Domingo et al vs Domingo et al

Gr L-30573
FACTS:
Vicente Domingo granted to Gregorio Domingo a real estate broker the
exclusive agency to sell his lot, Piedad Estate.
According to the document said lot must be sold for P2 and entitled to
5% commission on the total price if the property is sold.
Subsequently, Gregorio authorized Teofilo Purisima to look for a buyer
without notifying Vicente. The same promised to Teofilo to give of the 5%
commission.
Teofilo introduced Oscar de Leon as prospective buyer. Oscar made a
written offer to lower the price of P2 per sq meter. After several conferences,
they agreed that the price will be P1.20, and Vicente demand Oscar and in
return the latter issued 1000 check as earnest money then Vicente give
advanced payment of P300 to Gregorio.
Subsequently, Vicente asked for additional P1,000 as earnest money
which Oscar promised to deliver to Vicente.
Oscar de leon as gift or propina. Oscar gave him said amount after
Gregorio succeeded in persuading Vicente to accept his offer to buy the lot
for P1.20 instead of P2.
Moreover, Oscar did not pay Vicente the additional P1,000. The deed of
sale was not executed since Oscar gave up on the negotiation when he did
not receive his money from his brother in the US. Gregoria did not see Oscar
for several weeks thus sensing that something fishy might going on.
So he went to Vicentes house where he read and agreement that
Vicente is still willing to give his commission. He also went to Register of
Deeds and discovered that a Deed of Sale was executed in favor of Oscars
Wife so Gregoria demanded in writing the payment of commission. When
Gregoria asked Oscar on the sale, the latter told that Vicente went to Oscar
and told him to disregard Gregorio.
In reply Vicente stated that Gregorio is not entitled to the 5%
commission because he sold the property no to Gregorios buyer but to
another buyer, Amparo Diaz, Oscars wife.
ISSUE:
Whether or not Gregorios act of accepting the gift constitutes fraud
which would cause the forfeiture of his 5% commission.
RULING:

Gregorio as the broker received gift from the prospective buyer Oscar
without the knowledge and consent of his principal, Vicente. His
acceptance of said substantial monetary gift corrupted his duty to
serve the interests only of his principal and undermined his loyalty
to his principal. As a consequence instead of exerting his best to persuade
his prospective buyer to purchase the property on the most advantageous
terms desired by his principal to accept the counter-offer of the prospective
buyer the property at P1.20.
The duties and liabilities of a broker to his employer are
essentially those which an agent owes to his principal.
An agent who takes a secret profit in the nature of a bonus,
gratuity or personal benefit from the vendee, without revealing the
same to his principal, the vendor is guilty of a breach of his loyalty
to the principal and forfeits his right to collect the commission from
his principal, even if the principal does not suffer any injury by
reason of such breach of fidelity or that he obtained better results
or that the agency is a gratuitous one or that usage or custom
allows it.