Valera v. Velasco · G.R. 28050

Petitioner: Valera
Respondent: Velasco
Citation: G.R. No. 28050
Court: Supreme Court
Decided: March 13, 1928

Summary

This case involved the termination of an agency relationship between Federico Valera (principal) and Miguel Velasco (agent). Velasco was appointed to manage Valera's usufructuary rights over Manila property. When disagreements arose over account liquidation, Velasco sued Valera and obtained judgment, leading to execution sale of Valera's property rights to himself. Valera challenged this, claiming the agency continued. The Supreme Court held that an agent's lawsuit against his principal for collection of agency account balances constitutes express renunciation of the agency, terminating their juridical relationship. Since the agency was terminated, Velasco's acquisition of the property rights through execution sale was valid. The case established that hostile acts by an agent against his principal, particularly litigation for account settlements, demonstrate agency termination more clearly than express words.

Statutes applied

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Contract of Agency in the Philippines

By the Intellegal Editorial Board · March 13, 1928

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