AgencyDPFebruary32014

Arroyos intestate estate filed a claim in the same

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Unformatted text preview: 10) BUENAVENTURA DOCTRINE: Failure to fulfill an obligation on the part of a partner who acted as agent in receiving money for a given purpose, for which he has rendered no accounting is responsible only for the losses which, by a violation of the provisions of the law, he incurred. FACTS: On the 12th of December, 1900, the Martinez delivered P1,500 to Ong Pong Co and Ong Lay who, in a private document, acknowledged that they had received the same with the agreement, as stated by them, "that we are to invest the amount in a store, the profits or losses of which we are to divide with the former, in equal shares." Martinez filed a complaint on April 25, 1907, in order to compel Ong Pong Co and Ong Lay to render him an accounting of the partnership as agreed to, or else to refund him the P1,500 that he had given them for the said purpose. Ong Pong Co alone appeared to answer the complaint; he admitted the fact of the agreement and the delivery to him and to Ong Lay of the P1,500 for the purpose aforesaid, but he alleged that Ong Lay, who was then deceased, was the one who had managed the business, and that nothing had resulted therefrom save the loss of the capital of P1,500, to which loss Martinez agreed. TC Decision: The CFI of Manila ordered Ong Pong Co to return to Mendoza one­half of the said capital of P1,500 which, together with Ong Lay, he had received from Mendoza, to wit, P750, plus P90 as one­half of the profits, calculated at the rate of 12 per cent per annum for the six months that the store was supposed to have been open, making a total of P840, with legal interest thereon at the rate of 6 per cent per annum, from the 12th of June, 1901, when the business terminated and on which date he ought to have returned the said amount to the plaintiff, until the full payment thereof with costs. ISSUE: WON Ong Pong Co is liable and up to what extent? SC/Held: Affirmed CFI’s decision. But Ong Pong Co shall only pay P750. Ong Pong Co is LIABLE and the extent of his liability is JOINT. Ong Pong Co and Ong Lay were the administrators/managers and are obliged to render accounting. Since neither of them rendered an account, nor proved the alleged losses, they are obliged to return the capital to Martinez. Inasmuch as in this case nothing appears other than the failure to fulfill an oblig...
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This document was uploaded on 03/11/2014.

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