AgencyDPFebruary32014

Garrucho was not authorized to execute promissory

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Unformatted text preview: act here in question was null and void ab initio. Notes: 50 On the issue of the construction of the Mill, the SC held that since the Planters group was not able to produce the quantity of sugar cane as agreed upon, it is therefore useless for the Mill to be constructed. On the issue of the railroad, the SC held that the Palma Central Group was able to show that the delay was due to force Majure. PNB v. Agudelo, 58 Phil 655 (1933) BUENAVENTURA DOCTRINE: When an agent negotiates a loan in his personal capacity and executes a promissory note under his own signature, without express authority from his principal, giving as security therefor real estate belonging to the letter, also in his own name and not in the name and representation of the said principal, the obligation do constructed by him is personal and does not bind his aforesaid principal. FACTS: ∙ On November 9, 1920, the defendant­appellant Paz Agudelo y Gonzaga executed in favor of her nephew, Mauro A. Garrucho, the document conferring upon him a special power of attorney sufficiently broad in scope to enable him to sell, alienate and mortgage in the manner and form he might deem convenient, all her real estate situated in the municipalities of Murcia and Bacolod, Occidental Negros, consisting in lots Nos. 61 and 207 ∙ On December 22, 1920, Amparo A. Garrucho executed the document whereby she conferred upon her brother Mauro A Garrucho a special power of attorney sufficiently broad in scope to enable him to sell, alienate, mortgage or otherwise encumber, in the manner and form he might deem convenient, all her real estate situated in the municipalities of Murcia and Bago, Occidental Negros. ∙ Nothing in the aforesaid powers of attorney expressly authorized Mauro A. Garrucho to contract any loan nor to constitute a mortgage on the properties belonging to the respective principals, to secure his obligations. ∙ On December 23, 1920, Mauro A. Garrucho executed in the favor of the Philippine National bank, whereby h...
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This document was uploaded on 03/11/2014.

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