22. US V.

KIENE
GR NO. L-3188
MARCH 12, 1907
By: JUSTINE LIMJOCO

Petitioners: UNITED STATES

Respondents: ALEC KIENE
Ponente: CARSON, J.

DOCTRINE: Where noting to the contrary appears, the provisions of Article 1720 (Now
Art. 1891) of the Civil Code impose upon an agent the obligation to deliver to his
principal all funds collected on his account.

FACTS
 Defendant Alec Kiene was an insurance agent of China Mutual Life Insurance
Company.
 On account of the company, he collected the sum of 1,539.20 pesos.
 He failed to turn this sum over to the insurance company.
 For refusal to do so, he was convicted of the crime of estafa in the CFI of the
City of Manila.
 Counsel for defendant contends that the trial court erroneously admitted in
evidence a certain document purporting to be a contract of agency signed by
the defendant. He said that the document did not state any obligation of the
defendant to deliver to the insurance company the amount collected.
Therefore, his client is not liable to deliver the amount collected.

ISSUE: Whether or not Kiene is liable to deliver the amount collected to the insurance
company.

HELD/RATIO: YES.

"Every agent is bound to give an account of his transactions and to pay to the principal
all that he may have received by virtue of the agency, even though what has been
received is not owed to the principal."

With the existence of the agency and the collection of the funds on account of the
principal having been established, the obligation to deliver these funds to the principal
must be held to have been imposed upon the agent by virtue of the contract of agency.