AGENCY AND PARTNERSHIP - DIGEST (12) SYJUCO Vs SYJUCO

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PROPERTY SLC-LAW

CASE 1: Sevilla v CA
TOPIC:

G.R. No. L-13471             January 12, 1920


PETITIONERS: VICENTE SY-JUCO and CIPRIANA VIARDO
RESPONDENTS: SANTIAGO V. SY-JUCO
CASE SUMMARY:

FACTS:
The defendant was appointed by the plaintiffs administrator of their property and acted as such until
June 30, 1916, when his authority was cancelled. The plaintiffs are defendant's father and mother who
allege that during his administration the defendant acquired the property claimed in the complaint in his
capacity as plaintiffs' administrator with their money and for their benefit.
the trial court rendered his decision; . That the defendant return to the plaintiffs the launch Malabon,
in question, and execute all the necessary documents and instruments for such delivery and the
registration in the records of the Custom House of said launch as plaintiffs' property;
Regarding the launch Malabon, it appears that in July, 1914, the defendant bought it in his own
name from the Pacific Commercial Co., and afterwards registered it at the Custom House. But his does
not necessarily show that the defendant bought it for himself and with his own money, as he claims

ISSUE:

RULING:

This transaction was within the agency which he had received from the plaintiffs. The fact that he has
acted in his own name may be only, as we believe it was, a violation of the agency on his part. As
the plaintiffs' counsel truly say, the question is not in whose favor the document of sale of the
launch is executed nor in whose name same was registered, but with whose money was said
launch bought. The plaintiffs' testimony that it was bought with their money and for them is
supported by the fact that, immediately after its purchase, the launch had to be repaired at their
expense, although said expense was collected from the defendant. I the launch was not bought for
the plaintiffs and with their money, it is not explained why they had to pay for its repairs.

From the rule established in article 1717 of the Civil Code that, when an agency acts in his own name, the
principal shall have no right of action against the person with whom the agent has contracted, cases
involving things belonging to the principal are excepted. According to this exception (when things
belonging to the principal are dealt with) the agent is bound to the principal although he does not assume
the character of such agent and appears acting in his own name (Decision of the Supreme Court of
Spain, May 1, 1900). This means that in the case of this exception the agent's apparent representation
yields to the principal's true representation and that, in reality and in effect, the contract must be
considered as entered into between the principal and the third person; and, consequently, if the
obligations belong to the former, to him alone must also belong the rights arising from the contract. The
money with which the launch was bough having come from the plaintiff, the exception established in
article 1717 is applicable to the instant case.

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