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EN BANC G.R. No. 6906           September 27, 1911 2. No draft or written order will be accepted without If you care to favor me with your patronage, my office and without negligence sent to the agent without knowledge, actual
previous notice forwarding the consignment of goods to is at No. 163 Muelle de la Reinna, Binondo, Manila, P. or constructive, of the termination of such relationship.
guarantee the same. I., under the name of "Teodoro R. Yangco." In this
FLORENTINO RALLOS, ET AL., plaintiff-appellee, 
connection it gives me great pleasure to introduce to you
vs. TEODORO R. YANGCO, defendant-appellant. For these reasons the judgment appealed from is confirmed, without
Mr. Florentino Collantes, upon whom I have conferred
3. Expenses of freight, hauling and everything necessary special finding as to costs.
public power of attorney before the notary, Mr. Perfecto
for duly executing the commission will be charged in
1. PRINCIPAL AND AGENT; TERMINATION OF THE Salas Rodriguez, dated November 16, 1907, to perform
the commission.
AGENCY; DUTY OF PRINCIPAL TO GIVE DUE NOTICE.—The in my name and on my behalf all acts necessary for
defendant having advertised the fact that C was his agent, having carrying out my plans, in the belief that through his
given special notice to the plaintiffs of the agency, and having also knowledge and long experience in the business, along
4. All advances made under sections (1) and (3) shall
given them a special invitation to deal with such agent, it became the
bear interest at 10 per cent a year, counting by the sale with my commercial connections with the merchants of
defendant's duty, upon the termination of the relationship of principal
and agent, to give due and timely notice thereof to the plaintiffs. of the goods shipped or remittance of the amount this city and of the provinces, I may hope to secure the
thereof. most advantageous prices for my patrons. Mr. Collantes
will sign by power of attorney, so I beg that you make
2. ID; ID.; ID.; LIABILITY OF PRINCIPAL.—The general rule is due note of his signature hereto affixed.
that, when the relationship of principal and agent is established, and 5. A commission of 2 ½ per cent will be collected on the
the principal gives notice of the agency and holds out the agent as his amount realized from the sale of the goods shipped.
authorized representative, upon the termination of the agency it is the Very respectfully,
duty of the principal to give due and timely notice thereof, otherwise,
he will be held liable to third parties acting in good faith and properly 6. A Payment will be made immediately after collection
relying upon such agency. of the price of the goods shipped. (Sgd.) T. R. YANGCO.

MORELAND, J.: 7. Orders will be taken for the purchase of general (Sgd.) F. COLLANTES.
merchandise, ship-stores, cloths, etc., upon remittance
This is an appeal from a judgment of the Court of First Instance of of the amount with the commission of 2 per cent on the
Accepting this invitation, the plaintiffs proceeded to do a
the Province of Cebu, the Hon. Adolph Wislizenus presiding, in total value of the goods bought. Expenses of freight,
considerable business with the defendant through the said Collantes,
favor of the plaintiffs, in the sum of P1,537.08, with interest at 6 per hauling, and everything necessary for properly
as his factor, sending to him as agent for the defendant a good deal of
cent per annum from the month of July, 1909, with costs. executing the commission will be charged to the
produce to be sold on commission. Later, and in the month of
consignor.
February, 1909, the plaintiffs sent to the said Collantes, as agent for
The defendant in this case on the 27th day of November, 1907, sent the defendant, 218 bundles of tobacco in the leaf to be sold on
to the plaintiff Florentino Rallos, among others, the following letter: 8. The consignor of the good may not fix upon the commission, as had been other produce previously. The said
consignee a longer period than four months, counting Collantes received said tobacco and sold it for the sum of P1,744.
from the date of receipt, for selling the same; with the The charges for such sale were P206.96. leaving in the hands of said
CIRCULAR NO. 1. understanding that after such period the consignee is Collantes the sum of P1,537.08 belonging to the plaintiffs. This sum
authorized to make the sale, so as to prevent the advance was, apparently, converted to his own use by said agent.
MANILA,   November 27, 1907            and cost of storage from amounting to more than the
actual value of said goods, as has often happened.
It appears, however, that prior to the sending of said tobacco the
MR. FLORENTINO RALLOS, Cebu. defendant had severed his relations with Collantes and that the latter
9. The shipment to the consignors of the goods ordered was no longer acting as his factor. This fact was not known to the
on account of the amount realized from the sale of the plaintiffs; and it is conceded in the case that no notice of any kind
DEAR SIR: I have the honor to inform you that I have goods consigned and of the goods bought on remittance was given by the defendant to the plaintiffs of the termination of the
on this date opened in my steamship office at No. 163 of the value thereof, under sections (1) and (3), will not relations between the defendant and his agent. The defendant refused
Muelle de la Reina, Binondo, Manila, P. I., a shipping be insured against risk by sea and land except on written to pay the said sum upon demand of the plaintiffs, placing such
and commission department for buying and selling leaf order of the interested parties. refusal upon the ground that at the time the said tobacco was received
tobacco and other native products, under the following and sold by Collantes he was acting personally and not as agent of
conditions: the defendant. This action was brought to recover said sum.
10. On all consignments of goods not insured according
to the next preceding section, the consignors will bear
1. When the consignment has been received, the the risk. As is seen, the only question for our decision is whether or not the
consignor thereof will be credited with a sum not to plaintiffs, acting in good faith and without knowledge, having sent
exceed two-thirds of the value of the goods shipped, produce to sell on commission to the former agent of the defendant,
which may be made available by acceptance of a draft 11. All the foregoing conditions will take effect only
can recover of the defendant under the circumstances above set forth.
or written order of the consignor on five to ten day's after this office has acknowledged the consignor's
We are of the opinion that the defendant is liable. Having advertised
sight, or by his ordering at his option a bill of goods. In previous notice.
the fact that Collantes was his agent and having given them a special
the latter case he must pay a commission of 2 per cent. invitation to deal with such agent, it was the duty of the defendant on
12. All other conditions and details will be furnished at the termination of the relationship of principal and agent to give due
the office of the undersigned. and timely notice thereof to the plaintiffs. Failing to do so, he is
responsible to them for whatever goods may have been in good faith