Angela Ojinaga vs. Estate of Perez (GR.

L-3754, November 15, 1907)

Facts: Domingo Perez died and left his estate to Manuel Achondo to administer which was later
on administered by Tomas Perez, one of the heirs. A partition of the estate of the deceased
happened and Tomas continued his role as administratix and guardian for all the persons except
Eladio Ojinaga, who for him, Tomas acted only as an agent. Tomas filed an account of his
administration in the lower court showing the net profits of the business. Other brothers refused
and claimed that the profits derived by Tomas were greater than what was shown. A final
settlement was made, Tomas agreed to pay all the other heirs except Ojinaga. Ojinaga died, his
heirs wanted the accounting set aside on the ground of fraud.

Issue: Whether or not the claim of the heirs of Ojinaga is correct?

Held: No. Tomas rendered to Ojinaga an account of his administration in which Ojinaga stated in
writing his consent to this account and left the administration of his property to Tomas. The
agreement of Ojinaga constitutes a contract between them, a contract which any other contract
can be annulled. Under the New Civil Code, In the management of property, where a principal
receives from an agent periodical statements of account and, knowing all the facts in the case,
repeatedly agrees to the correctness thereof and approves the same, the result is a species of
contract between the parties which can only be set aside upon grounds similar to those upon
which any other contract may be annulled or rescinded.