G.R. No.

6906 September 27, 1911

FLORENTINO RALLOS, ET AL., plaintiff-appellee,
vs.
TEODORO R. YANGCO, defendant-appellant.
Mariano Escueta, for appellant.
Martin M. Levering, for appellees.
MORELAND, J.:
This is an appeal from a judgment of the Court of First Instance of the
Province of Cebu, the Hon. Adolph isli!enus presiding, in favor of the
plaintiffs, in the sum of P",#$%.&', (ith interest at ) per cent per annum from
the month of *ul+, ",&,, (ith costs.
The defendant in this case on the -%th da+ of .ovember, ",&%, sent to the
plaintiff Florentino /allos, among others, the follo(ing letter0
CI/C12A/ .3. ".
4A.I2A, November 27, 1907
4/. F23/5.TI.3 /A2236, Cebu.
75A/ 6I/0 I have the honor to inform +ou that I have on this date
opened in m+ steamship office at .o. ")$ 4uelle de la /eina,
8inondo, 4anila, P. I., a shipping and commission department for
bu+ing and selling leaf tobacco and other native products, under the
follo(ing conditions0
". hen the consignment has been received, the consignor thereof
(ill be credited (ith a sum not to e9ceed t(o-thirds of the value of the
goods shipped, (hich ma+ be made available b+ acceptance of a
draft or (ritten order of the consignor on five to ten da+:s sight, or b+
his ordering at his option a bill of goods. In the latter case he must
pa+ a commission of - per cent.
-. .o draft or (ritten order (ill be accepted (ithout previous notice
for(arding the consignment of goods to guarantee the same.
$. 59penses of freight, hauling and ever+thing necessar+ for dul+
e9ecuting the commission (ill be charged in the commission.
;. All advances made under sections <"= and <$= shall bear interest at
"& per cent a +ear, counting b+ the sale of the goods shipped or
remittance of the amount thereof.
#. A commission of - > per cent (ill be collected on the amount
reali!ed from the sale of the goods shipped.
). A Pa+ment (ill be made immediatel+ after collection of the price of
the goods shipped.
%. 3rders (ill be ta?en for the purchase of general merchandise,
ship-stores, cloths, etc., upon remittance of the amount (ith the
commission of - per cent on the total value of the goods bought.
59penses of freight, hauling, and ever+thing necessar+ for properl+
e9ecuting the commission (ill be charged to the consignor.
'. The consignor of the good ma+ not fi9 upon the consignee a longer
period than four months, counting from the date of receipt, for selling
the same@ (ith the understanding that after such period the
consignee is authori!ed to ma?e the sale, so as to prevent the
advance and cost of storage from amounting to more than the actual
value of said goods, as has often happened.
,. The shipment to the consignors of the goods ordered on account
of the amount reali!ed from the sale of the goods consigned and of
the goods bought on remittance of the value thereof, under sections
<"= and <$=, (ill not be insured against ris? b+ sea and land e9cept on
(ritten order of the interested parties.
"&. 3n all consignments of goods not insured according to the ne9t
preceding section, the consignors (ill bear the ris?.
"". All the foregoing conditions (ill ta?e effect onl+ after this office
has ac?no(ledged the consignor:s previous notice.
"-. All other conditions and details (ill be furnished at the office of
the undersigned.
If +ou care to favor me (ith +our patronage, m+ office is at .o. ")$
4uelle de la /einna, 8inondo, 4anila, P. I., under the name of
ATeodoro /. Bangco.A In this connection it gives me great pleasure to
introduce to +ou 4r. Florentino Collantes, upon (hom I have
conferred public po(er of attorne+ before the notar+, 4r. Perfecto
6alas /odrigue!, dated .ovember "), ",&%, to perform in m+ name
and on m+ behalf all acts necessar+ for carr+ing out m+ plans, in the
belief that through his ?no(ledge and long e9perience in the
business, along (ith m+ commercial connections (ith the merchants
of this cit+ and of the provinces, I ma+ hope to secure the most
advantageous prices for m+ patrons. 4r. Collantes (ill sign b+ po(er
of attorne+, so I beg that +ou ma?e due note of his signature hereto
affi9ed.
Cer+ respectfull+,
<6gd.= T. /. BA.DC3.
<6gd.= F. C322A.T56.
Accepting this invitation, the plaintiffs proceeded to do a considerable
business (ith the defendant through the said Collantes, as his factor, sending
to him as agent for the defendant a good deal of produce to be sold on
commission. 2ater, and in the month of Februar+, ",&,, the plaintiffs sent to
the said Collantes, as agent for the defendant, -"' bundles of tobacco in the
leaf to be sold on commission, as had been other produce previousl+. The
said Collantes received said tobacco and sold it for the sum of P",%;;. The
charges for such sale (ere P-&).,). leaving in the hands of said Collantes the
sum of P",#$%.&' belonging to the plaintiffs. This sum (as, apparentl+,
converted to his o(n use b+ said agent.
It appears, ho(ever, that prior to the sending of said tobacco the defendant
had severed his relations (ith Collantes and that the latter (as no longer
acting as his factor. This fact (as not ?no(n to the plaintiffs@ and it is
conceded in the case that no notice of an+ ?ind (as given b+ the defendant to
the plaintiffs of the termination of the relations bet(een the defendant and his
agent. The defendant refused to pa+ the said sum upon demand of the
plaintiffs, placing such refusal upon the ground that at the time the said
tobacco (as received and sold b+ Collantes he (as acting personall+ and not
as agent of the defendant. This action (as brought to recover said sum.
As is seen, the onl+ Euestion for our decision is (hether or not the plaintiffs,
acting in good faith and (ithout ?no(ledge, having sent produce to sell on
commission to the former agent of the defendant, can recover of the defendant
under the circumstances above set forth. e are of the opinion that the
defendant is liable. Having advertised the fact that Collantes (as his agent
and having given them a special invitation to deal (ith such agent, it (as the
dut+ of the defendant on the termination of the relationship of principal and
agent to give due and timel+ notice thereof to the plaintiffs. Failing to do so, he
is responsible to them for (hatever goods ma+ have been in good faith and
(ithout negligence sent to the agent (ithout ?no(ledge, actual or constructive,
of the termination of such relationship.
For these reasons the judgment appealed from is confirmed, (ithout special
finding as to costs.
Torres, Mapa, o!nson an" Carson, ., concur.