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Unformatted text preview: s a lot of transactions in Bacolod, he
could not manage the Manila firm. He therefore conferred to Valentina Olayta a general power of attorney to
manage the office. In the said GPA, Olayta can find a substitute with the same powers as Olayta has but
this is sucject to the approval in writing of Seva. Olayta made Marieta Delfin a substitute and this was
approved by Seva. Delfin made another substitute named Ralph Worrell but this time, without the approval of
Henry Lopez made transactions with Ralph Worrell believing that he is a duly authorized representative of
the firm. Worrell however, did not handle his transactions with Lopez regarding the shares of Big Wedge
Mining. Lopez demands that due to this mishandling of his shares, Seva is liable to pay him for damages.
Seva contends that he did not authorize Ralph Worrell to be a substitute and that he did not know of these
transactions, not until this present case for collection was initiated against him. Lopez, however, contends
that Delfin is aware of these transactions
TC: Ruled in favour of Seva
CA: No mention
ISSUE: Whether or not Seva could be made liable on the transaction of Ralph Worrell 26 HELD/SC: NO
Because the substitution of Ralph Worrell was made without the confirmation of Seva, this was an act that
was beyond the limits of Delfin’s authority. The SC held that without this confirmation, Seva cannot be liable
unless he ratifies the same, which did not occur in this case.
The SC concludes that when an agent or representative is empowered to delegate its power with the
express condition that the subdelegation must be in writing and approved and confirmed by the principal,
the knowledge of the substitute of transactions of a third party, which holds the representation of the
principal without proper authorization to do so, is not considered a knowledge that was made known to the
principal Art. 1894 – Responsibility of Two or More Agents Not Solidary Unless Stipulated Martinez v. Ong Pong Co, 14 Phil 726 (19...
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- Fall '14