*Dock warrant – A warrant given by a dock owner to the owner of the goods imported and warehoused on the dock

upon
the faith of the bill of lading, as a recognition of the title to the goods of the owner of such goods.

*Bill of lading (receipt for transportation, forwarder’s receipt, shipping receipt) – This refers to the written
acknowledgement of the receipt of the goods by a carrier, and an agreement to transport and to deliver the goods at a
specified place to a person named therein, or to his order or to bearer.

*Warehouse receipt – This is a written acknowledgement by a warehouseman of the receipt of the goods which are
placed in his possession.

*Quedan – klase ng warehouse receipt kung sugar ang inistore sa warehouse.

Sec. 8 of Act No. 2137: The Warehouse Receipts Law – (Obligation of warehousemen to deliver) – A warehouseman, in
the absence of some lawful excuse provided by this Act, is bound to deliver the goods upon a demand made either by the
holder of a receipt for the goods or by the depositor; if such demand is accompanied with:

a. An offer to satisfy the warehouseman’s lien;

b. An offer to surrender the receipt, if negotiable, with such indorsements as would be necessary for the negotiation
of the receipt; and

c. A readiness and willingness to sign, when the goods are delivered, an acknowledgment that they have been
delivered, if such signature is requested by the warehouseman.

In case the warehouseman refuses or fails to deliver the goods in compliance with a demand by the holder or depositor so
accompanied the burden shall be upon the warehouseman to establish the existence of a lawful excuse for such refusal.

Sec. 8 – Warehouse Receipt Act – Atty. Cruz

1. Deliver the receipt of which he is the holder

2. Pay the fees or liens of the warehouseman

3. Sign the receipt for the delivery of the goods

*Kung kaya mong gawin tong tatlo, sa’yo dapat ibigay yung goods. Ikaw ang may mas karapatan.

Claimants:

1. Judgment creditor vs. Holder

Judgment creditor – nag-pautang ka sa isang tao at di sya nagbayad tapos nagdemanda ka sa court, nanalo ka
judgment creditor ang tawag sa’yo.

Ex. Si X pinautang niya si B ng goods, dineliver on credit. Yung goods na natanggap ni B kay X, dineposit niya kay A
(warehouseman) kung saan si A ay nag-issue kay B ng warehouse receipt. Si B ninegotiate kay C yung goods at
tinanggap ni C yung warehouse receipt, binayaran niya yon kay B in good faith so ang may hawak ng warehouse
receipt ay si C. Meanwhile, si X dinemanda si B dahil may utang pa sa kanya si B. Nanalo si X, so ang tawag kay X
ay judgment creditor. Kasama ni X yung sheriff, pinuntahan nila si A. Nung nagpunta sila kay A, nagpunta rin si C.

Kung ikaw si A kanino mo ibibigay yung goods, kay X ba o kay C? Ang sagot ay kay C, dahil ang pwedeng
magcomply nung nasa Sec. 8 ng Warehouse receipt act ay si C na kung saan siya ang holder.

2. Unpaid Seller vs. Holder

Unpaid Seller:

1. You haven’t received any payment yet.

2. You received partial payment but not the full payment.

3. You received a negotiable instrument, but this negotiable instrument when presented for payment was
dishonored. (binayaran ka ng check at tumalbog yung check)
 Case 1: Kumuha ng goods si B kay X, dineliver ni X kay B yung goods on credit. Dineposit naman ni B yung goods
kay A (warehouseman) at nagbigay ng warehouse receipt si A kay B. Nabalitaan ni X na insolvent si B (unpaid seller),
hinabol ni X kay A yung goods. Mahahabol ba ng unpaid seller yung goods kay A na warehouseman? Ang sagot ay oo
dahil right ng unpaid seller na marepossess yung property. Pwede mapanalo ni X kung hindi pa naipapasa ni B yung
receipt sa ibang tao.

Case 2: Kung sakali si B ninegotiate na kay C yung receipt, who paid value therefore in good faith. Between C and X,
kay C na dapat ibigay ni A ang goods dahil siya ang pwedeng magcomply ng Sec. 8.

