KABISIG REAL WEALTH DEV., INC v.

YOUNG BUILDERS CORPORATION

G.R. No. 212375. January 25, 2017

Syllabi

Nothing was mentioned regarding Agency. However, the foregoing are the pertinent Articles
that are tackled regarding the Nature, Form and Kinds of Agency in the case.

Art. 1868. 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.

Art. 1869. Agency may be express, or implied from the acts of the principal, from his silence or
lack of action, or his failure to repudiate the agency, knowing that another person is acting on his behalf
without authority.

Agency may be oral, unless the law requires a specific form.

FACTS:

Sometime in April 2001, Kabisig Real Wealth Dev., Inc. (Kabisig), through Ferdinand Tio (Tio),
contracted the services of Young Builders Corporation (Young Builders) to supply labor, tools,
equipment, and materials for the renovation of its building in Cebu City. Young Builders then finished
the work in September 2001 and billed Kabisig for P4,123,320.95. However, despite numerous demands,
Kabisig failed to pay. It contended that no written contract was ever entered into between the parties
and it was never informed of the estimated cost of the renovation. Thus, Young Builders filed an action
for Collection of Sum of Money against Kabisig.

RTC of Cebu City rendered a Decision for the respondent Young Builders. Kabisig elevated the
case to the CA. On June 28, 2013, the appellate court affirmed the RTC Decision, with modification.
Subsequently, Young Builders and Kabisig moved for reconsideration, but both were denied by the CA.

Hence, Kabisig filed the instant petition.

ISSUE:

Whether or not an agency relationship existed between Kabisig and Tio.

HELD:

Yes. Under Article 1868, “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.”Through the testimonies of both Young Builders' and Kabisig's witnesses, Tio commissioned
the company (Young Builders) of his friend, Nelson Yu, to supply labor, tools, equipment, and materials
for the renovation of Kabisig's building into a restaurant. In such instance Tio bound himself to do
something in representation or on behalf of another (Kabisig) when it entered a contract with Young
Builders to supply labor, tools, equipment, and materials for the renovation of its building.

Article 1869 so provides that an “agency may be express, or implied from the acts of the
principal, from his silence or lack of action, or his failure to repudiate the agency, knowing that another
person is acting on his behalf without authority. As shown by the facts Kabisig never repudiated the said
agency and let Tio to commence with the agency and push through with the contract.