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    Eurotech Industrial Technologies Inc Vs Cuizon

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    Shauna Herrera
    Eurotech Industrial Technologies, Inc. sued Edwin Cuizon and Erwin Cuizon for unpaid debts totaling P295,000. Edwin Cuizon claimed he was not personally liable as he was merely an agent of Impact Systems Sales, owned by Erwin Cuizon. The trial court dismissed Edwin Cuizon as a party. The Court of Appeals affirmed. The issue is whether Edwin exceeded his authority by signing a Deed of Assignment on behalf of Impact Systems. The Supreme Court held that Edwin did not exceed his authority, as signing the Deed of Assignment was reasonably necessary for him to protect the business of his principal, Impact Systems, given that Eurotech refused to deliver equipment Impact Systems desperately needed without settling debts. Therefore, Edwin

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    Eurotech Industrial Technologies Inc Vs Cuizon

    Uploaded by

    Shauna Herrera
    3K views2 pages
    Eurotech Industrial Technologies, Inc. sued Edwin Cuizon and Erwin Cuizon for unpaid debts totaling P295,000. Edwin Cuizon claimed he was not personally liable as he was merely an agent of Impact Systems Sales, owned by Erwin Cuizon. The trial court dismissed Edwin Cuizon as a party. The Court of Appeals affirmed. The issue is whether Edwin exceeded his authority by signing a Deed of Assignment on behalf of Impact Systems. The Supreme Court held that Edwin did not exceed his authority, as signing the Deed of Assignment was reasonably necessary for him to protect the business of his principal, Impact Systems, given that Eurotech refused to deliver equipment Impact Systems desperately needed without settling debts. Therefore, Edwin

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    Eurotech Industrial Technologies Inc vs Cuizon

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    Eurotech Industrial Technologies, Inc. sued Edwin Cuizon and Erwin Cuizon for unpaid debts totaling P295,000. Edwin Cuizon claimed he was not personally liable as he was merely an agent of Impact Systems Sales, owned by Erwin Cuizon. The trial court dismissed Edwin Cuizon as a party. The Court of Appeals affirmed. The issue is whether Edwin exceeded his authority by signing a Deed of Assignment on behalf of Impact Systems. The Supreme Court held that Edwin did not exceed his authority, as signing the Deed of Assignment was reasonably necessary for him to protect the business of his principal, Impact Systems, given that Eurotech refused to deliver equipment Impact Systems desperately needed without settling debts. Therefore, Edwin

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    3K views2 pages

    Eurotech Industrial Technologies Inc Vs Cuizon

    Uploaded by

    Shauna Herrera
    Eurotech Industrial Technologies, Inc. sued Edwin Cuizon and Erwin Cuizon for unpaid debts totaling P295,000. Edwin Cuizon claimed he was not personally liable as he was merely an agent of Impact Systems Sales, owned by Erwin Cuizon. The trial court dismissed Edwin Cuizon as a party. The Court of Appeals affirmed. The issue is whether Edwin exceeded his authority by signing a Deed of Assignment on behalf of Impact Systems. The Supreme Court held that Edwin did not exceed his authority, as signing the Deed of Assignment was reasonably necessary for him to protect the business of his principal, Impact Systems, given that Eurotech refused to deliver equipment Impact Systems desperately needed without settling debts. Therefore, Edwin

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    Eurotech Industrial Technologies, Inc. v.

    Edwin Cuizon and Erwin Cuizon


    G.R. No. 167552 April 23, 2007
    Chico-Nazario, J.
    FACTS: Eurotech is engaged in the business of importation and distribution of
    various European industrial equipment. It has as one of its customers Impact
    Systems Sales which is a sole proprietorship owned by Erwin Cuizon.
    Eurotech sold to Impact Systems various products allegedly amounting to
    P91,338.00. Cuizons sought to buy from Eurotech 1 unit of sludge pump valued
    at P250,000.00 with Cuizons making a down payment of P50,000.00. When the
    sludge pump arrived from the United Kingdom, Eurotech refused to deliver the
    same to Cuizons without their having fully settled their indebtedness to
    Eurotech. Thus, Edwin Cuizon and Alberto de Jesus, general manager of
    Eurotech, executed a Deed of Assignment of receivables in favor of Eurotech.
    Cuizons, despite the existence of the Deed of Assignment, proceeded to
    collect from Toledo Power Company the amount of P365,135.29. Eurotech
    made several demands upon Cuizons to pay their obligations. As a result,
    Cuizons were able to make partial payments to Eurotech. Cuizons total
    obligations stood at P295,000.00 excluding interests and attorneys fees.
    Edwin Cuizon alleged that he is not a real party in interest in this case.
    According to him, he was acting as mere agent of his principal, which was the
    Impact Systems, in his transaction with Eurotech and the latter was very much
    aware of this fact.
    The RTC dropped Edwin Cuizon as party defendant in the case. The Court
    of Appeals, affirmed the trial courts decision. Hence, the appeal.
    ISSUE: Whether or not Edwin exceeded his authority when he signed the Deed
    of Assignment thereby binding himself personally to pay the obligations to
    Eurotech
    HELD: No. Edwin did not exced his authority when he signed the Deed of
    Assignment. As stated in Art. 1897, The agent who acts as such is not
    personally liable to the party with whom he contracts, unless he expressly binds
    himself or exceeds the limits of his authority without giving such party sufficient
    notice of his powers. An agent, who acts as such, is not personally liable to the
    party with whom he contracts. There are 2 instances when an agent becomes
    personally liable to a third person. The first is when he expressly binds himself to
    the obligation and the second is when he exceeds his authority. In the last
    instance, the agent can be held liable if he does not give the third party sufficient
    notice of his powers. In this case, Edwin does not fall within any of the
    exceptions contained in Art. 1897. Edwin Cuizon acted well-within his authority
    when he signed the Deed of Assignment. Eurotech refused to deliver the 1 unit

    of sludge pump unless it received, in full, the payment for Impact Systems
    indebtedness. Impact Systems desperately needed the sludge pump for its
    business since after it paid the amount of P50,000.00 as downpayment it still
    persisted in negotiating with Eurotech which culminated in the execution of the
    Deed of Assignment of its receivables from Toledo Power Company. The
    significant amount of time spent on the negotiation for the sale of the sludge
    pump underscores Impact Systems perseverance to get hold of the said
    equipment. Edwins participation in the Deed of Assignment was reasonably
    necessary or was required in order for him to protect the business of his
    principal. Therefore, Edwin Cuizon acted within the scope of his authority and is
    not personally liable for the obligations to Eurotech.

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