AgencyDPFebruary32014

In its capacityas agents of the insurance companies

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Unformatted text preview: able for interest thereon, in accordance with the provisions of article 1742 of the Civil Code. Art. 1897 – Agent who Acts as Such is Not Bound to Third Party E. Macias & Co. v. Warner Barnes, 43 Phil 155 (1922) GAUDIEL DOCTRINE: The agent who acts as such is not personally liable to the party with whom he contracts, unless he expressly binds himself or exceeds the limits of his authority without giving such party sufficient notice of his powers. FACTS: The plaintiff is a corporation duly registered and domiciled in Manila. The defendant is a corporation duly licensed to do business in the Philippine Islands, and is the resident agent of insurance companies "The China Fire Insurance Company, Limited, of Hongkong," "The Yang­Tsze Insurance Association Limited, of Shanghai," and "The State Assurance Company, Limited, of Liverpool. The plaintiff is an importer of textures and commercial articles for wholesale. In the ordinary course of business, it applied for, and obtained 4 policies against loss by fire. While the policies were in force, a loss occurred in which the insured property was more or less damaged by fire and the use of water resulting from the fire. The plaintiff made a claim for damages under its policies, but could not agree as to the amount of loss sustained. It sold the insured property in its then damaged condition, and brought this action against Warner, Barnes & Co., in its capacity as agents, to recover the difference between the amount of the policies and the amount realized from the sale of the property. The answer admits that the defendants is the resident agent of the insurance companies, the issuance of the policies, and that a fire occurred in the building in which the goods covered by the insurance policies were stored, and that to extinguish the fire three packages of goods were damage by water not to exceed P500, and denies generally all other material allegations of the complaint. Defendant pleads certain provisions in the policies, among which was a written notice of loss, and all other insurance and certain detailed information. It is then alleged that although frequently requested to do so,...
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