Appointed the contract shall forthwith be closed

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Unformatted text preview: y 53 when the contract is sought to be enforced against the principal. Because NAMARCO exceeded his powers by agreeing that non­availability of a streamer is not a justification for non­payment of liquidated damages despite the instructions of ICC, NAMARCO is personally liable. In such instance, he acted in his own name. Cervantes v. CA, 304 SCRA 25 (1999) DORIA DOCTRINE: The acts of an agent beyond the scope of his authority do not bind the principal, unless the latter ratifies the same expressly or impliedly (Article 1898) FACTS: Private respondent, Philippine Air Lines, Inc. (PAL), issued to Nicholas Cervantes (Cervantes), a round trip plane ticket for Manila­Honolulu­Los Angeles­Honolulu­Manila, which ticket expressly provided an expiry of date of one year from issuance. The issuance of the said plane ticket was in compliance with a Compromise Agreement entered into between the contending parties in two previous suits before the RTC in Surigao City. 4 days before the expiry date of the ticket, Cervantes used it. Upon his arrival in Los Angeles on the same day, he immediately booked his LA­Manila return ticket with the PAL office, and it was confirmed for the April 2, 1990 flight. Upon learning that the same PAL plane would make a stop­over in San Francisco, and considering that he would be there on April 2, 1990, Cervantes made arrangements with PAL for him to board the flight in San Francisco instead of boarding in Los Angeles. On April 2, 1990, when the petitioner checked in at the PAL counter in San Francisco, he was not allowed to board. The PAL personnel concerned marked the following notation on his ticket: “TICKET NOT ACCEPTED DUE EXPIRATION OF VALIDITY.” Cervantes filed a Complaint for Damages, for breach of contract of carriage before the RTC of Surigao del Norte in Surigao City. RTC: Complaint was dismissed for lack of merit. CA: Affirmed the decision of the RTC and upheld the dismissal of the case. ISSUE: W/N the act of the PAL agents in confirming subject ticket extended the period of v...
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This document was uploaded on 03/11/2014.

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