Eurotech Industrial Technologies, Technologies, Inc. v. Edwin Cuizon and Erwin Cuizon G.R. No. 167552 April 23, 2007 Chico-Nazario, J. FACTS: Eurotech is e!a!e" i the #usiess o$ i%porta&o a" "istri#u&o o$ 'arious Europea i"ustrial e(uip%et. )t has as oe o$ its custo%ers )%pact *+ste%s *ales hich is a sole proprietorship oe" #+ Eri Cuizo. Eurotech sol" to )%pact *+ste%s 'arious pro"ucts alle!e"l+ a%ou&! to 1,33/.00. Cuizos sou!ht sou!ht to #u+ $ro% Eurotech Eurotech 1 uit o$ slu"!e slu"!e pu%p 'alue" 'alue" at 250,000. 250,000.00 00 ith Cuizos Cuizos %ai! %ai! a "o "o pa+%e pa+%ett o$ 50,000.00 50,000.00.. he the slu"!e slu"!e pu%p pu%p arri'e" arri'e" $ro% the ite" ite" i!"o%, Eurotech re$use" to "eli'er the sa%e to Cuizos ithout their ha'i! $ull+ se4le" their i"e#te"ess to Eurotech. hus, E"i Cuizo a" Al#erto "e Jesus, !eeral %aa!er %aa!er o$ Eurotech, eecute" a ee" o$ Assi!%et o$ recei'a#les i $a'or o$ Eurotech. Cuizos, "espite the eistece o$ the ee" o$ Assi!%et, procee"e" to collect $ro% ole"o oer Co%pa+ the a%out o$ 365,135.2. Eurotech %a"e se'eral "e%a"s upo Cuizos to pa+ their o#li!a&os. As a result, Cuizos ere a#le to %ae par&al pa+%ets to Eurotech. Cuizos8 total o#li!a&os stoo" at 25,000.00 eclu"i! iterests a" a4ore+8s $ees. E"i Cuizo alle!e" that he is ot a real part+ i iterest i this case. Accor"i! to hi%, he as ac&! as %ere a!et o$ his pricipal, hich as the )%pact *+ste%s, i his trasac&o ith Eurotech a" the la4er as 'er+ %uch aare o$ this $act. ISSUE: 9N E"i ecee"e" his authorit+ he he si!e" the ee" o$ Assi!%et there#+ #i"i! hi%sel$ persoall+ to pa+ the o#li!a&os to Eurotech HEL: No. E"i isists that he as a %ere a!et o$ )%pact *+ste%s hich is oe" #+ Eri a" that his status as such is o e'e to Eurotech as it is alle!e" i the Co%plait that he is #ei! sue" i his capacit+ as the sales %aa!er o$ the sai" #usiess 'eture. :ieise, E"i poits to the ee" o$ Assi!%et hich clearl+ states that he as ac&! as a represeta&'e o$ )%pact *+ste%s i sai" trasac&o. Art. 1/7. he a!et ho acts as such is ot persoall+ lia#le to the part+ ith ho% he cotracts, uless he epressl+ #i"s hi%sel$ or ecee"s the li%its o$ his authorit+ ithout !i'i! such part+ su;ciet o&ce o$ his poers. contract o! agenc", a perso #i"s hi%sel$ to re"er so%e ser'ice or to "o so%ethi! i ) a contract represeta&o or o #ehal$ o$ aother ith the la4er8s coset. )ts purpose is to ete" the persoalit+ o$ the pricipal or the part+ $or ho% aother acts a" $ro% ho% he or she "eri'es the authorit+ to act. he #asis o$ a!ec+ is represeta&o, that is, the a!et acts $or a" o #ehal$ o$ the pricipal o %a4ers ithi the scope o$ his authorit+ a" sai" acts ha'e the sa%e le!al e1? coset, epress or i%plie", o$ the par&es to esta#lish the rela&oship@ >2? the o#ect is the eecu&o o$ a uri"ical act i rela&o to a thir" perso@ >3? the a!et acts as a represeta&'e a" ot $or hi%sel$@ >B? the a!et acts ithi the scope o$ his authorit+
A a!et, ho acts as such, is ot persoall+ lia#le to the part+ ith ho% he cotracts. here are 2 istaces he a a!et #eco%es persoall+ lia#le to a thir" perso. he rst is he he epressl+ #i"s hi%sel$ to the o#li!a&o a" the seco" is he he ecee"s his authorit+. ) the last istace, the a!et ca #e hel" lia#le i$ he "oes ot !i'e the thir" part+ su;ciet o&ce o$ his poers. E"i "oes ot $all ithi a+ o$ the ecep&os cotaie" i Art. 1/7. ) the a#sece o$ a a!ree%et to the cotrar+, a %aa!i! a!et %a+ eter ito a+ cotracts that he "ee%s reasoa#l+ ecessar+ or re(uisite $or the protec&o o$ the iterests o$ his pricipal etruste" to his %aa!e%et. E"i Cuizo acte" ell-ithi his authorit+ he he si!e" the ee" o$ Assi!%et. Eurotech re$use" to "eli'er the 1 uit o$ slu"!e pu%p uless it recei'e", i $ull, the pa+%et $or )%pact *+ste%s8 i"e#te"ess. )%pact *+ste%s "esperatel+ ee"e" the slu"!e pu%p $or its #usiess sice aDer it pai" the a%out o$ 50,000.00 as "opa+%et it s&ll persiste" i e!o&a&! ith Eurotech hich cul%iate" i the eecu&o o$ the ee" o$ Assi!%et o$ its recei'a#les $ro% ole"o oer Co%pa+. he si!icat a%out o$ &%e spet o the e!o&a&o $or the sale o$ the slu"!e pu%p u"erscores )%pact *+ste%s8 perse'erace to !et hol" o$ the sai" e(uip%et. E"i8s par&cipa&o i the ee" o$ Assi!%et as reasoa#l+ ecessar+F or as re(uire" i or"er $or hi% to protect the #usiess o$ his pricipal.
