Ortigas v FeatiBank; G.R. No. L-24670; 14 Dec 1979; 94 SCRA 533
FACTS: A municipal resolution declared the area along the western part of EDSA a commercial and industrial zone. Such area covers the two parcels of land originally owned by plaintiff-appellant and later acquired by defendant-appellee from third persons. The Transfer Certificates of Title of both parcels of land contained building restrictions that such land be only used for residential purposes. Defendant-appellee commenced the construction of a building to be devoted to banking purposes. ISSUE(S): Whether or not a municipal resolution can nullify contractual obligations. HELD: YES. While non-impairment of contracts is constitutionally guaranteed, the rule is not absolute, since it…