AgencyDPFebruary32014

They said nothingabout whether or not their agentwas

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Unformatted text preview: e deed that in case the defendants failed to pay the stipulated interest and the taxes on the real property mortgaged and if the plaintiff were compelled to bring an action to recover his credit, said defendants would be obliged to pay 10 per cent more on the unpaid capital, as fees for the plaintiff's attorneys. The mortgage so constituted was registered in the registry of deeds of the Province of Occidental Negros and noted on the back of the transfer certificate of title. Defendants failed to pay the interests at maturity which should have been paid one year in advance. Hence, the plaintiff seeks to have the property subject of the mortgage, foreclosed. CFI RULING: The court absolved the defendants from the complaint and stating: That of the capital of P28,000 referred to in Exhibit A, the defendants were liable only for the sum of P14,451.71; that the transactions and negotiations specified in Exhibit A as well as the interest charged are usurious; that the sum of P14,778.77 18 paid by the defendants to the plaintiff should be applied to the payment of the capital of P14,451.71; that the plaintiff must refund the sum of P3,327.06 to the defendants and, lastly, he must pay the costs. ISSUE: Whether the CFI erred for not having declared that the defendants ratified all the obligations contracted by their attorney in fact. Whether the CFI erred in not declaring that by virtue of the authority conferred by the defendants, agent Yulo was authorized to borrow money and invest it as he wished, without being obliged to apply it necessarily for the benefit of his principals. (the Court concludes that these assignments of error are unfounded) SC RULING: These assignments of errors refer to the interpretation and scope of the power of attorney and to the computation of the capital and the interest to be paid by the defendants and, whether or not the latter are obliged to pay the fees of the attorney for the plaintiff. For this reason, this court passes upon them jointly. The pertinent clauses of the power of attorney from which may be determined the intention of the principals in authorizing their...
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