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as in the present case, within the scope of his authority. (Art. 1727 of the Civil Code.) The fact that the agent
has also bound himself to pay the debt does not relieve from liability the principal for whose benefit the debt
was incurred. The individual liability of the agent constitutes in the present case a further security in favor of
the creditor and does not affect or preclude the liability of the principal. 34 Facts: The defendant's husband (Juan de Vargas y Amaya), executed a power of attorney to Enrique Grupe,
authorizing him, among other things, to dispose of all his property, and particularly of a certain house and lot
known as No. 24 Calle Nueva, Malate, in the city of Manila, for the price at which it was actually sold. He
was also authorized to mortgage the house for the purpose of securing the payment of any amount
advanced to his wife, Dolores Orozco de Rivero, who, inasmuch as the property had been acquired with
funds belonging to the conjugal partnership, was a necessary party to its sale or incumbrance.
Enrique Grupe and Dolores Orozco de Rivero obtained a loan from the plaintiff secured by a mortgage on the
property referred to in the power of attorney. In the caption of the instrument evidencing the debt it is stated
that Grupe and Dolores Orozco appeared as the parties of the first part and Gonzalo Tuason, the plaintiff, as
the party of the second part; that Grupe acted for himself and also in behalf of Juan Vargas by virtue of the
power granted him by the latter, and that Dolores Orozco appeared merely for the purpose of complying with
the requirement contained in the power of attorney.
Items that appeared in the body of the instrument:
● Grupe acknowledges his receipt from Tuason a loan after deducting therefrom the interest agreed
upon (3,500 pesos in cash). Such sum was promised by Grupe to pay within a year from the date
the instrument was made.
● From the 3,500, 2,200 was delivered to Dolores Orozco. The remaining 1,300 was retained...
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- Fall '14
- gutierrez hermanos, B.A. Finance Corporation