3. Lessor/Landlord vs. Holder

Ex. Si X ang owner, tenant niya si B. Ang usapan bibigyan siya ng 100 kaban ng bigas pag harvest time. Nung
harvest time, sinegregate na ni B yung 100 kaban para kay X pero wala si X kaya napilitan si B na ideposit yung
100 kaban sa warehouse ni A. Binigyan naman ni A si B ng warehouse receipt. Imbes na ibigay ni B yung
warehouse receipt kay X, ninegotiate niya kay C yung goods at nagbayad naman si C in good faith. Nalaman ni X
na idineposit ni B kay A kaya pinuntahan niya si A, na tiyempo nandun din si C.

Kanino dapat ibigay ni A yung goods, kay X ba o kay C? Ang sagot ay kay C dahil siya ang pwedeng magcomply
sa Sec. 8 ng Warehouse Receipt Act.

4. Landlord/Overseer vs. Holder

Ex. Si X ang owner at si B naman ang overseer or tagapamahala at may mga tenants. Lahat ng mga bayad na
ani para kay X kinuha ni B, at idineposit niya sa warehouse ni A. Binigyan siya ni A ng warehouse receipt pero
imbes na iturnover ni B kay X, ninegotiate niya kay C yung goods at nagbayad naman si C in good faith. Between
B (overseer) and C, may mas karapatan si C dahil siya ang pwedeng mag comply sa Sec. 8.

5. Alleged Owner vs. Holder

Ex. Si B nagdeposit ng goods kay A (warehouseman). Si A nagbigay ng receipt kay B. Si B ninegotiate kay C at
binayaran naman ni C in good faith, so si C na ang may hawak ng receipt. Pero nung pumunta si C kay A, ay
nandun si X at sinasabi niya na ninakaw lang ni B yung goods sa kanya.

Kung ikaw si A (warehouseman) kanino mo ibibigay ang goods, kay X (alleged owner) or kay C (holder)? Kapag
may dalawang claimants, at tingin mo parehas silang may interest over the goods, para di ka maging liable mas
maganda kung ipasok mo yan sa court by means of consignation at court na ang bahala sa decision kung kanino
dapat mapupunta ang goods.

*Principal - gumagawa ng special power of attorney

*Attorney-in-fact (agent) – yung inappoint ng principal sa SPA.

Art. 1892. The agent may appoint a substitute if the principal has not prohibited him from doing so; but he shall be
responsible for the acts of the substitute:

1. When he was not given the power to appoint one;

*Pag walang binanggit na bawal mag-appoint si agent at wala ring binanggit na pwede siya mag appoint ng substitute
-pwede siya mag-appoint, pero sagot niya lahat ng gagawin ng substitute.

2. When he was given such power, but without designating the person, and the person appointed was notoriously
incompetent or insolvent.

All acts of the substitute appointed against the prohibition of the principal shall be void. (1721)

*Kapag sinabi sa SPA na pwede tingnan mo kung sino ang nag-appoint:

*Pag principal ang nag-appoint- hindi sasagutin ng agent ang gagawin ng sub-agent/substitute kapag palpak
ang ginawa nung substitute kahit na notoriously incompetent or insolvent siya since wala namang choice si agent.

*Pag agent naman ang nag-appoint tingnan mo yung inappoint niya na sub-agent:

 Kung ang inappoint ni agent ay notoriously incompetent or insolvent – liable si agent

  Kung ang inappoint naman ni agent na substitute ay hindi notoriously incompetent or insolvent – the
substitute himself will be liable

*Kapag naman sinabing bawal mag-appoint si agent ng substitute at nag-appoint parin siya ng sub-agent – lahat ng
gagawin ng substitute ay void.

Art. 1893. In the cases mentioned in Nos. 1 and 2 of the preceding article, the principal may furthermore bring an action
against the substitute with respect to the obligations which the latter has contracted under the substitution.

*Commission of the Agent

Ex. Ang usapan na commission ng agent ay 10% ng P200,000, at nabenta niya ng P300,000 at sinabi niya sa principal na
P300,000 ang benta niya, ang makukuha ni agent na commission ay P10% pa rin ng P200,000 which is P20,000.

Art. 1890. If the agent has been empowered to borrow money, he may himself be the lender at the current rate of interest.
If he has been authorized to lend money at interest, he cannot borrow it without the consent of the principal.

*Binigyan ka ng authority na ipautang yung P20M, pwede bang agent yung umutang? – hindi pwede kung walang
consent.

