Facts:

• F. W. Prising v. Springer involves a dispute over a draft drawn upon a partnership.
• F. W. Prising, the plaintiff, claimed that the draft was a personal loan.
• Milton E. Springer, the defendant and executor of the estate of John Kernan, argued that it was paid and included in the settlement of accounts between the partners.
• The draft was drawn on October 17, 1904, and the partnership operated under the firm name of F. W. Prising.
• Kernan, who had advanced all the capital for the partnership, became ill and had to go to Europe for treatment.
• Before his departure, Prising and Kernan made a statement of accounts, which showed a balance due to Kernan.
• Prising then executed a promissory note to cover the balance, and Kernan made a notation on the balance sheet acknowledging the note.
• Kernan also executed a general power of attorney in favor of Prising.
• Kernan passed away a few months later, and Prising paid various sums on behalf of Kernan and forwarded other sums while he was in Europe.
• The draft in question was found in Prising's possession when he presented his claim against Kernan's estate.

Issue:

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Ruling:

• The Supreme Court of the Philippines ruled in favor of Springer, the defendant.
• The court determined that the draft was drawn upon the partnership and paid out of partnership funds.
• The court rejected Prising's claim that it was a personal loan.
• The court found that the evidence, including the balance sheet, the promissory note, an...(Unlock)

Ratio:

• The court held that the name of the drawee on the draft, F. W. Prising, was the name of the partnership.
• It was a question of fact whether the draft was drawn upon and paid by the partnership or by Prising individually.
• The court applied the presumption of the extinction of obligations in a general settlement of accounts, unless there is proof of mistake, fraud, or express agreement to the contrary.
• The possession of the draft by Prising was not ...continue reading