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the remittance that came through the bank in June to Welch, Fairchild & Co., consisting of $13,000 of the
proceeds of this insurance. Zayco v. Serra, 49 Phil 985 (1925) ATIENZA
DOCTRINE: A contract entered into, in excess of authority, is voidable (Note: This is a 1925 case)
On February 2, 1919, Salvador Serra, Juan J. Vidauzarraga, Felix Vidauzarraga, Dionisio Vidauzarraga, and
Lazaro Mota, as parties (Palma Central Group) on the one hand, and Severo Alejano, the Estate of Hilario
Cordova, Lorenzo Zayco, the Estate of Tomasa Gemora, Rogaciano Albayda, and Josefa Pacheco, as
parties at the other side (Palmer’s Group). The two sides agree to a contract that involves the Palma Central
to constructs mills and roads for the sugar canes of Planters.
The Palma Group was did not construct the mill and did not finish the railroad and therefore, Lorenzo Zayco
brought an action against the Palma Group. Salvador Serra contends that the contract in question was null
and void because the persons who signed it on behalf of the estates of Tomasa Gemora and Hilario Cordova
were not duly authorized to represent said estates.
TC: Dismissed the complaint of Zayco
CA: No mention
ISSUE: WON the contract is null and void for being entered into without proper authority
HELD: NO. Voidable
According to the SC, Rogaciano Albayda who represented the Gemora estate was its judicial administrator
and Gregorio Cordova who signed the contract on behalf of the Cordova estate was its judicial its judicial
administrator and Greogorio Cordova who signed the contract on behalf of the Cordova estate was the de
facto administrator of that estate. Assuming that these persons exceeded their authority, the contract would
nevertheless not be an absolute nullity, but simply voidable at the instance of the parties who had been
improperly represented. It follows that under the circumstances of this case, the defendant Serra is hardly in
position to assert that the entire contr...
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This document was uploaded on 03/11/2014.
- Fall '14