E-Library - Information At Your Fingertips: Printer Friendly 4 of 7 http://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/58301 We do not agree. Based on a communication sent by a certain M.K. Jin dated 10 October 2002,[14] the foreign principal had already chosen respondent from among the other candidates as BSN (bosun or boatswain). Pursuant to this communication, petitioner entered into an employment contract and hired respondent on 24 October 2002. Subsequent communications, though, show that the foreign principal approved a different candidate for the position of BSN.[15] Thus, petitioner did not deploy respondent. There was an apparent violation of the contract at the time that the foreign principal decided to promote another person as expressed in its communications dated 10 November 2002 and 14 November 2002. The vacancy for the position of boatswain ceased to exist upon the execution of the contract between petitioner and respondent on 24 October 2002, a contract subsequently approved by the POEA on 25 October 2002. Clearly, there was no vacancy when the foreign principal changed its mind, since the position of boatswain had already been filled up by respondent. The contract was already perfected on the date of its execution, which occurred when petitioner and respondent agreed on the object and the cause, as well as on the rest of the terms and conditions therein. Naturally, contemporaneous with the perfection of the employment contract was the birth of certain rights and obligations, a breach of which may give rise to a cause of action against the erring party.[16] Also, the POEA Standard Contract must be recognized and respected. Thus, neither the manning agent nor the employer can simply prevent a seafarer from being deployed without a valid reason.[17] True, the promotion and choice of personnel is an exercise of management prerogative. In fact, this Court has upheld management prerogatives, so long as they are exercised in good faith for the advancement of the employer's interest, and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements.[18] However, there are limitations on the exercise of management prerogatives, such as existing laws and the principle of equity and substantial justice.[19] Under the principle of equity and substantial justice, change of mind was not a valid reason for the non-deployment of respondent. He lost the opportunity to apply for other positions in other agencies when he signed the contract of employment with petitioner. Simply put, that contract was binding on the parties and may not later be disowned simply because of a change of mind of either one of them. The unilateral and unreasonable failure to deploy respondent constitutes breach of contract, which gives rise to a liability to pay actual damages. The sanctions provided for non-deployment do not end with the suspension or cancellation of license or the imposition of a fine and the return of all documents at no cost to the worker. They do not forfend a seafarer from instituting an action for damages 3/27/2020, 1:05 PM