Pat Final Case Assignment

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12. Manila Memorial Park Cemetery Inc. v.

Linsangan

443 SCRA 377, 2004

FACTS:

ISSUE:

1. Whether there is contract of agency between Baluyot and MMPCI.

2. Whether the acts of Baluyot as an agent beyond the scope of her authority
bind the MMPCI as the principal.

RULING:

1. Yes. There is a Contract of Agency between Baluyot and MMPCI.

By the contract of agency, a person binds himself to render some service or


to do something in representation or on behalf of another, with the consent or
authority of the latter. Thus, the elements of agency are (i) consent, express or
implied, of the parties to establish the relationship; (ii) the object is the execution
of a juridical act in relation to a third person; (iii) the agent acts as a representative
and not for himself; and (iv) the agent acts within the scope of his authority.

In an attempt to prove that Baluyot was not its agent, MMPCI pointed out that
under its Agency Manager Agreement; an agency manager such as Baluyot is
considered an independent contractor and not an agent. However, in the same
contract, Baluyot as agency manager was authorized to solicit and remit to MMPCI
offers to purchase interment spaces belonging to and sold by the
latter. Notwithstanding the claim of MMPCI that Baluyot was an independent
contractor, the fact remains that she was authorized to solicit solely for and in
behalf of MMPCI. As properly found both by the trial court and the Court of Appeals,
Baluyot was an agent of MMPCI, having represented the interest of the latter, and
having been allowed by MMPCI to represent it in her dealings with its
clients/prospective buyers.

Nevertheless, contrary to the findings of the Court of Appeals, MMPCI cannot be


bound by the contract procured by Atty. Linsangan and solicited by Baluyot.
Baluyot was authorized to solicit and remit to MMPCI offers to purchase interment
spaces obtained on forms provided by MMPCI. The terms of the offer to purchase,
therefore, are contained in such forms and, when signed by the buyer and an
authorized officer of MMPCI, becomes binding on both parties.

2. No, the acts of Baluyot as an agent beyond the scope of her authority does
not bind the MMPCI as the principal.

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