*Kung principal yung uutang at merong pampautang si agent – pwede niya pautangin.

Art. 1891. Every agent is bound to render an account of his transactions and to deliver to the principal whatever he may
have received by virtue of the agency, even though it may not be owing to the principal. Every stipulation exempting the
agent from the obligation to render an account shall be void.

Art. 1885. In case a person declines an agency, he is bound to observe the diligence of a good father of a family in
the custody and preservation of the goods forwarded to him by the owner until the latter should appoint an agent or take
charge of the goods.

Art. 1881. The agent must act within the scope of his authority. He may do such acts as may be conducive to the
accomplishment of the purpose of the agency.

Art. 1882. The limits of the agent's authority shall not be considered exceeded should it have been performed in a manner
more advantageous to the principal than that specified by him.

*If ever nag-act ang agent in excess of his authority (Unenforceable contract) – Ex. Pinabebenta ang goods in cash,
ibinenta ng agent in installment, pwede i-ratify ng principal yung act ng agent. Maaring sabihin niya na pumapayag na siya
ibenta yung goods in installment

*Kapag principal dapat capable ka, kapag naman agent pwede kahit capable or incapable.

Art. 1874. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be
in writing; otherwise, the sale shall be void.

*Special power of attorney is necessary to lease any real property to another person for more than one year – kapag
inutusan ka magpaupa ng real property

Art. 1875. Agency is presumed to be for a compensation, unless there is proof to the contrary

Art. 1879. A special power to sell excludes the power to mortgage; and a special power to mortgage does not include the
power to sell.

Art. 1886. Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so
except when the principal is insolvent.

Difference between contract for lease of service and contract of agency:

*In agency, yung instructions ng principal ang gagawin ng agent, while sa lease of service bahala yung hinire kung pano
niya ieexecute yung service niya

*In agency, hindi kailangan na professional or knowledgeable ang agent, pero sa lease of service, kailangan professional
at alam niya ang ginagawa niyang service

*In agency, may compensation at pwede rin na wala, pero sa lease of service laging meron.
Obligations of the principal:

1. To comply with all the obligations which the agent may have contracted within the scope of his authority.

2. To be bound for any obligation wherein the agent has exceeded his power if he ratifies such obligation expressly
or tacitly.

3. To be solidary liable with the agent if he allowed the latter to act as though he had full powers when the agent
exceeded his authority.

4. To advance to the agent the sums necessary for the execution of the agency should the agent so request

5. To reimburse the agent the sums advanced by the latter even if the business or undertaking was not successful
provided the agent is free from all fault.

6. To indemnify the agent for all damages which the execution of the agency may have caused the latter, without
fault or negligence on his part.

Art. 1931. Anything done by the agent, without knowledge of the death of the principal or of any other cause which
extinguishes the agency, is valid and shall be fully effective with respect to third persons who may have contracted with
him in good faith.

*Hindi dapat alam ng agent at nung katransaction nya na patay na yung principal.

*According to Art. 1884, kailangan ituloy ni agent ang agency kahit alam niya na patay na yung principal.

Art. 1884. The agent is bound by his acceptance to carry out the agency, and is liable for the damages which, through his
non-performance, the principal may suffer. He must also finish the business already begun on the death of the
principal, should delay entail any danger.

Modes of Extinguishment of the Agency:

1. By revocation

2. By withdrawal of the agent

3. By the death, civil interdiction, insanity or insolvency of the principal or of the agent

*Civil interdiction – a person civilly interdicted is not only in prison. He cannot manage his property or dispose of it
by an act or conveyance inter vivos. In the case of the principal, his acts are restricted. In the case of the agent,
he will not be able to carry out the agency because he is deprived of his liberty.

*Insanity – the principal cannot give his consent if he is insane. An insane agent, on the other hand, cannot be
expected to carry out the agency.

*Insolvency – The insolvency of the principal modifies or limits his capacity to act. The insolvency of the agent, on
the other hand, results in his not being able to effectively carry out the agency because the trust originally reposed
upon him is affected.

4. By the dissolution of the firm or corporation which entrusted or accepted the agency

5. By the accomplishment of the object or purpose of the agency.

6. By the expiration of the period for which the agency was constituted.