I. ESSENTIAL CHARACTERISTICS CASE 3 OF 1.

DEED OF ASSIGNMENT CLEARLY SATES THAT EDWIN SIGNED AS SALES

4 MANAGER; ACTED WITHIN AUTHORITY
EUROTECH INDUSTRIAL TECHNOLOGIES vs. CUIZON April 23, 2007 a. Position of manager presupposes degree of confidence and grant of broad
G.R. No. 167552 J. Chico-Nazario powers with which to conduct the business of the principal
b. Participation in Deed was reasonably necessary so to not adversely affect
DOCTRINE: the business of his principal or violate his fiduciary relation with him
PRINCIPLE of contract of agency is to accomplish results by using the services of others
PURPOSE is to extend the personality of the principal or party for whom another acts from OBITER DICTA
whom s/he derives the authority to act
BASIS is representation ART 1987 OF CC ON EXCESS OF AUTHORITY DOES NOT HOLD THAT BOTH AGENT
QUI FACIT PER ALIUM FACIT PER SE - legal/juridical presence of principal AND PRINCIPAL SHOULD BE LIABLE TO OTHER CONTRACTING PARTY

IMPORTANT RULING RELATED TO THE PROVISION/DOCTRINE:

TWO INSTANCES WHEN AGENT BECOMES PERSONALLY LIABLE TO 3RD PERSON:
1. When he expressly binds himself to the obligation
2. When he exceeds his authority (without giving sufficient notice of his powers to 3 rd person)

FACTS:
1. PETITIONER EUROTECH: engaged in business of importation and distribution of
European industrial equipment for customers in the PH
a. IMPACT SYSTEMS SALES: sole proprietorship owned by ERWIN Cuizon
b. EDWIN Cuizon is sales manager
2. Jan to April: Impact Systems sought to buy one unit sludge pump valued at P 250k
with down payment of P 50k
a. Petitioner refused to deliver sledge pump without their having fully settled
their indebtedness to petitioner
i. Deed of Assignment of receivables was signed between EDwin
and the GM of Impact Systems
ii. Sledge pump delivered to Impact Systems as per Deed of Assign.
3. Unbeknownst Eurotech, Impact Sales proceeded to collect from TOLEDO POWER
COMPANY ~ P 365k (check voucher + receipt issued by Impact Systems as evidence)
a. Eurotech then made several demands to Impact to pay their obligations
i. Impact made partial payments but Eurotech’s counsel later sent
final demand letter and instituted complaint for sum of money,
damages, with application for preliminary attachment
b. Disagreements re total indebtedness (295k or 220k)
4. EDwin Cuizon alleged he is not a real party in interest and merely an agent of his
principal, Impact Systems, and that Eurotech was aware of this
a. Eurotech contends that ERwin collected the receivables from Toledo Power
Co., notwithstanding the existence of the Deed of Assignment signed by
EDwin on behalf of Impact and thus repudiated EDwin’s power to sign the
Deed as per ERwin's actions.
b. Notes fact that respondents are full-blooded brothers (fraudulent scheme)
5. EXISTENCE of agency not in dispute but the limits of EDwin's authority

ISSUES: W/N EDwin exceeded his authority when he signed the Deed of Assignment [NO]

RULING: