Voidable according to the sc rogaciano albayda who

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Unformatted text preview: jurisprudence that one who has intervened in the making of a contract in the character of agent cannot be permitted to intercept and appropriate the thing which the principal is bound to deliver, and thereby make performance by the principal impossible. The agent in any event must be precluded from doing any positive act that could prevent performance on the part of his principal. CHARACTERS: PNB–plaintiff, lender of money Welch, Fairchild & Co.–defendant; owner of 325 shares of La Compania; agent who borrowed money for the principal La Compania Naviera Inc.–not a party in the case at bar; buyer of the ship; principal FACTS: ● La Compania bought Benito Juarez (a ship). ● While the ship was being delivered to the agent of the buyer in San Francisco, it was found out that it needed repairs before it could be transported to the Philippines. ● Because of this, defendant wrote a letter to PNB to to release the money and make payment for the 48 ● ● ● ● ● ● ● ● ● ● ● ● ● ship upon Welch &Co.’s application without requiring the delivery of the bill of sale or insurance policy. La Compania also addressed a letter to PNB confirming the request and authorizing the bank to send the necessary cablegram. PNB sent the cablegram authorizing payment without the production of the bill of sale or insurance policy. After the repair of the ship, it was insured by Welch & Co to the value of $150,000 and was dispatched on its voyage to the Phils. The vessel encountered a storm off the Island in Hawaii and became a total loss. When the insurance was taken out to cover the voyage to Manila, no policy was issued by any insurer; but the insurance was placed by Welch & Co. of San Francisco, upon the instructions of Welch, Fairchild & Co., as agents of the Compaña Naviera, and it was taken out in the ordinary course of business to protect the interests of all parties concerned. The risk was distributed among several companies, some in remote centers; and it was many months before Welch & Co., of San Francisco, had collected the full amount due from the insurers. However, as the money came to the hands of Welch & Co., of San Francisco, it was remitted by draft or telegraphic transfer to Welch, Fairchild & Co. in...
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This document was uploaded on 03/11/2014.

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