1868 ONWARDS Flashcards

1
Q

Article 1868. By the contract of agency a person

A

binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.

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2
Q

Article 1869. Agency may be

A

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.

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3
Q

May the agency be oral?

A

Yes. Agency may be oral, unless the law requires a specific form.

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4
Q

Article 1870. Acceptance by the agent may

A

also be express, or implied from his acts which carry out the agency, or from his silence or inaction according to the circumstances

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5
Q

Between persons who are present, may the acceptance of the agency be implied if the principal delivers his power of attorney to the agent and the latter receives it without any objection?

A

yes. 1871

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6
Q

Article 1872. Between persons who are absent, may the acceptance of the agency be implied from the silence of the agent?

A

no, except

(1) When the principal transmits his power of attorney to the agent, who receives it without any objection;

(2) When the principal entrusts to him by letter or telegram a power of attorney with respect to the business in which he is habitually engaged as an agent, and he did not reply to the letter or telegram. (n)

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7
Q

Article 1873. If a person specially informs another or states by public advertisement that he has given a power of attorney to a third person, does the latter thereby become a duly authorized agent?

A

yes. in the former case with respect to the person who received the special information, and in the latter case with regard to any person.

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8
Q

Does the power continue to be in full force?

A

yes. until the notice is rescinded in the same manner in which it was given. (n)

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9
Q

Article 1874. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be

A

in writing; otherwise, the sale shall be void. (n)

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10
Q

Article 1875. Agency is presumed to be for a

A

compensation, unless there is proof to the contrary. (n)

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11
Q

Article 1876. An agency is either

The former comprises all the

The latter,

A

general or special.

business of the principal.

one or more specific transactions.

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12
Q

Article 1877. An agency couched in general terms comprises only

A

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.

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13
Q

Article 1878. Special powers of attorney are necessary in the following cases:

A

(1) To make such payments as are not usually considered as acts of administration;

(2) To effect novations which put an end to obligations already in existence at the time the agency was constituted;

(3) To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action or to abandon a prescription already acquired;

(4) To waive any obligation gratuitously;

(5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration;

(6) To make gifts, except customary ones for charity or those made to employees in the business managed by the agent;

(7) To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration;

(8) To lease any real property to another person for more than one year;

(9) To bind the principal to render some service without compensation;

(10) To bind the principal in a contract of partnership;

(11) To obligate the principal as a guarantor or surety;

(12) To create or convey real rights over immovable property;

(13) To accept or repudiate an inheritance;

(14) To ratify or recognize obligations contracted before the agency;

(15) Any other act of strict dominion. (n)

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14
Q

Article 1879. A special power to sell excludes the

and a special power to mortgage

A

power to mortgage;

does not include the power to sell. (n)

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15
Q

Article 1880. does a special power to compromise authorize submission to arbitration?

A

no

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16
Q

Article 1881. The agent must act within

He may do such acts as may be conducive to the (1714a)

A

the scope of his authority.

accomplishment of the purpose of the agency.

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17
Q

Article 1882. shall the limits of the agent’s authority be considered exceeded should it have been performed in a manner more advantageous to the principal than that specified by him. (1715)

In such case the agent is the one directly bound in favor of the person with whom he has contracted, as if the transaction were his own, except when the contract involves things belonging to the principal.

The provisions of this article shall be understood to be without prejudice to the actions between the principal and agent.

A

no

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18
Q

Article 1883. If an agent acts in his own name, does the principal have a right of action against the persons with whom the agent has contracted? can such persons have an action against the principal?

A

no and no

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18
Q

Article 1884. The agent is bound by his acceptance to carry out the agency, and is liable …

He must also finish the business already begun on the death of the principal, should delay entail any danger. (1718)

A

for the damages which, through his non-performance, the principal may suffer.

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19
Q

Article 1885. In case a person declines an agency, he is bound to observe the ________ of the goods forwarded to him by the owner until the latter should appoint an agent or take charge of the goods. (n)

A

diligence of a good father of a family in the custody and preservation

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20
Q

Article 1886. Should there be a stipulation that the agent shall advance the necessary funds, shall he be bound to do so

A

yes, except when the principal is insolvent. (n)

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21
Q

Article 1887. In the execution of the agency, shall the agent act in accordance with the instructions of the principal?

