Facts:
Behn, Meyer & Co. (Behn)was engaged in the business, among other things, of buying and selling copra, hemp, and other native products of the Islands, and in such business, it advanced money for the future delivery of copra, hemp, and took as security for the future delivery of such copra or hemp so contracted for a mortgage on the land upon which said copra or hemp was produced, and charging a discount on the future deliveries of said copra or hemp, which was compensation for the money so advanced. The Collector of Internal Revenue (CIR) demanded that Behnobtain a license as a real-estate broker and pay the sum of five hundred eighty pesos (P580) therefor, covering the years 1906 to 1912, inclusive, and the penalty for delinquency.
Issue:
Whether or not the transactions or business which Behn was engaged in, as disclosed by the agreement, constituted real-estate broker as defined by section 144 paragraph 2 of Act No. 1189
Ruling:
No. The contract which Behn made with their customers was for the purchase of agricultural products; that the payments were made in advance; that to secure the delivery of said products or a return of the money so paid in advance the plaintiff took a mortgage upon the land upon which the products were to be produced; that the taking of said mortgage was a mere incident to the business of the plaintiff in buying and selling agricultural products, and was not a business in itself. The business of the plaintiff was not a business "for themselves or for others, to negotiate the purchase or sale of lands, buildings, or interest therein, or to negotiate loans secured by lands, buildings, or interest therein, or to tent real estate for others, or to collect rents thereon," but the business was to purchase and sell agricultural products, and that the tasking of said mortgages was a mere incident of their principal business. It could hardly be held that a man who is engaged in the hardware and plumbing business, for example, who took a mortgage upon a residence in which he had placed extensive plumbing and sanitary apparatus, in order to secure the price of his labor and material, was engaged "as a real-estate broker."
It may be said that a man's business, or the business of a corporation, is that which busies or occupies his time, attention, or labor, as his principal concern or occupation. (Territory vs. Harris, 19 Pac. Rep, 286.) Many persons make an occasional loan of money, secured by a mortgage, in the due course of their business. That fact, however, will not constitute such a person a real-estate broker.
Behn, Meyer & Co. (Behn)was engaged in the business, among other things, of buying and selling copra, hemp, and other native products of the Islands, and in such business, it advanced money for the future delivery of copra, hemp, and took as security for the future delivery of such copra or hemp so contracted for a mortgage on the land upon which said copra or hemp was produced, and charging a discount on the future deliveries of said copra or hemp, which was compensation for the money so advanced. The Collector of Internal Revenue (CIR) demanded that Behnobtain a license as a real-estate broker and pay the sum of five hundred eighty pesos (P580) therefor, covering the years 1906 to 1912, inclusive, and the penalty for delinquency.
Issue:
Whether or not the transactions or business which Behn was engaged in, as disclosed by the agreement, constituted real-estate broker as defined by section 144 paragraph 2 of Act No. 1189
Ruling:
No. The contract which Behn made with their customers was for the purchase of agricultural products; that the payments were made in advance; that to secure the delivery of said products or a return of the money so paid in advance the plaintiff took a mortgage upon the land upon which the products were to be produced; that the taking of said mortgage was a mere incident to the business of the plaintiff in buying and selling agricultural products, and was not a business in itself. The business of the plaintiff was not a business "for themselves or for others, to negotiate the purchase or sale of lands, buildings, or interest therein, or to negotiate loans secured by lands, buildings, or interest therein, or to tent real estate for others, or to collect rents thereon," but the business was to purchase and sell agricultural products, and that the tasking of said mortgages was a mere incident of their principal business. It could hardly be held that a man who is engaged in the hardware and plumbing business, for example, who took a mortgage upon a residence in which he had placed extensive plumbing and sanitary apparatus, in order to secure the price of his labor and material, was engaged "as a real-estate broker."
It may be said that a man's business, or the business of a corporation, is that which busies or occupies his time, attention, or labor, as his principal concern or occupation. (Territory vs. Harris, 19 Pac. Rep, 286.) Many persons make an occasional loan of money, secured by a mortgage, in the due course of their business. That fact, however, will not constitute such a person a real-estate broker.
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