Unformatted text preview: t the Heredia had in his hands that amount of money, the
property of her coplaintiff, Marciana Canon, she proposed that they make a joint investment in the 7 land.
A Deed of Conditional Sale was executed with a right to repurchase at the end of 1yr and obligating
himself to make monthly payments in consideration of the right to retain the land in possession in
sufficient amount to bring 17% interest per annum on Nepomuceno and Canon’s investments.
● The title to the land under the deed was placed in the name of Heredia and he extended the period
within which the vendor had the privilege of repurchase.
● Nepomuceno and Canon insisted that Heredia took the deed to the land in his own name without
their knowledge or consent but unable to substantiate their claim.
● A year after the transaction, a cloud was cast on the title to the land by the institution of
proceedings for the recovery of possession by third parties
○ With this, plaintiffs initiated an action seeking to recover from Heredia the whole of the
amount of money they invested with interest from the date of investment, alleging that the
purchase of the land was not made in accordance with their (principal: Nepomuceno and
Canon) instructions, or on their account.
TC: favored Nepomuceno and Canon
2. Whether or not Heredia was an agent of the plaintiffs (Nepomuceno and Canon). YES
Whether or not Heredia exercised reasonable care and diligence in the performance of his duty as
agent. YES Held:
Heredia acted merely as the agent for the plaintiffs throughout the entire transaction; that the purchase of
the land was made not only with their full knowledge and consent, but at their suggestion; and that after the
purchase had been effected, the plaintiffs, with full knowledge of the facts, approved and ratified the actions
of their agent in the premises. There is nothing in the record, which would indicate that the defendant failed
to exercise reasonable care and diligence in the performance of his duty as such agent, or that he
undertook to guarantee the vendor’s title to the land purchased by direction of the plaintiffs.
SC: Judgment revers...
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- Fall '14
- gutierrez hermanos, B.A. Finance Corporation