MANUEL ORMACHEA TIN-CONGCO vs.

SANTIAGO TRILLANA
GR. No. 4776, March 18, 1909.
FACTS
Plaintiff Manuel Ormachea Tin-Congco and Luis Vizmanos OngQueco were engaged
in business in Hagonoy, Malolos. Defendant Santiago Trillana purchased from them
merchandise amounting toP4,000. The partnership was later on dissolved and the
business was divided up between the partners and all the accounts and debts
belonging to defendant were allotted to plaintiff. Plaintiff filed a complaint against
defendant praying that he be ordered to pay the amount plus interest which makes
the total debt toP5,500. The indebtedness was proven by documents signed by
defendant and his agents in favor of the partnership or their agent named Lawa.
Defendant contended that he had already settled his obligations by means of
periodical payments in tuba or the liquor of nipa palm. Defendant used as evidence
the document execute by Jose R. Lopez(Lawa), who used to be the manager of the
partnership, declaring that defendant has no outstanding debt with the distillery
which used to bounder his management. Lawa admitted that he executed the
document but because the latter was not indebted to him but to Manuel Ormachea,
to whom the credits standing against Trillana was transferred.
ISSUE
Does a manager of a business, after definite dissolution of partnership, has
authority to release debtors?
RULING
None. After the close of the business, the management of which was entrusted to a
certain person, and after expiration of two years from the date of his withdrawal, he
could not legally issue a document of warrant which would fatally exempt the
debtor from the payment of the debt existing in favor of the partner to whom the
credit claimed to have been extinguished may belong, because he has no authority
for such an act