AgencyDPFebruary32014

Toyotashawincvca244scra3201995velasco facts luna l

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Unformatted text preview: hority to mortgage? Held: The authority to borrow money, conferred on an agent, must be created by express terms or necessarily implied from the nature of the agency, for authority to borrow money is on of the most dangerous powers a principal can confer upon an agent. A power of attorney, like any other instrument, is to be construed according to the natural import of its language; and the authority which the principal conferred upon his agent is not to be extended by implication beyond the natural and ordinary significance of the terms in which that authority is given. The attorney only has such authority as the principal has chosen to confer upon him, and one dealing with him must ascertain at his own risk whether his acts will bind the principal. No authority of any court has been cited and none will ever be found holding that a power “to sign, seal and execute, and as may act and deed, deliver, any lease, any other deed for conveying of any real or personal property,” or any similar language, standing alone and within itself, carries it or implies the power to borrow money or to execute a real mortgage to secure the payment of a debt. Bacaltos Coal Mines v. CA, 245 SCRA 460 (1995) SUPAPO Doctrines: 1. Every person dealing with an agent is put upon inquiry and must discover upon his peril the authority of the agent. 2. The authorization is a special power of attorney for it refers to a clear mandate specifically authorizing the performance of a special power and of express acts assumed therein. 3. Rule that between two innocent parties, the one who made it possible for the wrong to be done should be the one to bear the resulting loss. Facts: German Bacaltos granted Rene Savellon a written authorization to use the coal operating contract of BACALTOS COAL MINES of which the former is the proprietor. Thereafter, Savellon entered a Trip Charter Party with SMC wherein vessel M/V Premship II (owned by Bacaltos Coal Mines) will be chartered to SMC for three round trips to Davao. As payment of the...
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