Commission Of Agents

It is dictum that in order for an agent to be entitled to a commission, he must be the procuring cause of the sale, which simply means that the measures employed by him and the efforts he exerted must result in a sale. (Damon vs. Antonio Brimo & Co., 42 Phil. 134; Ramos vs. CA, 63 SCRA 331). In other words, an agent receives his commission only upon the successful conclusion of a sale. (Hahn vs. CA, G.R. No. 113074, January 22, 1997, 266 SCRA 537). Conversely, it follows that where his efforts are unsuccessful, or there was no effort on his part, he is not entitled to a commission.

In this case, the contract was negotiated directly by the parties after the agency was revoked due to his refusal to reduce his commission. Revocation is allowed by law which states that the agency is revoked if the principal directly manages the business entrusted to the agent, dealing directly with third persons. (Art. 1924, NCC).

The agent was not the procuring cause of the contract between the parties, hence, he is not entitled to commission. (Sanchez vs. Medicard Phils. Inc., et al., G.R. No. 141525, September 2, 2005).