Mendoza v.

Paule
GR No. 175885 February 13, 2009

Facts:

Engineer Eduardo M. Paule is the proprietor of E.M. Paule Construction and Trading.
Paule executed a SPA authorizing Zenaida Mendoza to participate in the bidding of
National Irrigation Administration project and to represent him in all transactions related
thereto. EMPCT, through Mendoza was awarded projects. Manuel de la Cruz leased
heavy equipments to EMPCT through Mendoza. On April 27, 2000, Paule revoked the
SPA in favor of Mendoza. Cruz filed an action against Mendoza and Cruz.

Issue:

Whether Mendoza is an agent of Paule.

Held:

No. Records show that Paule and Mendoza entered into a partnership in regard to the
NIA project. Paule's contribution is his contractor's license and expertise, while Mendoza
is to secure the funds for labor, materials and services. There is no valid reason for Paule
to revoke Mendoza's SPA. Since Mendoza took care of the funding it is only logical that
the SPA issued were necessary for the performance of her role in the partnership. Paule's
revocation of SPA was done in bad faith. Paule is liable for abandoning the partnership,
leaving Mendoza to fend for her own.