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herself as an agent of Defendant Tourist World Services, Inc. (TWSI). The ticket is for the destination in HK, Tokyo & San
Francisco USA. The purpose of the trip is to go to New Jersey in order to bur 2 equipments for his business.
On the supposed date of the flight, only the trip to Manila to HK and to Tokyo were confirmed. The trip to USA was on
RQ Status (On Request). After a few days, when Canilao of TWSI told Tagunicar that the flight was confirmed, the
latter told the same to the petitioner. Prior to the date of confirmed flight, the son of petitioner called up Defendant
Pan-American for further confirmation, which told him that the bookings are confirmed.
Petitioner flew from HK to Tokyo. While in Tokyo, they called again the Pan-American for reconfirmation of flight going
to USA. Unfortunately, it informed them that their names are not in the manifest. Due to such scenario, the petitioner
incurred expenses involving plane tickets from Tokyo to Taipei, hotel accommodations and worse, the Radiant Heat
Enterprises cancelled Petitioners option to buy the supposed equipments. A complaint for damages was filed by
petitioners against private respondents Pan American World Airways, Inc. (Pan Am), Tourist World Services, Inc. (TWSI),
Julieta Canilao (Canilao), and Claudia Tagunicar (Tagunicar) for expenses allegedly incurred. The petitioners contention
is that the Defendant PanAm is the principal, the TWSI as an agent and Taginucar as its agent. Thus, they shall all be
held liable.
Issue: WON an Agency Relationship exists in this case. NONE.
Held: The Court held that there was no Agency Relationship existing between the defendants and that the transaction
is simply a Contract of Sale wherein Tagunicar buys airline tickets from TWSI. In support to this, Tagunicar categorically
denied in open court that she is a duly authorized agent of TWSI, and declared that she is an independent travel agent.
Petitioners included respondent Pan Am in the complainant on the supposition that since TWSI is its duly authorized
agent, and respondent Tagunicar is an agent of TWSI, then Pan Am should also be held responsible for the acts of
respondent Tagunicar. Our disquisitions above show that this contention lacks factual and legal bases. Indeed, there is
nothing in the records to show that respondent Tagunicar has been employed by Pan Am as its agent, except the bare
allegation of petitioners. In the case at bar, petitioners' ticket were on "RQ" status. They were not confirmed
passengers and their names were not listed in the passenger manifest. In other words, this is not a case where Pan Am
bound itself to transport petitioners and thereafter reneged on its obligation. Hence, respondent airline cannot be held
liable for damages.
Undoubtedly, respondent Tagunicar should be liable for having acted in bad faith in misrepresenting to petitioners that
their tickets have been confirmed. Her culpability, however, was properly mitigated. Petitioner Yu Eng Cho testified
that he repeatedly tried to follow up on the confirmation of their tickets with Pan Am because he doubted the
confirmation made by respondent Tagunicar.
MANILA MEMORIAL PARK INC. V. LINSANGAN
Facts: Florencia Baluyot is authorized by the Manila Memorial ParkInc. (MMPI) to sell burial lots to those interested in
purchasing. Herein respondent Atty. Linsangan was approached by Florenciawith an offer to sell to the former a lot that
she alleges to have already been previously sold but the owner thereof has cancelled and thus, Atty. Linsangan shall
only continue the payment thereof amounting to P95,000, Atty. Linsangan agreed and payed an initial P35, 000.
Thereafter, Florencia advised Atty. Linsangan that there were changes in the contract and that she needed him to sign
a new contract stipulating the total price of P132, 000 but Florencia assured Atty. Linsangan that he would only pay the
agreed P95, 000. In the new contract, Atty. Linsangan acceded that he has read and understood all the stipulations
therein. The payment was made in installments for two years which Atty. Linsangan completed, however, after two
years, Florencia informed Linsangan that their contract was cancelled and offered a different lot, Atty. Linsangan
refused the offer and filed a suit for breach of contract against MMPI and Florencia. MMPI avers that Florencia acted
beyond the scope of her authority as MMPIs agent since the latter did not allow her to renegotiate existing contracts
but only to sell new contracts. Atty. Linsangan on the other hand argues that MMPI should be liable for the acts of its
agents.
Issue: Whether or not MMPI is liable for the acts of Florencia NO.
Held: The Court found that indeed, Florencia is a duly authorized agent of MMPi to solicit and remit offers to purchase,
however it is clear that Florencia acted outside the scope of her authority when it contracted another contract by
herself without the knowledge of the MMPI.
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Atty. Linsangan failed to ascertain the authority given to Florencia especially that their agreement on the second
contract had a different stipulation than what he and Florencia agreed upon. Moreover, Atty. Linsangans signature
over the new contract signifies his agreement thereto and serves as a form of ratification for the acts of Florencia
which were outside the authority given her.On the part of MMPI, they did not ratify Florencias acts nor did they know
of such new contracted agreements or actions, thus, cannot be held liable on the ground of its alleged ratification.
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