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Unformatted text preview: he fault and negligence of
the solicitor, the sentencing court, which denied the indemnity for losses and damages, has not
committed a violation of the said articles of the code, because established losses are not involved
We consider that the above doctrine established is sufficient for the decision of this suit wherein established
losses are not involved, and which has also been based on the unsubstantiated supposition of the injustice
of the judgment in the former suit which became final owing to the expiration of the period allowed for appeal.
BA Finance v. CA, 201 SCRA 157 (1991) CAMERINO
DOCTRINE: Art. 1884. The agent is bound by his acceptance to carry out the agency, and is liable for the
damages which, through his nonperformance, the principal may suffer
FACTS: Private respondents Manuel Cuady and Lilia Cuady obtained from Supercars, Inc. a credit of
P39,574.80 for the purchase of a Ford Escort 1300, fourdoor sedan. Said obligation was evidenced by a
promissory note. To secure the faithful and prompt compliance of the obligation under the said promissory
note, the Cuady spouses constituted a chattel mortgage on the aforementioned motor vehicle.
Supercars, Inc. later assigned the promissory note, together with the chattel mortgage, to B.A. Finance
Corporation. The Cuadys paid a total of P36,730.15 to the B.A. Finance Corporation, thus leaving an unpaid
balance of P2,344.65. In addition thereto, the Cuadys owe B.A. Finance Corporation P460.00 representing
penalties or surcharges for tardy monthly installments.
Parenthetically, the B.A. Finance Corporation, as the assignee of the mortgage lien obtained the renewal of
the insurance coverage over the aforementioned motor vehicle, when the Cuadys failed to renew said
insurance coverage themselves. Under the terms and conditions of the said insurance coverage, any loss
under the policy shall be payable to the B.A. Finance Corporation.
The subject vehicle figured in an accident and was badly damaged. The...
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This document was uploaded on 03/11/2014.
- Fall '14