Nepomuceno vs Heredia 2/27/1907 Carson FACTS: Heredia is in possession for administration: o P500 from Nepomuceno o P1500 from Canon

n Heredia, Nepomuceno and Canon entered into agreement that the above money is to be invested in mortgage or purchase of real estate giving them a return of 1% per month A certain Leano, a debtor for P500 of Nepomuceno offered Nepomuceno to a deed of conditional sale (venda con pacto de retro) to a certain tract of land for P2,000, p500 of which will be used to pay off the debt, thus only P1500 will be needed to purchase the property. Knowing that theres a money in possession of Heredia, Nepomuceno proposed to Canon to invest their money to said real estate. With the Instruction of the two plaintiffs, the defendant draw up the necessary documents to effect the transaction. The plaintiffs also requested that the title be placed under the name of the defendant and that the defendant executed before a notary public a formal memorandum of the fact that the plaintiff had furnished the money with which the land had been purchased, said memorandum setting forth the amount furnished by each and their proportionate interest in the investment. After a year, a cloud was cast on the title to the land by the institution of proceedings for the recovery of possession by third parties which is still pending The plaintiffs thereupon brought this action in which they are seeking to recover from the defendant the whole of the amount of money invested, with interest from the date of the investment, alleging with that purchase of the land was not made in accordance with their instructions, or on their account.

ISSUE: Whether or not the defendant was an agent of the plaintiffs? HELD: Yes. It was clearly established at the trial that the defendant was acting merely as the agent for the plaintiffs throughout the entire transaction; that the purchase of the land was made not only with their full knowledge and consent, but at their suggestion; and that after the purchase had been effected, the plaintiffs, with full knowledge of the facts, approved and ratified the actions of their agent in the premises.