Bacaltos Coal Mines v. CA

Bacaltos Coal Mines v. CA G.R. .R. No No. 114 11409 091 1

June une 29 29, 19 199 95

FACTS !n an "Aut#o$i%ation,& petitioner Bacaltos authorized Savellon, to use the coal operating contract of Bacaltos Coal Mine of which he is the proprietor , "Fo$ an' le(iti)ate *u$*ose t#at it )a' se$ve& an+ *a$ticula$l' 1- to acquire purchase orders 2- to engage in trading  /- to collect all receivables due or in arrears 4- to extend to any person or company by substitution the same extent of authority that is granted to Rene Savellon  5- in connection it# t#e *$ece+in( *a$a($a*#s to execute and sign documents, contracts, and other pertinent papers !n 19, a !rip Charter "arty was executed between Bacaltos Coal Mines #represented by Savellon$ and San Miguel !he agreement was that %or "hp &'(,((( to e *ai+ it#in seven +a's a3te$ t#e eecution o3 t#e cont$act, it lets, +e)ises the vessel to charterer SMC )%or three round trips to *avao) !he vessel was able to ma+e only one trip, so SMC led an action for specic performance 6etitione$s alle(e+ t#at Savellon was not their Chief -perating -.cer and that the powers granted to him are only those clearly expressed in the /uthorization which do not include the power to enter into any contract with SMC !SS78 :N Savellon as +ul' aut#o$i%e+ ' t#e *etitione$s to ente$ into t#e T$i* C#a$te$ 6a$t'. R7;!NG

0- !he broadest scope of Savellon1s authority is limited to the use of the coal operating contract and the clause cannot contemplate any other power not included in the enumeration or which are unrelated either to the power to use the coal operating contract or to those already enumerated  !n s#o$t, #ile t#e clause allos so)e $oo) 3o$
/uthorization that confers upon Savellon the authority to enter into any !rip Charter "arty