Katrina Marie E.

Malang
AC101
BUSLAW Business Law
Republic o t!e "!ilippines
SU"REME C#UR$
Manila
E% BA%C
&.R. %o. L'()*+, -une .0/ 10(1
&#%1AL# "U2A$ 3 S#%S/ 4%C./ petitioner/
5s.
ARC# AMUSEME%$ C#M"A%2 6or7erl8 9nown as $eatro Arco:/ respon;ent.
<eria 3 Lao or petitioner.
-. W. <errier an; =aniel Me. &o7e> or respon;ent.
<acts?
1. 4n t!e 8ear 10.0/ t!e @$eatro Arco@/ wit! its oice in Manila/ was engage; in
t!e business o operating cine7atograp!s. 4n 10+0/ its na7e was c!ange; to
Arco A7use7ent Co7pan8. C. S. Sal7on was t!e presi;ent/ w!ile A. B.
Coulette was t!e business 7anager.
.. About t!e sa7e ti7e/ &on>alo "u8at 3 Sons/ 4nc./ anot!er corporation ;oing
business in t!e "!ilippine 4slan;s/ wit! oice in Manila/ in a;;ition to its ot!er
business/ was acting as eAclusi5e agents in t!e "!ilippines or t!e Starr "iano
Co7pan8 o Ric!7on;/ 4n;iana/ U.S. A.
+. 4t was agree; ater so7e negotiations t!at Arco A7use7ent Co7pan8 woul;
or;er soun; repro;ucing eBuip7ent ro7 t!e Starr "iano Co7pan8 an; t!at
t!e plainti woul; pa8 t!e ;een;ant/ in a;;ition to t!e price o t!e
eBuip7ent/ a 10 per cent co77ission/ plus all eApenses/ suc! as/ reig!t/
insurance/ ban9ing c!arges/ cables/ etc.
(. At t!e eApense o t!e plainti/ t!e ;een;ant sent a cable/ EA!ibit @+@/ to t!e
Starr "iano Co7pan8/ inBuiring about t!e eBuip7ent ;esire; an; 7a9ing t!e
sai; co7pan8 to Buote its price wit!out ;iscount. A repl8 was recei5e; b8
&on>alo "u8at 3 Sons/ 4nc./ wit! t!e price/ e5i;entl8 t!e list price o C1/)00
.o.b. actor8 Ric!7on;/ 4n;iana. $!e ;een;ant ;i; not s!ow t!e plainti t!e
cable o inBuir8 nor t!e repl8 but 7erel8 inor7e; t!e plainti o t!e price o
C1/)00.
*. So7eti7e t!e ollowing 8ear/ Arco A7use7ent Co7pan8 place; anot!er
or;er or soun; repro;ucing eBuip7ent to &on>alo "u8at 3 Sons/ 4nc. on t!e
sa7e ter7s as t!e irst or;er. $!is agree7ent or or;er was conir7e; b8 t!e
plainti b8 its letter EA!ibit @.@/ wit!out ;ate/ t!at is to sa8/ t!at t!e plainti
woul; pa8 or t!e eBuip7ent t!e a7ount o C1/D00/ w!ic! was suppose; to
be t!e price Buote; b8 t!e Starr "iano Co7pan8/ plus 10 per cent
co77ission/ plus all eApenses incurre;. $!e eBuip7ent un;er t!e secon;
or;er arri5e; in ;ue ti7e/ an; t!e ;een;ant was ;ul8 pai; t!e price o
C1/D00 wit! its 10 per cent co77ission/ an; C1D0/ or all eApenses an;
c!arges. $!is a7ount o C1D0 ;oes not represent actual out'o'poc9et
eApenses pai; b8 t!e ;een;ant/ but a 7ere lat c!arge an; roug! esti7ate
7a;e b8 t!e ;een;ant eBui5alent to 10 per cent o t!e price o C1/D00 o t!e
eBuip7ent.
D. About t!ree 8ears later/ t!e oicials o t!e Arco A7use7ent Co7pan8
;isco5ere; t!at t!e price Buote; to t!e7 b8 t!e ;een;ant wit! regar; to
t!eir two or;ers 7entione; was not t!e net price but rat!er t!e list price/ an;
t!at t!e ;een;ants !a; obtaine; a ;iscount ro7 t!e Starr "iano Co7pan8.
Moreo5er/ b8 rea;ing re5iews an; literature on prices o 7ac!iner8 an;
cine7atograp! eBuip7ent/ sai; oicials o t!e plainti were con5ince; t!at
t!e prices c!arge; t!e7 b8 t!e ;een;ant were 7uc! too !ig! inclu;ing t!e
c!arges or out'o'poc9et eApense. <or t!ese reasons/ t!e8 soug!t to obtain a
re;uction ro7 t!e ;een;ant or rat!er a rei7burse7ent/ an; ailing in t!is
t!e8 broug!t t!e present action.
