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Answers to Phil Bar Exams 1987-2006 Political Law

Answers to Phil Bar Exams 1987-2006 Political Law

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Published by: Hanna Mapandi on Mar 14, 2010
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No. 11 - The Philippine Commodities Office
(PCO), a government agency, wishes to
establish a direct computer and fax linkup with
trading centers in the United States. The
advanced technology of a private company,
Philippine Pacific Telecommunications, is
necessary for that purpose but negotiations
between the parties have failed. The Republic,
in behalf of the PCO, files suit to compel the
telecommunications company to execute a
contract with PCO for PCO's access and use of
the company's facilities.

Decide. If the case will not prosper, what
alternative will you propose to the Republic?


The action will not prosper. As held in Republic
of the Philippines vs. Philippine Long Distance
Telephone Company, 26 SCRA 620, parties
cannot be compelled to enter into a contract.
However, since under Section 18, Article XII of
the Constitution, the State may expropriate
public utilities, the Republic of the Philippines
may compel the Philippine Pacific
Telecommunications to allow access to its
facilities. If the Republic of the Philippines can
take title to the facilities of Philippine Pacific
Telecommunications by its power of
expropriation, there is no reason why it cannot
use such power to impose only a burden upon
Philippine Pacific Telecommunication without
loss of title.

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