Issue: Later however, the spouses found out that the train
trip wasn’t really fully booked and so they purchased
Whether or not petitioner was duty bound to pay train tickets and went to their destination by train
commission notwithstanding that authority to sell instead. Then they called up Mager to request for a
has been cancelled. refund for the plane tickets. Mager referred the
couple to Continental Airlines. As the couple were
Ruling: now in the Philippines, they filed their request with
Continental Airline’s office in Ayala. The spouses
Viloria alleged that Mager misled them into believing
A principal may withdraw the authority given to an
that the only way to travel was by plane and so they
agent at will. But respondents agreed to cancel the
were fooled into buying expensive plane tickets.
authority given to them upon assurance by
petitioner that should property be sold to Noche,
Continental Airlines refused to refund the amount of
they would be given commission.
the tickets and so the spouses sued the airline
company. In its defense, Continental Airlines claimed
That petitioner had changed her mind even if that the tickets sold to them by Mager were non-
respondents had found a buyer who was willing to refundable; that, if any, they were not bound by the
close the deal, is a matter that would give rise to a misrepresentations of Mager because there’s no
legal consequence if respondents agree to call off to contract of agency existing between Continental
transaction in deference to the request of the Airlines and Mager.
petitioner. Petitioner took advantage of the services
of respondents, but believing that she could evade The trial court ruled in favor of spouses Viloria but
payment of their commission, she made use of a the Court of Appeals reversed the ruling of the RTC.
ruse by inducing them to sign the deed of
cancellation. This act of subversion cannot be ISSUE: Whether or not a contract of agency exists
sanctioned and cannot serve as basis for petitioner between Continental Airlines and Mager.
to escape payment of the commissions agreed upon.
HELD: Yes. All the elements of agency are present,
to wit: