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Unformatted text preview: for him to use in his business. Also, that notwithstanding this distribution of the amount borrowed, he assumes liability for the whole sum of 3,500 pesos, which he promises to repay in current gold or silver coin, without discount, in this city on the date of the maturity of the loan. If he cannot pay, he would be liable for all expenses incurred and damages suffered by his creditor by reason of his failure to comply with any or all of the conditions stipulated herein, and to pay further interest at the rate of 1 per cent per month from the date of default until the debt is fully paid. ● Grupe pledges as special security for the payment of the debt 13 shares of stock in the "Compañia de los Tranvias de Filipinas," which shares he has delivered to his creditor duly indorsed so that the latter in case of his insolvency may dispose of the same without any further formalities. ● To secure the payment of the 2,200 pesos delivered to Dolores Orozco, he mortgages the house referred in the POA. ● Dolores Orozco states that, in accordance with the requirement contained in the power of attorney executed by Vargas to Grupe, she appears for the purpose of confirming the mortgage created upon the property in question. ● Tuason accepts all rights and actions accruing to him under his contract. instrument was duly recorded in the Registry of Property. RTC & CA: not mentioned Issue: WON the defendant (Dolores) is responsible to pay the Php 2,200? Held: YES. Dolores’ contentions that the instrument is evidence of a debt personally incurred by Enrique Grupe for his own benefit, and not for his principal and that Grupe, by the terms of the agreement, bound himself personally to pay the debt cannot be sustained. The agreement, so far as that amount is concerned, was signed by Grupe as attorney in fact for Vargas. Pursuant to instructions contained in the power of attorney the money was delivered to Varga's wife, the defendant in this case. To secure the payment of the debt, Varga's property was mortgaged. His wife took part in the execution of t...
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This document was uploaded on 03/11/2014.

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