EUROTECH INDUSTRIAL TECHNOLOGIES, INC. v.

CUIZON
G.R. No. 167552, April 23, 2007
Facts
Respondent alleged that he is not a real party in interest in the present case because he acts as a mere agent of his principal, the Impact
Systems, when it made purchase of sludge pump and was unable to pay thereto the balance amount. That this fact was within the knowledge of
petitioner; that despite having assigned Impacts receivables in favor of petitioner, signed by respondent, Impact is still collecting from the
receivable, thus an amount is still outstanding to petitioner.
Issue
Is respondent personally liable when he signed the deed of assignment?
Held
No. The agent who acts as such is not personally liable to the party with whom he contracts, unless he expressly binds himself or exceeds the
limits of his authority without giving such party sufficient notice of his powers. In the absence of an agreement to the contrary, a managing
agent may enter into any contracts that he deems reasonably necessary or requisite for the protection of the interests of his principal entrusted to
his management. Respondent acted well-within his authority when he signed the Deed of Assignment.