A

yes, In default thereof, he shall do all that a good father of a family would do, as required by the nature of the business. (1719)

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22
Q

Article 1888. shall an agent carry out an agency if its execution would manifestly result in loss or damage to the principal. (n)

A

no

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23
Q

Article 1889. shall the agent be liable for damages if, there being a conflict between his interests and those of the principal, he should prefer his own. (n)

A

yes

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24
Q

Article 1890. If the agent has been empowered to borrow money, may he himself be the lender at the current rate of interest?

If he has been authorized to lend money at interest, can he borrow it without the consent of the principal?

A

yes

no

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25
Q

Article 1891. is every agent bound to render an account of his transactions and to deliver to the principal whatever he may have received by virtue of the agency, even though it may not be owing to the principal?

Every stipulation exempting the agent from the obligation to render an account shall be(1720a)

A

yes

void

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26
Q

Article 1892. may the agent appoint a substitute if the principal has not prohibited him from doing so? ;

A

yes, but he shall be responsible for the acts of the substitute:

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27
Q

when shall the agent be responsible for the acts of the substitute?

A

(1) When he was not given the power to appoint one;

(2) When he was given such power, but without designating the person, and the person appointed was notoriously incompetent or insolvent.

All acts of the substitute appointed against the prohibition of the principal shall be void. (1721)

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28
Q

Article 1893. In the cases mentioned in Nos. 1 and 2 of the preceding article, may the principal bring an action against the substitute with respect to the obligations which the latter has contracted under the substitution. (1722a)

A

yes

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29
Q

Article 1894. is the responsibility of two or more agents, even though they have been appointed simultaneously solidary,

A

no, if solidarity has not been expressly stipulated. (1723)

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30
Q

Article 1895. If solidarity has been agreed upon, is each of the agents responsible for the non-fulfillment of agency, and for the fault or negligence of his fellows agents

A

yes, , except in the latter case when the fellow agents acted beyond the scope of their authority. (n)

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31
Q

Article 1896. does the agent owe interest on the sums he has applied to his own use (1724a)

A

yes, from the day on which he did so, and on those which he still owes after the extinguishment of the agency.

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32
Q

Article 1897. does the agent who act as such personally liable to the party with whom he contracts,

Article 1898. If the agent contracts in the name of the principal, exceeding the scope of his authority, and the principal does not ratify the contract, it shall be void if the party with whom the agent contracted is aware of the limits of the powers granted by the principal. In this case, however, the agent is liable if he undertook to secure the principal’s ratification. (n)

Article 1899. If a duly authorized agent acts in accordance with the orders of the principal, the latter cannot set up the ignorance of the agent as to circumstances whereof he himself was, or ought to have been, aware. (n)

Article 1900. So far as third persons are concerned, an act is deemed to have been performed within the scope of the agent’s authority, if such 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. (n)

Article 1901. A third person cannot set up the fact that the agent has exceeded his powers, if the principal has ratified, or has signified his willingness to ratify the agent’s acts. (n)

Article 1902. A third person with whom the agent wishes to contract on behalf of the principal may require the presentation of the power of attorney, or the instructions as regards the agency. Private or secret orders and instructions of the principal do not prejudice third persons who have relied upon the power of attorney or instructions shown them. (n)

Article 1903. The commission agent shall be responsible for the goods received by him in the terms and conditions and as described in the consignment, unless upon receiving them he should make a written statement of the damage and deterioration suffered by the same. (n)

Article 1904. The commission agent who handles goods of the same kind and mark, which belong to different owners, shall distinguish them by countermarks, and designate the merchandise respectively belonging to each principal. (n)

Article 1905. The commission agent cannot, without the express or implied consent of the principal, sell on credit. Should he do so, the principal may demand from him payment in cash, but the commission agent shall be entitled to any interest or benefit, which may result from such sale. (n)

Article 1906. Should the commission agent, with authority of the principal, sell on credit, he shall so inform the principal, with a statement of the names of the buyers. Should he fail to do so, the sale shall be deemed to have been made for cash insofar as the principal is concerned. (n)

Article 1907. Should the commission agent receive on a sale, in addition to the ordinary commission, another called a guarantee commission, he shall bear the risk of collection and shall pay the principal the proceeds of the sale on the same terms agreed upon with the purchaser. (n)

Article 1908. The commission agent who does not collect the credits of his principal at the time when they become due and demandable shall be liable for damages, unless he proves that he exercised due diligence for that purpose. (n)

Article 1909. The agent is responsible not only for fraud, but also for negligence, which shall be judged with more or less rigor by the courts, according to whether the agency was or was not for a compensation. (1726)

A

no, unless he expressly binds himself or exceeds the limits of his authority without giving such party sufficient notice of his powers. (1725)

