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*
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
5. Commissions
(i) For transportation solely between points within the United States and
between such points and Canada: 7% or such
649
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America.
(ii) For transportation included in a through ticket covering
transportation between points other than those described above: 8% or
such other rate(s) as may be prescribed by the International Air
Transport Association.
10. Default
13. Termination
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3
xxx xxx xxx‰
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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 AmericanÊs services by Orient
Air Services or its sub-agents.‰ (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 sub-agents, it is American AirÊs contention
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11 Rollo, p. 291.
12 NAESS Shipping Philippines, Inc. vs. NLRC, G.R. No. 73441, 4
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„It is not denied that Orient withheld remittances but such action
finds justification from paragraph 4 of the Agreement, Exh. F,
which provides for remittances to American less commissions to
which Orient is entitled, and from paragraph 5(d) which specifically
allows Orient to retain the full amount of its commissions. Since, as
stated ante, Orient is entitled to the 3% override. AmericanÊs
premise, therefore, for the cancellation of the Agreement did not
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exist. x x x.‰
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656
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