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...
View Full Document
- Fall '14
- gutierrez hermanos, B.A. Finance Corporation