02-4 Classification of Agency Flashcards
What are the two forms of agency?
Express agency; implied agency
Art. 1869. Agency may be express, or implied from the acts of the principal, from his silence or lack of action, or his failure to repudiate the agency, knowing that another person is acting on his behalf without authority.
When is there agency by estoppel?
There is agency by estoppel when:
- So far as third persons are concerned, when the agents act is within the terms of the power of attorney, as written, even if the agent has in fact exceeded the limits of his authority according to an understanding between the principal and the agent. (Art. 1900);
- When the agents acts exceeded his authority but the principal still allowed the agent to act as though he had full powers. (Art. 1911);
- If the agency was entrusted for the purpose of contracting with specified persons, and said persons were notified of its revocation and the agent still acted as such subsequent to revocation (Art. 1921);
- When the agent had general powers and it was revoked without notifying third persons who acted in good faith and without knowledge of the revocation (Art. 1922).
When is there agency by operation of law?
There is agency by operation of law when:
- When although hypothetically the agent exceeded his authority but his act was performed in a manner more advantageous to the principal than that specified (Art. 1882);
- The agent must also finish the business already begun on the death of the principal, should delay entail any danger (Art. 1884 par 2);
- Even upon the death of the principal, the agency remains in full force if it is coupled with interest;
- When the agent performs acts without knowledge of the death of the principal and the agent contracts with a third person who acted in good faith (Art. 1931).
Art. 1876. An agency is either general or […].
The former comprises […]. The latter […].
Art. 1876. An agency is either general or special.
The former comprises all the business of the principal. The latter, one or more specific transactions.
When is there a durable agency?
When the agency is constituted in the common interest of the principal and agent or in the interest of a third person who has accepted the stipulation in his favor. It is durable because it subsists even after death of the principal.
Art. 1930. The agency shall remain in full force and effect even after the death of the principal, if it has been constituted in the common interest of the latter and of the agent, or in the interest of a third person who has accepted the stipulation in his favor. (n)
What is the coverage of an agency couched in general terms?
Only acts of administration.
Art. 1877. An agency couched in general terms comprises only acts of administration, even if the principal should state that he withholds no power or that the agent may execute such acts as he may consider appropriate, or even though the agency should authorize a general and unlimited management. (n)
In what cases is a special power of attorney required?
Art. 1878. S P O A A N I T F C:
(1) T M S P A A N U C A A O A;
(2) T E N W P A E T O A I E A T T T A W C;
(3) T C, T S Q T A, T R T R T A F A JM T W O T T V O A A O T A A P A A;
(4) T W A O G;
(5) T E I A C B W T O O A I I T O A E G O F A V C;
(6) T M G, E C O F C O T M T E I T B M B T A;
(7) T L O B M, U T L A B U A I F T P O T T W A U A;
(8) T L A R P T A P F M T O Y;
(9) T B T P T R S S W C;
(10) T B T P I A C O P;
(11) T O T P A A G O S;
(12) T C O C R R O I P;
(13) T A O R A I;
(14) T R O R O C B T A;
(15) A O A O S D
Does a special power to sell include the power to mortgage?
No.
Art. 1879. A special power to sell excludes the power to mortgage; and a special power to mortgage does not include the power to sell. (n)
Does a special power to mortgage include the power to sell?
No.
Art. 1879. A special power to sell excludes the power to mortgage; and a special power to mortgage does not include the power to sell. (n)
May an agent submit to arbitration if he posses a special power to compromise?
No.
Art. 1880. A special power to compromise does not authorize the submission to arbitration. (1713a)
Pineda v. CA on employer-employee agency relationship with respect to group insurance policies.
The employer is the agent of the insurer in performing the duties of administering group insurance policies.
What are the three kinds of agency as regards the power of the agent to act?
- Universal Agency - one is employed to do all acts that the principal may personally do, and which he can lawfully delegate to another the power of doing.
- General agency (NCC 1876) - Scope of agency comprises all the business of the principal. A general agent is “one authorized to do all acts pertaining to a business of a certain kind or at a particulr place, or all acts pertaining to a business of a particular class or series.”
- Special Agency (NCC 1876) - Scope of agency comprises one or more specific transactions. A special agent is “one authorized to do some particular act or to act upon some particular occasion. He acts usually in accordance with specific instructions or under limitations necessarily implied from the nature of the act to be done.”
Siasat v. IAC
An agent who is empowered to transact all the business of his principal of a particular kind or in a particular place, would, for this reason, be ordinarily deemed a general agent.
When general words are employed in the agreement and no restrictions were intended as to the manner the agency was to be carried out or in the place where it was to be executed, the agency granted is a general agency.
Dominion Insurance Corp. v CA.
Despite the word “special” in the title of the document, the contents reveal that what was constituted was actually a general agency. The agency comprises all the business of the principal, but, couched in general terms, it is limited only to acts of administration.
Dominion Insurance Corp. v CA.
Despite the word “special” in the title of the document, the contents reveal that what was constituted was actually a general agency. The agency comprises all the business of the principal, but, couched in general terms, it is limited only to acts of administration.
