14. Harry E. Keeler Electric Co. vs. Rodriguez. November 11,1922.
Facts !lai"ti# is Harry E. Keeler Electric Co., a domestic cor$oratio" based i" %a"ila e"gaged i" t&e electrical busi"ess, a"d amo"g ot&er t&i"gs i" t&e sale o' (&at is )"o(" as t&e *%att&e(s* electric $la"t. +e'e"da"t is +omi"go Rodriguez a reside"t o' alisay, -ccide"tal Negros %o"teliba"o, a reside"t o' loilo, (e"t to Keeler Electric a"d made arra" arra"gem geme"t e"t (it& (it& t&e latter latter (&er (&erei" ei" &e claim claimed ed t&at t&at &e could could /"d $urc&aser 'or t&e *%att&e(s* $la"t. Keeler Electric told %o"teliba"o t&at 'or a"y $la"t t&at &e could sell or a"y customer t&at &e could /"d &e (ould be $aid a commissio" o' 10 'or &is services, i' t&e sale (as co"summated. &roug& %o"teliba"os e#orts, Keeler (as able to sell to Rodriguez Rodriguez o"e o' t&e *%att&e(s* $la"ts. Rodriguez $aid %o"teliba"o 3t&e $urc&ase $rice o' !2,15.6, a'ter t&e i"stallatio" o' t&e $la"t a"d (it&out t&e )"o(ledge o' Keeler Electric. Keeler Electric /led a" actio" agai"st Rodriguez 'or t&e $ayme"t o' t&e $urc&ase $rice. Rodriguez Rodriguez claimed t&at &e already $aid t&e $rice o' t&e $la"t. " additio", &e alleged t&at %o"teliba"o sold a"d delivered t&e $la"t to &im, a"d *(as t&e o"e (&o ordered t&e i"stallatio" o' t&at electrical $la"t. &ere (ere evide"ces a stateme"t a"d recei$t (&ic& %o"teliba"o sig"ed to (&om &e $aid t&e mo"ey. He $aid %o"teliba"o because t&e latter (as t&e o"e (&o sold, delivered, a"d i"stalled t&e electrical $la"t, a"d &e $rese"ted to &im t&e accou"t, a"d assured &im t&at &e (as duly aut&orized to collect t&e value o' t&e electrical $la"t. 7o(e 7o(err Cour Court t " 'avo 'avorr o' Rodri odrigu guez ez.. t &eld &eld t&at t&at Keele eelerr Elec Electr tric ic &ad &ad &eld &eld out out %o"teliba"o to Rodriguez Rodriguez as a" age"t aut&orized to collect. !ayme"t to %o"teliba"o (ould (ould dis disc&a c&arg rge e t&e debt debt o' Rodrigu odriguez. ez. &e bill bill (as (as give" give" to %o"tel %o"teliba iba"o "o 'or collectio" $ur$oses Keeler Electric Electric a$$ealed. t alleged t&at %o"teliba"o &ad "o aut&ority to receive t&e mo"ey. His services (ere co"/"ed to t&e /"di"g o' $urc&asers 'or t&e *%att&e(s* $la"t. %o"teliba"o (as "ot a" electricia", could "ot i"stall t&e $la"t a"d did "ot )"o( a"yt&i"g about its mec&a"ism.
Issues:
1. 8-N Keeler Electric aut&orized %o"teliba"o %o"teliba"o to receive or recei$t 'or mo"ey i" its be&al' 2. 8-N Rodriguez &ad a rig&t to assume by a"y act or deed o' Keeler Electric t&at %o"teliba"o (as aut&orized to receive t&e mo"ey Held/Ratio
1. N-, %o"teliba"o (as "ot aut&orized. &e $la"t (as sold by Keeler Electric to Rodriguez a"d (as co"sig"ed to loilo (&ere it (as i"stalled by Ce"ar, acti"g 'or, a"d re$rese"ti"g, Keeler Electric, (&ose e$e"se 'or t&e tri$ is i"cluded i", a"d made a $art o', t&e bill (&ic& (as recei$ted by %o"teliba"o. a. %o"teliba"o (as "ot a" age"t o' Keeler Electric. &ere is "ot&i"g o" t&e 'ace o' t&is recei$t to s&o( t&at %o"teliba"o (as t&e age"t o', or t&at &e (as acti"g 'or, Keeler Electric. t is &is o(" $erso"al recei$t a"d &is o(" $erso"al sig"ature. -utside o' t&e 'act t&at %o"teliba"o received t&e mo"ey a"d sig"ed t&is recei$t, t&ere is "o evide"ce t&at &e &ad a"y aut&ority, real or a$$are"t, to receive or recei$t 'or t&e mo"ey. Neit&er is t&ere a"y evide"ce t&at Keeler Electric ever delivered t&e stateme"t to %o"teliba"o. 3t is very a$$are"t t&at t&e stateme"t is t&e o"e (&ic& (as delivered by Keeler Electric to Ce"ar, a"d is t&e o"e (&ic& Ce"ar delivered to Rodriguez6 b. t (as :ua" Ce"ar, a"d "ot %o"teliba"o (&o sold t&e $la"t to Rodiguez. &e evide"ce is i" direct co";ict (it& Rodriguezs o(" $leadi"gs a"d t&e recei$t stateme"t (&ic& &e o#ered i" evide"ce. &is stateme"t also s&o(s u$o" its 'ace t&at !