respondents.
BARRERA, J.:
Facts: On August 8, 1959, the Board of Directors of the FEDERATION of NAMARCO
DISTRIBUTORS requested the President of the Philippines to allow the NAMARCO to purchase
certain commodities, for distribution to the members of the FEDERATION. Upon endorsement by
the President, the NAMARCO authorized the importation. When the President gave NAMARCO
certain cash advances for the cost importation, NAMACO and the Federation executed a contract
whereby the former sold to the latter the goods to be imported. Part of the goods was delivered
to the Federation, but when a new Board took charge of the NAMARCO, the Bard refused further
delivery to outsiders.
Issue: was NAMARCOs action proper?
Held: No, because it had entered into a valid contract with the Federation.