G.R. No.

6906

September 27, 1911

FLORENTINO RALLOS, ET AL., plaintiff-appellee,

vs.
TEODORO R. YANGCO, defendant-appellant.
Facts:
Yangco is engaged in the business of shipping and commission department for buying and selling leaf tobacco and other native products. He sent a letter to
Rallos, et al inviting them to consign to him leaf tobacco and other native products. In his letter, he introduced Florentino Collantes as his agent and stated
that Collantes is authorized to perform in his behalf all acts necessary to carry out the business.
Rallos et. al accepted the invitation, proceeded to do a considerable business with the Yangco through the said Collantes, as agent. Rallos et al continuously
sent produce to be sold on commission to Collantes. Yangco refused to pay the value of the goods upon the demand of the plaintiffs. He claimed that
Collantes acted in his personal capacity and not as his agent.
It appears, however, that prior to the sending of said tobacco the defendant had severed his relations with Collantes and that the latter was no longer acting
as his agent. No notice of any kind was given by Yangco to Rallos et al about the termination of their principal-agent relationship. Hence, this action was
brought by Rallos et al to recover said sum.
Issue:
Whether or not Yangco was liable for the value of the goods despite termination of their principal-agent relationship
Ruling:
Yangco is liable. Having advertised the fact that Collantes was his agent and having given them a special invitation to deal with such agent, it was the duty of
the defendant on the termination of the relationship of principal and agent to give due 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 and without negligence sent to the agent without knowledge, actual or constructive, of
the termination of such relationship.

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