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    Phil Bank of Commerce

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    Apple Panganiban
    Aruego obtained credit from Philippine Bank of Commerce to facilitate the printing of his periodical. The printer would draw drafts on the bank for the printing costs, which Aruego was responsible for accepting. Aruego argued he signed as an agent of Philippine Education Foundation Company, where he was president. However, the court ruled Aruego was personally liable because he failed to disclose that he was signing as a representative of the company. Under relevant law, merely describing oneself as an agent without disclosing the principal does not exempt one from personal liability.

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    Phil Bank of Commerce

    Uploaded by

    Apple Panganiban
    13 views1 page
    Aruego obtained credit from Philippine Bank of Commerce to facilitate the printing of his periodical. The printer would draw drafts on the bank for the printing costs, which Aruego was responsible for accepting. Aruego argued he signed as an agent of Philippine Education Foundation Company, where he was president. However, the court ruled Aruego was personally liable because he failed to disclose that he was signing as a representative of the company. Under relevant law, merely describing oneself as an agent without disclosing the principal does not exempt one from personal liability.

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    Aruego obtained credit from Philippine Bank of Commerce to facilitate the printing of his periodical. The printer would draw drafts on the bank for the printing costs, which Aruego was responsible for accepting. Aruego argued he signed as an agent of Philippine Education Foundation Company, where he was president. However, the court ruled Aruego was personally liable because he failed to disclose that he was signing as a representative of the company. Under relevant law, merely describing oneself as an agent without disclosing the principal does not exempt one from personal liability.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views1 page

    Phil Bank of Commerce

    Uploaded by

    Apple Panganiban
    Aruego obtained credit from Philippine Bank of Commerce to facilitate the printing of his periodical. The printer would draw drafts on the bank for the printing costs, which Aruego was responsible for accepting. Aruego argued he signed as an agent of Philippine Education Foundation Company, where he was president. However, the court ruled Aruego was personally liable because he failed to disclose that he was signing as a representative of the company. Under relevant law, merely describing oneself as an agent without disclosing the principal does not exempt one from personal liability.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Philippine Bank of Commerce vs.

    Aruego
    GR L-25836-37, 31 January 1981, 102 scra 530
    --agents

    FACTS:
    To facilitate payment of the printing of a periodical called World Current Events.,
    Aruego, its publisher, obtained a credit accommodation from the Philippine Bank of
    Commerce. For every printing of the periodical, the printer collected the cost of printing
    by drawing a draft against the bank, said draft being sent later to Aruego for
    acceptance. As an added security for the payment of the amounts advanced to the
    printer, the bank also required Aruego to execute a trust receipt in favor of the bank
    wherein Aruego undertook to hold in trust for the bank the periodicals and to sell the
    same with the promise to turn over to the bank the proceeds of the sale to answer for
    the payment of all obligations arising from the draft. The bank instituted an action
    against Aruego to recover the cost of printing of the latters periodical. Aruego however
    argues that he signed the supposed bills of exchange only as an agent of the Philippine
    Education Foundation Company where he is president.

    ISSUES:
    Whether Aruego can be held liable by the petitioner although he signed the supposed
    bills of exchange only as an agent of Philippine Education Foundation Company.

    RULING:
    Aruego did not disclose in any of the drafts that he accepted that he was signing as
    representative of the Philippine Education Foundation Company. For failure to disclose
    his principal, Aruego is personally liable for the drafts he accepted, pursuant to Section
    20 of the NIL which provides that when a person adds to his signature words indicating
    that he signs for or on behalf of a principal or in a representative capacity, he is not
    liable on the instrument if he was duly authorized; but the mere addition of words
    describing him as an agent or as filing a representative character, without disclosing his
    principal, does not exempt him from personal liability.

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