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Siasat vs. Intermediate Appellate Court

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Siasat vs.

Intermediate Appellate Court


GR No. L-67889
October 10, 1985

Facts:
Respondent Teresita Nacianceno succeeded in convincing officials of the then Department of
Education and Culture, to purchase without public bidding, one million pesos worth of national flags for
the use of public schools throughout the country. For her service, she was entitled to a commission of
thirty (30%) percent.
The first delivery of flags was made by United Flag Industry. Thereafter, the respondent’s
authority to represent the United Flag Industry was revoked by Petitioner Siasat. Allegedly, after Siasat
received the payment for the first delivery, he tendered 5% of the amount to respondent, who protested,
insisting on the 30% commission agreed upon. Later, respondent stated that she learned that petitioner
received another payment for the second delivery, which was denied by the latter. Petitioner also claimed
that Respondent had no participation with regard the second delivery and that the contract of agency had
already been revoked.
Respondent then filed a case to recover her commissions. The trial court decided in her favor. On
appeal, the IAC affirmed the decision.

Issue:
WON a contract of agency exists between petitioners and respondent.

Ruling:
Yes. Respondent is indeed their agent.
An agent may be (1) universal: (2) general, or (3) special. A universal; agent is one authorized to
do all acts for his principal which can lawfully be delegated to an agent. So far as such a condition is
possible, such an agent may be said to have universal authority.
A general agent is one authorized to do all acts pertaining to a business of a certain kind or at a
particular place, or all acts pertaining to a business of a particular class or series. He has usually authority
either expressly conferred in general terms or in effect made general by the usages, customs or nature of
the business which he is authorized to transact.
One does not have to undertake a close scrutiny of the document embodying the agreement
between the petitioners and the respondent to deduce that the 'latter was instituted as a general agent.
Indeed, it can easily be seen by the way general words were employed in the agreement that no
restrictions were intended as to the manner the agency was to be carried out or in the place where it was
to be executed. The power granted to the respondent was so broad that it practically covers the
negotiations leading to, and the execution of, a contract of sale of petitioners' merchandise with any entity
or organization.

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