Agency

Render Account Article 1891

US vs. DOMINGO REYES

G.R. No. 12743
25 August 1917
Appeal from a CFI judgment
Malcolm, J.
ALLEGED PRINCIPAL: R.B. Blackman
ALLEGED AGENT: Domingo Reyes
ALLEGED THIRD PARTY:

FACTS:
Surveyor R.B. Blackman employed respondent Reyes to collect certain amounts due from
12 individuals. The total amount to collected was P860.00
Respondent was only able to collect P540.00 delivering P368.00 to Blackman and
retained the balance (P172.00)
The difficulty arose from the exact terms of the contract, which was merely an oral
agreement between Blackman and the respondent. The former claiming that respondent
will get 10% commission, and the latter claiming that the agreement was a 20%
commission.
CFI found respondent guilty of estafa.
ISSUE:
Whether respondent, as an agent [of Blackman], misappropriated the money he
collected, and is thus guilty of
estafa.
HELD: Yes. Judgment of trial court AFFIRMED.
RULING:
The Court held that under the contract, respondent was an agent who was bound to pay to
the principal ALL that he had received by virtue of the agency.

NOTE: Art. 1891 provides that every agent is bound to render an account of his
transactions and to deliver to the principal whatever he may have received by virtue of
the agency, even though it may not be owing to the principal. Even if respondent was
entitled to a commission, he cannot advance his commission by subtracting them from the
money he collected.