CATHAY PACIFIC AIRWAYS VS VASQUEZ

FACTS:

Facts:

Spouses Daniel and Maria Luisa Vasquez booked their return flight to Manila with Cathay Pacific. Upon
boarding, they were informed by the ground stewardess that their seat was changed from business class
to first class. The spouses refused the upgrade, but they eventually gave in since they were told that if
they would not avail of the privilege, they would not be allowed to take the flight. Aggrieved, Spouses
Vasquez filed a complaint for damages before the RTC-Makati City against Cathay Pacific.

Issues:

Whether the petitioner is liable for breach of contract of carriage when it upgraded the respondents
seat accommodation;

Ruling:

1. Yes, Cathay pacific breached its contract of carriage with the Spouses. Breach of contract is defined as
the failure without legal reason to comply with the terms of a contract. The contract between the
parties was for Cathay to transport the Spouses to Manila on a Business Class. The Spouses should have
been consulted first whether they wanted to avail themselves of the privilege or would consent to a
change of seat accommodation before their seat assignments were given to other passengers. Cathay
should not have insisted on the upgrade over the spouses' vehement objection, hence, the breach of the
contract of carriage.