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Unformatted text preview: as the acknowledgment receipt, Exhibit B, does not contain any such limitation.
Neither does it appear that petitioner was verbally forbidden by Quilatan from passing on the jewelry to
another person before the acknowledgment receipt was executed or at any other time. Thus, it cannot be
said that petitioner’s act of entrusting the jewelry to Labrador is characterized by abuse of confidence
because such an act was not proscribed and is, in fact, legally sanctioned. Art. 1893 – Right of Principal Against Substitute
Del Rosario v. La Badenia, 33 Phil 316 (1916) VILLAFUERTE
● General agent Aragon was acting as a general agent since it was not shown what limitations were
placed upon his powers to act for the corporation; his powers appear to have been very broad and
no evidence that he acted in excess of authority in extending credit on behalf of the agency.
● Principal did not prohibit agent to appoint substitute Company was informed that the spouses were
acting as subagents of Aragon and recognized them as such, as proven by the letters of the corp.;
it was clear that the corp. did not consider them as independent merchant. Facts: Defendant La Badenia, with head office in Manila, makes and sells tobacco products. Celestino
Aragon, a general agent of the corporation, went to Legaspi, Albay to conduct the selling campaign. Aragon
established a central distributing agency or depot with the plaintiff Teofila del Rosario de Costa, nominally in
charge, though her husband, Bernardino Costa appears to have been the actual manager of the agency.
The goods received by the Legaspi agency from the factory in Manila are charged against Teofila del Rosario
Costa, while credits are given on various items, such as, withdrawals of goods from the depository at
Legaspi shipped to other towns, remittances made to the head office in Manila, money paid over to the
general agent, advertising expenses, commissions on sales, salaries of employees [other people hired by
Aragon], and other expenses incident to the conduct of business...
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- Fall '14