BM1905
TASK PERFORMANCE
Case Digest
A digest is a summary of the Supreme Court cases. It has three (3) parts: facts, issue, and ruling. The
facts part consists only of the essential facts relevant to the ruling in the case while the issue should be
relevant to the topic under which the case belongs. The ruling should answer the issue raised in the
case.
The cases can be found on [Link]
The case digest should be handwritten on a sheet of yellow pad paper.
Limited Partnerships
G.R. No. 167552 Eurotech Industrial Technologies, Inc., Petitioner, Vs. Edwin Cuizon and Erwin
Cuizon, Respondents, April 23, 2007
Facts:
Eurotech is engaged in the business of importation and distribution of various European industrial
equipment. It has as one of its customers Impact Systems Sales which is a sole proprietorship
owned by Erwin Cuizon.
Eurotech sold to Impact Systems various products allegedly amounting to P91,338.00. Cuizons
sought to buy from Eurotech 1 unit of sludge pump valued at P250,000.00 with Cuizons making a
down payment of P50,000.00. When the sludge pump arrived from the United Kingdom, Eurotech
refused to deliver the same to Cuizons without their having fully settled their indebtedness to
Eurotech. Thus, Edwin Cuizon and Alberto de Jesus, general manager of Eurotech, executed a
Deed of Assignment of receivables in favor of Eurotech.
Cuizons, despite the existence of the Deed of Assignment, proceeded to collect from Toledo Power
Company the amount of P365,135.29. Eurotech made several demands upon Cuizons to pay
their obligations. As a result, Cuizons were able to make partial payments to Eurotech. Cuizons’
total obligations stood at P295,000.00 excluding interests and attorney’s fees.
Edwin Cuizon alleged that he is not a real party in interest in this case. According to him, he was
acting as a mere agent of his principal, which was the Impact Systems, in his transaction with
Eurotech and the latter was very much aware of this fact.
Issue:
Whether Edwin exceeded his authority when he signed the Deed of Assignment thereby binding himself
personally liable to Eurotech
Ruling:
In accordance with Article 1897, an agent, who acts as such, is not personally liable to the party with whom
he contracts. There are only 2 reasons for an agent to become personally liable to a third person. The first
is when he expressly binds himself to the obligation and the second is when he exceeds his authority. In
the last instance, if the agent did not give the third-party sufficient notice of his powers, he can be held
liable.
In respect with this, Edwin is not personally liable to Eurotech, as he insisted that he was only a mere
agent of Impact Systems which is owned by Erwin, and that his status as such is known even to Eurotech
as it is alleged in the Complaint that he is being sued in his capacity as the sales manager of the said
business venture. In the same way, Edwin points to the Deed of Assignment which clearly states that he
was acting as a representative of Impact Systems in said transaction. Edwin does not fall within any of the
exceptions contained in Art. 1897.
In fact, Edwin Cuizon acted well within his authority when he signed the Deed of Assignment. To recall,
the petitioner refused to deliver the one unit of sludge pump because the payment for Impact System
indebtedness is not yet received in full. Though we conclude that Impact Systems desperately needed the
sludge pump for its business, it still persisted in negotiating with the petitioner which culminated in the
execution of the Deed of Assignment of its receivables. No doubt in our mind that respondent participation
in the Deed of Assignment was "reasonably necessary" or was required in order for him to protect the
business of his... principal. If he had not acted in the way he did, the business of his principal would have
been adversely affected and he would have violated his fiduciary relation with his principal. It is true that he
is not a real party in interest who should be impleaded in this case so the present petition is held denied
CRITERIA PERFORMANCE INDICATORS POINTS
Included significant facts and clear legal issues and jurisdictions,
Content 6
and provided clear conclusions and answers
Grammar Used correct grammar, punctuation, spelling, and capitalization 1
Expressed the points in clear and logical arrangement of ideas in
Organization of Ideas 2
the paragraph
Format Adhered to the required style or appearance 1
TOTAL 10
04 Task Performance 1 *Property of STI
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