International Films

https://www.scribd.com/doc/111188494/Agency-and-Partnership-Digests-4
Gabelman agent took responsibility of the film - Who bears the loss?
Pablito Murao - owner of Lorna Murao Industrial Commercial Enterprises business of selling and
refilling fire extinguishers
He entered into a dealership agreement with Chito Frederico for the marketing, distribution, and
refilling of fire extinguishers within Puerto Princesa City.
50% discount of fire extinguishers provided that he sets up his own sales force, acquires and
issues his own sales invoice, and posts a bond with LMICE as security for the credit line
extended to him by LMICE. Failing to comply with the conditions under the said Dealership
Agreement, private complainant Federico, nonetheless, was still allowed to act as a part-time
sales agent for LMICE entitled to a percentage commission from the sales of fire extinguishers.
ISSUE: Commission of Frederico
Frederico: 50% of gross sales
Murao: 30%
Frederico was allowed to act as a sales agent for LMICE. He can negotiate for and on behalf of
LMICE for the refill and delivery of fire extinguishers, which he, in fact, did on two occasions with
Landbank and with the City Government of Puerto Princesa. Unlike the Dealership Agreement,
however, the agreement that private complainant Federico may act as sales agent of LMICE
was based on an oral agreement.
All profits made and any advantage gained by an agent in the execution of his agency should
belong to the principal.[27] In the instant case, whether the transactions negotiated by the sales
agent were for the sale of brand new fire extinguishers or for the refill of empty tanks, evidently,
the business belonged to LMICE. Consequently, payments made by clients for the fire
extinguishers pertained to LMICE. When petitioner Huertazuela, as the Branch Manager of
LMICE in Puerto Princesa City, with the permission of petitioner Murao, the sole proprietor of
LMICE, personally picked up Check No. 611437 from the City Government of Puerto Princesa,
and deposited the same under the Current Account of LMICE with PCIBank, he was merely
collecting what rightfully belonged to LMICE. Indeed, Check No. 611437 named LMICE as the
lone payee. Private complainant Federico may claim commission, allegedly equivalent to 50%
of the payment received by LMICE from the City Government of Puerto Princesa, based on his
right to just compensation under his agency contract with LMICE,[28] but not as the automatic
owner of the 50% portion of the said payment