Unformatted text preview: ective buyer Oscar de Leon, without the
knowledge and consent of his principal, herein petitionerappellant Vicente Domingo. His acceptance of said
substantial monetary gift corrupted his duty to serve the interests only of his principal and undermined his
loyalty to his principal, who gave him partial advance of Three Hundred Pesos (P300.00) on his commission.
As a consequence, instead of exerting his best to persuade his prospective buyer to purchase the property
on the most advantageous terms desired by his principal, the broker, herein defendantappellee Gregorio
Domingo, succeeded in persuading his principal to accept the counteroffer of the prospective buyer to
purchase the property at P1.20/ sqm for the lot of 88,477 square meters, which is very much lower the the
price of P2.00/sqm for said lot originally offered by his principal.
The duty embodied in Article 1891 of the New Civil Code will not apply if the agent or broker acted
only as a middleman with the task of merely bringing together the vendor and vendee, who
themselves thereafter will negotiate on the terms and conditions of the transaction. Neither would
the rule apply if the agent or broker had informed the principal of the gift or bonus or profit he received from
the purchaser and his principal did not object therto. Herein defendantappellee Gregorio Domingo was not
merely a middleman of the petitionerappellant Vicente Domingo and the buyer Oscar de Leon. He was the
broker and agent of said petitionerappellant only. And therein petitionerappellant was not aware of the gift
of One Thousand Pesos (P1,000.00) received by Gregorio Domingo from the prospective buyer; much less
did he consent to his agent's accepting such a gift. 23 SC Ruling: CA’s Judgment was reversed. Art. 1892 – When Agent May Appoint a Substitute
Serona v. CA, 392 SCRA 35 (2002) VELASCO
Leonida Quilatan delivered pieces of jewelry to petitioner Virgie Serona to be sold on commission basis. By
oral agreement of the parties, petitioner shall remi...
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This document was uploaded on 03/11/2014.
- Fall '14