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Unformatted text preview: ept on the books of G. & R. Aboitiz. The business of Aboitiz & Co. did not prosper under De Silva's management and in October, 1920, Ramon Aboitiz, at the urgent request of Guillermo Aboitiz, returned to the Philippine Islands and De Silva was promptly ousted from the management of the business of the corporation. In the meantime, the defendants had, according to the books of account of Aboitiz & Co., defaulted in the payment of the installments due on the purchase price under their agreement, and after fruitless negotiations for a settlement between the parties, this action was finally brought. RTC : Trial court held that as the books of account of Aboitiz & Co. were under the control of De Silva and as the entries in them were made under his direction, he was estopped from questioning the correctness of the entries there found, and judgment was rendered against the defendants for the sum of P154,298.88, the balance in favor of the plaintiff appearing upon said books, together with interests at the rate of 7 per cent per annum from December 31, 1920, with costs. The court further found that the attachment above­mentioned was wrongful and rendered judgment against the plaintiff on the defendant De Silva's cross­complaint in the sum of P6,000. CA not mentioned Issue: WON the liability of the defendants under the agreement (Hipoteca­Venta) had, with the plaintiff's implied consent, been transferred to Aboitiz & Co. Defendant­Appellant’s claim: Since there had been a novation of the original agreement the action, therefore, should have been directed against Aboitiz & Co. and not against the defendants individually. Held: NO. It is true that the three defendants transferred all the assets and liabilities of G. & R. Aboitiz to the corporation Aboitiz & Co. , and that at the time at least two of the defendants, Guillermo and Vidal Aboitiz, held a general power of attorney from the plaintiff. But, in the first place, the defendants appear to have acted for themselves only and none of them pretended to act on behalf of Ramon Aboitiz; in the second place, the defendant's liability under the agreement (“Hip...
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This document was uploaded on 03/11/2014.

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