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25 Quiroga VS, Parsons Hardware Co.

The plaintiff Andres Quiroga filed a case against Parsons Hardware Co. alleging that Parsons violated the terms of their contract where Quiroga granted Parsons the exclusive right to sell Quiroga's beds in the Visayan Islands. Parsons claimed that the contract did not expressly state the obligations that Quiroga alleged were implied. The issue before the court was whether the contract made Parsons an agent or purchaser of Quiroga's beds. The court examined the essential clauses of the contract, finding that Quiroga was obligated to provide beds to Parsons at a stipulated price, and Parsons was obligated to pay for the beds. This established the contract as one of purchase and sale rather

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59 views1 page

25 Quiroga VS, Parsons Hardware Co.

The plaintiff Andres Quiroga filed a case against Parsons Hardware Co. alleging that Parsons violated the terms of their contract where Quiroga granted Parsons the exclusive right to sell Quiroga's beds in the Visayan Islands. Parsons claimed that the contract did not expressly state the obligations that Quiroga alleged were implied. The issue before the court was whether the contract made Parsons an agent or purchaser of Quiroga's beds. The court examined the essential clauses of the contract, finding that Quiroga was obligated to provide beds to Parsons at a stipulated price, and Parsons was obligated to pay for the beds. This established the contract as one of purchase and sale rather

Uploaded by

Jem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quiroga vs, Parsons Hardware Co.

No. 11491. August 23, 1918


AVANCENA, J.:
Facts:
Andres Quiroga, plaintiff and appellant, and Parsons Hardware Co., defendant and
appellee, executed a contract where Quiroga grants J. Parsons exclusive right to sell his beds in
the Visayan Islands. Quiroga shall furnish the beds of his manufacture to Parsons. However,
Parsons violated the conditions of the contract prompting Quiroga to file a case against him.
Parsons alleged that none of the obligations imputed are expressly set forth in the contract but
Quiroga alleged that the defendant was his agent for the sale of his beds in Iloilo, and that said
obligations are implied in a contract of commercial agency.
Issue:
Whether the defendant, by reason of the contract hereinbefore transcribed, was a
purchaser or an agent of the plaintiff for the sale of his beds?
Rule of law:

Application:
For the classification of contracts, due regard must be paid to their essential clauses. In
the contract in the instant case, what was essential, constituting its cause and subject matter, was
that the plaintiff was to furnish the defendant with the beds which the latter might order, at the
stipulated price, and that the defendant was to pay this price in the manner agreed upon. These
are precisely the essential features of a contract of purchase and sale. There was the obligation on
the part of the plaintiff to supply the beds, and, on that of the defendant, to pay their price. These
features exclude the legal conception of an agency or order to sell whereby the mandatary or
agent receives the thing to sell it, and does not pay its price, but delivers to the principal the price
he obtains from the sale of the thing to a third person, and if he does not succeed in selling it, he
returns it. Held: That this contract is one of purchase and sale, and not of commercial agency.
Conclusion:
The judgment appealed from is affirmed.

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