Jesus M. Gozun v. Jose Teofilo T. Mercado A.K.A. 'Don Pepito Mercado

Summary

Petitioner printer sued respondent politician for unpaid balance of P1,177,906 for campaign materials printed during 1995 gubernatorial election in Pampanga. The case involved issues of contract formation, agency authority, and real party in interest. The trial court ruled in favor of petitioner, but the Court of Appeals dismissed the case, finding insufficient evidence that respondent's sister-in-law was authorized to obtain cash advance and that petitioner lacked standing to collect for subcontracted printing presses. The Supreme Court reversed, emphasizing that petitioner was the real party in interest since he directly contracted with respondent and merely subcontracted other establishments for timely delivery. The Court applied Civil Code provisions on contracts and agency, particularly the rule that an agent must clearly act in the principal's name to bind the principal. Final judgment ordered respondent to pay P924,906, representing total printing costs less the partial payment already made.