Category: Mercantile Law Jurisprudence
PHILIPPINE BANK OF COMMERCE V. ARUEGO
102 SCRA 530
FACTS: Aruego, on behalf of World Current Events, entered into a Credit Agreement with PBCom, for the publication of the company’s periodicals. At every printing endeavor by the printing press, a bill of exchange is drawn against PBCom. The instruments are signed by Aruego, without any indication that he is an agent of World Current Events. When he was being held liable by PBCom, he averred that he only signed the instrument in the capacity of agent of the company.
HELD: An inspection of the drafts accepted by the defendant would show nowhere that he has disclosed that he was signing in representation of the Philippine Education Foundation Company. He merely signed his name. For failure to disclose his principal, Aruego was personally liable for the drafts he accepted.