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ISSUE:
Whether or not respondents are liable as agents of the company and are obliged to refund
the money that they received. (YES)
RULING:
The defendants received a certain capital from the plaintiff for organizing a company and
were to handle the said money and invest it in a store (object). They failed to fulfill the obligation
of a partner who acted as an agent (agent because there was no special agreement vesting in one
sole person the management of the business) in receiving money for a given purpose, for which he
has rendered no accounting, such agent is responsible for the losses which he incurred.
Art. 1688 is applicable (no other money than that contributed as is involved). Article 1138
of the Civil Code has been invoked (debts of a partnership where the obligation is not a joint one),
as is likewise provided by article 1723 (liability of two or more agents with respect to the return
of the money that they received from their principal).
Judgment appealed from is affirmed, provided that the defendant Ong Pong Co shall only
pay the plaintiff the sum of P750 with the legal interest rate of 6%/per annum from the time of the
filing of the complaint (April 25, 1907) and the costs.
Note: The court finds no evidence that the entire capital or any part was lost. With regard
to the possible profits, the court does not find that the amount thereof has been proven, nor deem
it possible to estimate them to be a certain sum; hence, it can not admit the 12%/annum for the
period of six months.