Unformatted text preview: hority to mortgage?
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
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.
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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- Fall '14
- gutierrez hermanos, B.A. Finance Corporation