Tuesday, September 20, 2016

Ramirez vs Orientalist Co. and Fernandez 38 Phil 634. No. 11897. September 24, 1918

Doctrine: Parol evidence to show character in which party is bound.

Facts:
                The Orientalist Company is a corporation, duly organized under the laws of the Philippine Islands, was engaged in the business of maintaining and conducting a theatre in the city of Manila for the exhibition of cinematographic films.  The plaintiff J. F. Ramirez was, at the same time, a resident of the city of Paris, France, and was engaged in the business of marketing films for a manufacturer or manufacturers, there engaged in the production or distribution of cinematographic material. In this enterprise the plaintiff was represented in the city of Manila by his son, Jose Ramirez.
                The written contract which was the subject of this action contained corporate name signed at the lower right hand corner of the contract, in the manner usual with a party signing in the character of principal obligor. The name of another individual was signed somewhat below and to the left of the corporate signature, after the customary manner of those who sign in a subsidiary capacity, but no words were written to indicate clearly whether this individual signed as a principal obligor or surety.

Issue:
                Where a name is signed ambiguously, whether or not parol evidence is admissible to show the character in which the signature was affixed.

Ruling:
                Yes.
                Rule of law which declares that oral evidence is admissible to show the character in which the signature was affixed. This conclusion is perhaps supported by the language of the second paragraph of article 1281 of the Civil Code, which declares that if the words of a contract should appear contrary to the evident intention of the parties, the intention shall prevail. But the conclusion reached is deducible from the general principle that in case of ambiguity parol evidence is admissible to show the intention of the contracting parties.

                Therefore, parol evidence was admissible to show that the intention of the parties was that he should be bound as surety and not jointly with other party.

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