International
International
International
Ref/Date/Pn
Subj/Law
Case Aid
Facts:
petitioner International Express Travel and Tour Services, Inc., through its managing director, wrote a
letter to the Philippine Football Federation (Federation), through its president private respondent Henri
Kahn, wherein the former offered its services as a travel agency to the latter.[1] The offer was accepted.
Petitioner secured the airline tickets for the trips of the athletes and officials of the Federation to the
South East Asian Games in Kuala Lumpur as well as various other trips to the People's Republic of
China and Brisbane. The total cost of the tickets amounted to P449,654.83
2 installments of payment
Henri Kahn issued a personal check in the amount of P50,000 as partial payment for the outstanding
balance of the Federation.[5] Thereafter, no further payments were made despite repeated demands.
Petitioner sued Henri Kahn in his personal capacity and as President of the Federation and impleaded
the Federation as an alternative defendant. Petitioner sought to hold Henri Kahn liable for the unpaid
balance for the tickets purchased by the Federation on the ground that Henri Kahn allegedly
guaranteed the said obligation
On the other hand, the Federation failed to file its answer, hence, was declared in default by the trial
court.[8]
In due course, the trial court rendered judgment and ruled in favor of the petitioner and declared Henri
Kahn personally liable for the unpaid obligation of the Federation. In arriving at the said ruling, the trial
court rationalized
Issue:
Held:
As correctly observed by the appellate court, both R.A. 3135 and P.D. No. 604 recognized the juridical
existence of national sports associations. This may be gleaned from the powers and functions granted to these
associations. Section 14 of R.A. 3135 provides:
SEC. 14. Functions, powers and duties of Associations. - The National Sports' Association shall have the following
functions, powers and duties:
1. To adopt a constitution and by-laws for their internal organization and government;
2. To raise funds by donations, benefits, and other means for their purposes.
3. To purchase, sell, lease or otherwise encumber property both real and personal, for the accomplishment of their
purpose;
4. To affiliate with international or regional sports' Associations after due consultation with the executive
committee;
A voluntary unincorporated association, like defendant Federation has no power to enter into, or to ratify, a
contract. The contract entered into by its officers or agents on behalf of such association is not binding on, or
enforceable against it. The officers or agents are themselves personally liable.
The above powers and functions granted to national sports associations clearly indicate that these entities
may acquire a juridical personality. The power to purchase, sell, lease and encumber property are acts which
may only be done by persons, whether natural or artificial, with juridical capacity. However, while we agree with
the appellate court that national sports associations may be accorded corporate status, such does not
automatically take place by the mere passage of these laws.
It is a basic postulate that before a corporation may acquire juridical personality, the State must give its
consent either in the form of a special law or a general enabling act. We cannot agree with the view of the
appellate court and the private respondent that the Philippine Football Federation came into existence upon
the passage of these laws. Nowhere can it be found in R.A. 3135 or P.D. 604 any provision creating the
Philippine Football Federation. These laws merely recognized the existence of national sports associations
and provided the manner by which these entities may acquire juridical personality. Section 11 of R.A. 3135
provides:
SEC. 11. National Sports' Association; organization and recognition. - A National Association shall be organized for each
individual sports in the Philippines in the manner hereinafter provided to constitute the Philippine Amateur Athletic
Federation. Applications for recognition as a National Sports' Association shall be filed with the executive committee
together with, among others, a copy of the constitution and by-laws and a list of the members of the proposed association,
and a filing fee of ten pesos
Clearly the above cited provisions require that before an entity may be considered as a national sports
association, such entity must be recognized by the accrediting organization, the Philippine Amateur Athletic
Federation under R.A. 3135, and the Department of Youth and Sports Development under P.D. 604. This fact
of recognition, however, Henri Kahn failed to substantiate. In attempting to prove the juridical existence of the
Federation, Henri Kahn attached to his motion for reconsideration before the trial court a copy of the
constitution and by-laws of the Philippine Football Federation. Unfortunately, the same does not prove that said
Federation has indeed been recognized and accredited by either the Philippine Amateur Athletic Federation or
the Department of Youth and Sports Development. Accordingly, we rule that the Philippine Football Federation
is not a national sports association within the purview of the aforementioned laws and does not have corporate
existence of its own.
RTC: Defendant