Professional Documents
Culture Documents
*
G.R. No. 76931. May 29, 1991.
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* SECOND DIVISION.
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PADILLA, J.:
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WITNESSETH
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4. Remittances
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5. Commissions
(i) For transportation solely between points within the United States and
between such points and Canada: 7% or such
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10. Default
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13. Termination
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7 Rollo, p. 162.
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5. Commissions
a) xxx xxx
b) Overriding Commission
In addition to the above commission, American will
pay Orient Air Services an overriding commission
of 3% of the tariff fees and charges for all sales of
transportation over Americans services by Orient
Air Services or its subagents. (italics supplied)
Since Orient Air was allowed to carry only the ticket stocks
of American Air, and the former not having opted to
appoint any subagents, it is American Airs contention
that Orient Air can claim entitlement to the disputed
overriding commission based only on ticketed sales. This is
supposed to be the clear meaning of the underscored
portion of the above provision. Thus, to be entitled to the
3% overriding commission, the sale must be made by
Orient Air and the sale must be done with the use of
American Airs ticket stocks.
On the other hand, Orient Air contends that the
contractual stipulation of a 3% overriding commission
covers the total revenue of American Air and not merely
that derived from ticketed sales undertaken by Orient Air.
The latter, in justification of its submission, invokes its
designation as the exclusive General Sales Agent of
American Air, with the corresponding obligations arising
from such agency, such as, the promotion and solicitation
for the services of its principal. In effect, by virtue of such
exclusivity, all sales of transportation11over American Airs
services are necessarily by Orient Air.
It is a well settled legal principle that in the
interpretation of a contract, the entirety thereof must be
taken into12consideration to ascertain the meaning of its
provisions. The various
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11 Rollo, p. 291.
12 NAESS Shipping Philippines, Inc. vs. NLRC, G.R. No. 73441, 4
654
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