The case involved a dispute over whether a contract between Green Valley Poultry and Squibb was an agency agreement or sales contract. Squibb sued Green Valley to collect payment for goods delivered but not paid for. Both lower courts ruled the agreement was a sales contract, making Green Valley liable to pay. The Supreme Court affirmed, finding Green Valley liable regardless of how the contract was classified.
The case involved a dispute over whether a contract between Green Valley Poultry and Squibb was an agency agreement or sales contract. Squibb sued Green Valley to collect payment for goods delivered but not paid for. Both lower courts ruled the agreement was a sales contract, making Green Valley liable to pay. The Supreme Court affirmed, finding Green Valley liable regardless of how the contract was classified.
The case involved a dispute over whether a contract between Green Valley Poultry and Squibb was an agency agreement or sales contract. Squibb sued Green Valley to collect payment for goods delivered but not paid for. Both lower courts ruled the agreement was a sales contract, making Green Valley liable to pay. The Supreme Court affirmed, finding Green Valley liable regardless of how the contract was classified.
The case involved a dispute over whether a contract between Green Valley Poultry and Squibb was an agency agreement or sales contract. Squibb sued Green Valley to collect payment for goods delivered but not paid for. Both lower courts ruled the agreement was a sales contract, making Green Valley liable to pay. The Supreme Court affirmed, finding Green Valley liable regardless of how the contract was classified.
41. Green Valley Poultry & Allied Products, Inc. vs.
Intermediate Appellate Court, 133
SCRA 697, No. L-49395 December 26, 1984 FACTS: For goods delivered to Green Valley but unpaid, Squibb filed suit to collect. The trial court as aforesaid gave judgment in favor of Squibb which was affirmed by the Court of Appeals. Green Valley claimed that the contract with Squibb was a mere agency to sell; that it never purchased goods from Squibb; that the goods received were on consignment only with the obligation to turn over the proceeds, less its commission, or to return the goods if not sold, and since it had sold the goods but had not been able to collect from the purchasers thereof, the action was premature. Squibb claimed that the contract was one of sale so that Green Valley was obligated to pay for the goods received upon the expiration of the 60-day credit period. Both courts ruled that the agreement between the parties was a sales contract. ISSUE: Whether the contract was an agency to sell. HELD: No. We do not have to categorize the contract. Whether viewed as an agency to sell or as a contract of sale, the liability of Green Valley is undeniable. Adopting Green Valley’s theory that the contract is an agency to sell, it is liable because it sold on credit without authority from its principal. Art. 1905 of the Civil Code provides that the commission agent cannot, without the express or implied consent of the principal, sell on credit. Should he do so, the principal may demand from him payment in cash, but the commission agent shall be entitled to any interest or benefit, which may result from such sale. WHEREFORE, the petition is hereby dismissed; the judgment of the defunct Court of Appeals is affirmed with costs against the petitioner
Bilflex Phil. Inc. Labor Union Et Al. V. Filflex Industrial and Manufacturing Corporation and Bilflex (Phils.), Inc. 511 SCRA 247 (2006), THIRD DIVISION (Carpio Morales, J.)