Title International Express Travel & Tour DOCTRINE:

Services Inc., vs CA, Henri Khan and Phil Before a corporation may acquire juridical
Football Federation personality, State must give its consent either in
GR 119002 form of special law or general enabling act and
Date Oct 19, 2000 not just by mere passage of laws.

KEYWORDS
Airline Tickets – Travel Agency, PFF is not Corp
Entity, State – Consent not just mere passage of
laws,
CASE:
IETTS through its managing director wrote a letter
to Kahn (President of Phil Football Federation –
PFF) offering his services as a travel agency. Kahn
was able to secure airline tickets for the trips of the
athletes and the officials of the Federation in Kuala
Lumpur, Brisbane and China valued at P449,654.83.
The Federation was able to pay P31,603.00 plus
Kahn also issued a personal check worth P50,000.
Thereafter, no partial payments were made.
Hence, this prompted petitioner to file a civil case
before the RTC. IETTS sued Kahn in his personal
capacity and as a President of PFF and also
impleaded the Federation. IETTS wanted to hold
Kahn liable for the unpaid balance because he was
the one who guaranteed said obligation.
court´s decision hence he should not be a party in
this case.
SC: Trial court decision affirmed. PFF did not exist
as a corporate entity under the law. The laws
concerning national sports associations (Sec 14 RA
3135 and Sec 8 PD 609) only recognize that PFF,
may be accorded a corporate status but it does not
automatically take place by mere passage of law.
Kahn´s showing of the constitution and by-laws of
the PFF does not prove that such Federation has
been accredited by the Dept of Youth and Sports
Devt.
Any person acting on behalf of a corporation which
has no valid existence assumes such privileges and
liable for contracts entered into. Therefore, Kahn in
his personal capacity and President of PFF is liable
for the unpaid obligation.

Kahn denied the allegation and that IETTS

has no cause of action against him because he did
not guarantee payment but merely acted as an
agent of the PFF which has a separate and distinct
juridical personality.

Trial Court: judgment in favor of IETTS and declared

Kahn personally liable for the unpaid obligation.
That he failed to show that PFF was a corporation –
he said it was a sport association.

CA: reversed the trial court decision hence,

recognized the corporate existence of PFF hence
Kahn should not be held liable for the unpaid
balance. MR denied. Note that PFF did not appeal