<1.=0 o' t&e bill is rou"d tri$ 'are a"d mac&i"es tra"s$ortatio" costs. &is claim must be 'or t&e e$e"ses o' Ce"ar i" goi"g to loilo 'rom %a"ila a"d retur", to i"stall t&e $la"t, a"d is stro"g evide"ce t&at it (as Ce"ar a"d "ot %o"teliba"o (&o i"stalled t&e $la"t. ' %o"teliba"o i"stalled t&e $la"t, t&ere (ould "ot &ave bee" a"y "ecessity 'or Ce"ar to ma)e t&is tri$ at t&e e$e"se o' Rodriguez. >'ter Ce"ar?s retur" to %a"ila, Keeler Electric (rote a letter to Rodriguez re@uesti"g t&e $ayme"t o' its accou"t, to (&ic& Rodriguez a"s(ered t&at &e already $aid to %o"teliba"o. &is is i" direct co";ict (it& t&e recei$ted stateme"t, (&ic& Rodriguez o#ered i" evide"ce, sig"ed by %o"teliba"o. t (ill be "oted t&at t&e recei$t (&ic& %o"teliba"o sig"ed is "ot dated, a"d it does "ot s&o( (&e" t&e mo"ey (as $aid. RELATED ISSUE
2. N-. a. Releva"t la(s Article 1162 CC: Payment must be made to the persons in whose favor the obligation is constituted, or to another authorized to receive it in his name
Article 1!2! CC: "he principal shall be liable as to matters with respect to which the agent has e#ceeded his authority only when he rati$es the same e#pressly or by implication %rmachea "in&Conco vs "rillana: "he repayment of a debt must be made to the person in whose favor the obligation is constituted, or to another e#pressly authorized to receive the payment in his name b. -" (&et&er a" assumed aut&ority eist A Certai" $ri"ci$les must be co"sidered 316 t&at t&e la( i"dulges i" "o bare $resum$tio"s t&at a" age"cy eists it must be $roved or $resumed 'rom 'actsB 326 t&at t&e age"t ca""ot establis& &is o(" aut&ority, eit&er by &is re$rese"tatio"s or by assumi"g to eercise itB 356 t&at a" aut&ority ca""ot be establis&ed by mere rumor or ge"eral re$utatio"B 346t&at eve"
a ge"eral aut&ority is "ot a" u"limited o"eB a"d 36 t&at every aut&ority must /"d its ultimate source i" some act or omissio" o' t&e $ri"ci$al. >$$lyi"g t&e above rules !erso"s deali"g (it& a" assumed age"t, (&et&er t&e assumed age"cy be a ge"eral or s$ecial o"e, are bou"d at t&eir $eril, i' t&ey (ould &old t&e $ri"ci$al, to ascertai" "ot o"ly t&e 'act o' t&e age"cy but t&e "ature a"d ete"t o' t&e aut&ority, a"d i" case eit&er is co"troverted, t&e burde" o' $roo' is u$o" t&em to establis& it. &e $erso" deali"g (it& t&e age"t must act (it& ordi"ary $rude"ce a"d reaso"able dilige"ce. -bviously, i' &e )"o(s or &as good reaso" to believe t&at t&e age"t is eceedi"g &is aut&ority, &e ca""ot claim $rotectio". o i' t&e suggestio"s o' $robable limitatio"s be o' suc& a clear a"d reaso"able @uality, or i' t&e c&aracter assumed by t&e age"t is o' suc& a sus$icious or u"reaso"able "ature, or i' t&e aut&ority (&ic& &e see)s to eercise is o' suc& a" u"usual or im$robable c&aracter, t&e $arty deali"g (it& &im may "ot s&ut &is eyes to t&e real state o' t&e case, but s&ould eit&er re'use to deal (it& t&e age"t at all, or s&ould ascertai" 'rom t&e $ri"ci$al t&e true co"ditio" o' a#airs. :udgme"t o' t&e lo(er court is reversed. Rodriguez s&ould $ay Keeler Electric t&e $urc&ase $rice o' t&e $la"t.