). $!e trial court !el; t!at t!e contract between t!e petitioner an; t!e
respon;ent was one o outrig!t purc!ase an; sale/ an; absol5e; t!at
petitioner ro7 t!e co7plaint. $!e appellate court/ !owe5er/ E b8 a ;i5ision
o our/ wit! one Fustice ;issenting E !el; t!at t!e relation between
petitioner an; respon;ent was t!at o agent an; principal/ t!e petitioner
acting as agent o t!e respon;ent in t!e purc!ase o t!e eBuip7ent in
Buestion/ an; sentence; t!e petitioner to pa8 t!e respon;ent allege;
o5erpa87ents in t!e total su7 o C1/++*.*. or "./D)1.0(/ toget!er wit! legal
interest t!ereon ro7 t!e ;ate o t!e iling o t!e co7plaint until sai; a7ount
is ull8 pai;/ as well as to pa8 t!e costs o t!e suit in bot! instances. $!e
appellate court urt!er argue; t!at e5en i t!e contract between t!e
petitioner an; t!e respon;ent was one o purc!ase an; sale/ t!e petitioner
was guilt8 o rau; in concealing t!e true price an; !ence woul; still be liable
to rei7burse t!e respon;ent or t!e o5erpa87ents 7a;e b8 t!e latter.
4ssues?
1. $!e Court o Appeal erre; in law in !ol;ing t!at/ accor;ing to acts/ between
t!e appellant an; t!ere was an i7plicit appeal to presi;ent to principal in t!e
transaction in Buestion/ instea; o selling to t!e bu8er as state; b8 t!e Court
o <irst 4nstncia o Manila/ t!en c!aire; b8 Gonorable -u;ge Marcelino to;a8
Monte7a8or.
.. $!e Court o Appeal erre; in law in !ol;ing t!at/ i suc! a relations!ip ro7
seller to bu8er/ t!e appellant obtaine; b8 rau;/ t!e consent o t!e appeal as
to t!e price o C 1.)00 an; C 1.D00 o 7ac!iner8 an; eBuip7ent in Buestion /
an; con5ict t!e appellant !as obtaine; ro7 t!e Starr "iano Co7pan8 o
Ric!7on;/ 4n;iana.
=ecisions?
1. 4n t!e irst place/ t!e contract is t!e law between t!e parties an; s!oul;
inclu;e all t!e t!ings t!e8 are suppose; to !a5e been agree; upon. W!at
;oes not appear on t!e ace o t!e contract s!oul; be regar;e; 7erel8 as
@;ealerHs@ or @tra;erHs tal9@/ w!ic! can not bin; eit!er part8.
.. We agree wit! t!e trial Fu;ge t!at @w!ate5er unorseen e5ents 7ig!t !a5e
ta9en place una5orable to t!e ;een;ant 6petitioner:/ suc! as c!ange in
prices/ 7ista9e in t!eir Buotation/ loss o t!e goo;s not co5ere; b8 insurance
or ailure o t!e Starr "iano Co7pan8 to properl8 ill t!e or;ers as per
speciications/ t!e plainti 6respon;ent: 7ig!t still legall8 !ol; t!e ;een;ant
6petitioner: to t!e prices iAe; o C1/)00 an; C1/D00.@ $!is is inco7patible
wit! t!e preten;e; relation o agenc8 between t!e petitioner an; t!e
respon;ent/ because in agenc8/ t!e agent is eAe7pte; ro7 all liabilit8 in t!e
;isc!arge o !is co77ission pro5i;e; !e acts in accor;ance wit! t!e
instructions recei5e; ro7 !is principal 6section .*(/ Co;e o Co77erce:/ an;
t!e principal 7ust in;e7ni8 t!e agent or all ;a7ages w!ic! t!e latter 7a8
incur in carr8ing out t!e agenc8 wit!out ault or i7pru;ence on !is part
+. 4t ollows t!at t!e petitioner as 5en;or is not boun; to rei7burse t!e
respon;ent as 5en;ee or an8 ;ierence between t!e cost price an; t!e sales
price w!ic! represents t!e proit reali>e; b8 t!e 5en;or out o t!e
transaction. $!is is t!e 5er8 essence o co77erce wit!out w!ic! 7erc!ants
or 7i;;le7an woul; not eAist.
(. $!e writ o certiorari s!oul; be/ as it is !ereb8/ grante;. $!e ;ecision o t!e
appellate court is accor;ingl8 re5erse; an; t!e petitioner is absol5e; ro7
t!e respon;entHs co7plaint in &. R. %o. 10.+/ entitle; @Arco A7use7ent
Co7pan8 6or7erl8 9nown as $eatro Arco:/ plainti'appellant/ 5s. &on>alo
"u8at 3 Sons/ 4nc./ ;een;ants'appellee/@ wit!out pronounce7ent regar;ing
costs. So or;ere;.
Source? !ttp?IIwww.lawp!il.netIFu;FurisIFuri10(1IFun10(1IgrJl'
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