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Guardex Enterprises vs. NLRC: Agent Dispute

This document summarizes a court case between Guardex Enterprises and the NLRC regarding a sales commission. Junbee Orbeta was a freelance salesman who contacted Guardex Enterprises about representing them to sell a fire truck to Rubberworld. Guardex agreed to pay Orbeta a commission but later sold the fire truck directly to Rubberworld without Orbeta's involvement. Orbeta filed a complaint claiming he was entitled to the commission. The court ruled that Orbeta was not an agent of Guardex and therefore not entitled to the commission, as Guardex had already made their own offer to Rubberworld prior to Orbeta and negotiated the final sale directly without Orbeta. The court also found that the Labor Ar

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47 views2 pages

Guardex Enterprises vs. NLRC: Agent Dispute

This document summarizes a court case between Guardex Enterprises and the NLRC regarding a sales commission. Junbee Orbeta was a freelance salesman who contacted Guardex Enterprises about representing them to sell a fire truck to Rubberworld. Guardex agreed to pay Orbeta a commission but later sold the fire truck directly to Rubberworld without Orbeta's involvement. Orbeta filed a complaint claiming he was entitled to the commission. The court ruled that Orbeta was not an agent of Guardex and therefore not entitled to the commission, as Guardex had already made their own offer to Rubberworld prior to Orbeta and negotiated the final sale directly without Orbeta. The court also found that the Labor Ar

Uploaded by

Co Tam Beh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

3.

GUARDEX ENTERPRISES V NLRC

FACTS:

Escandor-engaged, under the name and style of Guardex Enterprises in (a) manufacture and sale of
fire-fighting equipment such as fire extinguishers, fire hose cabinets and related products, and (b)
occasionally, the building or fabrication of fire trucks

Junbee Orbeta- a freelance salesman

Orbeta somehow learned that Escandor had offered to fabricate a fire truck for Rubberworld )Phil) inc
thus he wrote Escandor inquiring about the amount of commission for the sale of a fire truck. Escandor
replied saying that it was P15,000 per unit

4 days later, Orbeta offered to look after Escandors pending proposal to sell a fire truck to Rubberworld,
ans asked for P250 as representation expenses to which Escandor agreed and gave him the money

When Escandor didnt get any word from Orbeta after 3 days, she herself inquired in writing from
Rubberworld about her offer of sale of a fire truck. She then sent a revised price quotation some ten days
laeter.

in the meantime, Orbeta sold to other individuals some of Escanodors fire extinguishers, receiving
traveling expenses in connection therewith as well as the corresponding commissions and after that he
then dropped out of sight.

About 7 months afterwards, Escandor herself finally concluded a contract with Rubberworld for the
latters purchase of a fire truck

Orbeta suddenly reappeared an asked for his commission for the sale of the fire truck to Rubberworld to
which Escandor refused, saying that he had had nothing to do with the offer, negotiation and
consummation of the sale

Orbeta then filed a complaint against Escandor with the Ministry of Labor which ruled in his favor. It was
affirmed by the National Labor Relations Commission on appeal taken by Escandor

ISSUE:

W/N Orbeta is an agent of Guardex Enterprises thus entitled to sales commission

RULING: No

The claim that she gave verbal authority to Orbeta to offer to a fire truck to Rubberworld was belied from
the fact that months prior to Orbetas approaching Escandor, the latter already had made a written offer
of a fire truck to Rubberworld. All that she consented to was for Orbeta to follow up that pending offer. It
seems fairly evident that the representation allowance of P250 was meant to cover the expenses for the
follow up offered by Orbeta-an ambiguous fact which does not of itself suggest the creation of an
agency and is not at all inconsistent with the theory of its absence in this case.

Even if Orbeta is considered to have been Escandors agent for the time he was supposed to follow up
the offer to sell, such agency would have been deemed revoked upon the resumption of direct
negotiations between Escandor and Rubberworld, Orbeta having in the meantime abandoned all efforts
(if indeed any were exerted) to secure the deal in Escandors behalf.

No jurisdiction for Labor Arbiter or NLRC in dealing with this case since jurisiction vested in tehm by the
Labor Code extends generally speaking only to cases arising from employer-employee relationship.

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