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Unformatted text preview: ed. Gutierrez Hermanos v. Oria Hermanos, 30 Phil. 491 (1915) GATCHALIAN
Sorry for the long digest. Super long and confusing case. I would suggest that you read the full text.
DOCTRINE: When an agent in executing the orders and commissions of his principal carries out the
instructions he has received from his principal, and does not appear to have exceeded his authority or to
have acted with negligence, deceit, or fraud, he cannot be held responsible for the failure of his principal to
accomplish the object of the agency.
FACTS: Gutierrez Hermanos, a mercantile firm through his counsel filed a written complaint against the
commercial concern of Oria Hermanos & Co., alleging therein as a cause of action that between plaintiff and
defendant there have existed commercial relations which gave rise to the opening of a mutual current
account, under the name of Oria Hermanos & Co., on the books of the plaintiff Gutierrez Hermanos.
Thereon, plaintiff transmitted to defendant an abstract of the latter’s current account which showed a
balance in plaintiff’s favor and which was approved by defendant, Oria Hermanos & Co., by a letter. On May
25, 1909, plaintiff notified defendant that the current account existing between them would be closed at the
end of thirty days counting from that date, at the expiration of which period defendant should pay any debit
balance that might be owing. Later on Gutierrez Hermanos transmitted to the defendant, Oria Hermanos &
Co., the statement of the latter’s current account up to that date and, confirming its previous letter to the
defendant of May 25, 1909, called attention to the necessity of paying the balance. The defendant firm,
notwithstanding the said demands and others subsequently made, and without having made any objection
whatever to the said statement of account, refused to pay the principal and interest owing on the said 8 account. Plaintiff’s counsel therefore prayed that Oria Hermanos & Co. be sentenced to pay the sum of
P147,204.28, besides the interest.
Defendant filed its answer setting up four cross complaints and six counterc...
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- Fall '14