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33
Q

Article 1898. If the agent contracts in the name of the principal, exceeding the scope of his authority, and the principal does not ratify the contract, it shall be

A

void if the party with whom the agent contracted is aware of the limits of the powers granted by the principal. In this case, however, the agent is liable if he undertook to secure the principal’s ratification. (n)

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34
Q

Article 1899. If a duly authorized agent acts in accordance with the orders of the principal, can the latter set up the ignorance of the agent as to circumstances whereof he himself was, or ought to have been, aware. (n)

A

no

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35
Q

Article 1900. So far as third persons are concerned, is an act deemed to have been performed within the scope of the agent’s authority, if such 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. (n)

A

yes

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36
Q

Article 1901. can a third person set up the fact that the agent has exceeded his powers, if the principal has ratified, or has signified his willingness to ratify the agent’s acts. (n)

Article 1902. A third person with whom the agent wishes to contract on behalf of the principal may require the presentation of the power of attorney, or the instructions as regards the agency. Private or secret orders and instructions of the principal do not prejudice third persons who have relied upon the power of attorney or instructions shown them. (n)

Article 1903. The commission agent shall be responsible for the goods received by him in the terms and conditions and as described in the consignment, unless upon receiving them he should make a written statement of the damage and deterioration suffered by the same. (n)

Article 1904. The commission agent who handles goods of the same kind and mark, which belong to different owners, shall distinguish them by countermarks, and designate the merchandise respectively belonging to each principal. (n)

Article 1905. The commission agent cannot, without the express or implied consent of the principal, sell on credit. Should he do so, the principal may demand from him payment in cash, but the commission agent shall be entitled to any interest or benefit, which may result from such sale. (n)

Article 1906. Should the commission agent, with authority of the principal, sell on credit, he shall so inform the principal, with a statement of the names of the buyers. Should he fail to do so, the sale shall be deemed to have been made for cash insofar as the principal is concerned. (n)

Article 1907. Should the commission agent receive on a sale, in addition to the ordinary commission, another called a guarantee commission, he shall bear the risk of collection and shall pay the principal the proceeds of the sale on the same terms agreed upon with the purchaser. (n)

Article 1908. The commission agent who does not collect the credits of his principal at the time when they become due and demandable shall be liable for damages, unless he proves that he exercised due diligence for that purpose. (n)

Article 1909. The agent is responsible not only for fraud, but also for negligence, which shall be judged with more or less rigor by the courts, according to whether the agency was or was not for a compensation. (1726)

A

no

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37
Q

Article 1902. may a third person with whom the agent wishes to contract on behalf of the principal require the presentation of the power of attorney, or the instructions as regards the agency?

do private or secret orders and instructions of the principal prejudice third persons who have relied upon the power of attorney or instructions shown them. (n)

26)

A

yes

no

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38
Q

Article 1903. shall the commission agent be responsible for the goods received by him in the terms and conditions and as described in the consignment?

A

yes, unless upon receiving them he should make a written statement of the damage and deterioration suffered by the same.

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39
Q

Article 1904. shall the commission agent who handles goods of the same kind and mark, which belong to different owners, distinguish them by countermarks, and designate the merchandise respectively belonging to each principal. (n)

A

yes

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40
Q

Article 1905. can the commission agent without the express or implied consent of the principal, sell on credit?

Should he do so, may the principal demand from him payment in cash?

A

no

yes, but the commission agent shall be entitled to any interest or benefit, which may result from such sale. (n)

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41
Q

Article 1906. Should the commission agent, with authority of the principal, sell on credit, he shall so inform the principal, with a statement of the names of the buyers. Should he fail to do so, then

A

the sale shall be deemed to have been made for cash insofar as the principal is concerned. (n)

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42
Q

Article 1907. Should the commission agent receive on a sale, in addition to the ordinary commission, another called a guarantee commission, he shall bear what?

A

the risk of collection and shall pay the principal the proceeds of the sale on the same terms agreed upon with the purchaser. (n)

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43
Q

Article 1908. can the commission agent who does not collect the credits of his principal at the time when they become due and demandable be liable for damages?

A

yes, unless he proves that he exercised due diligence for that purpose.

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44
Q

Article 1909. The agent is responsible not only for fraud, but also

A

for negligence, which shall be judged with more or less rigor by the courts, according to whether the agency was or was not for a compensation.

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45
Q

Article 1910. must the principal comply with all the obligations which the agent may have contracted within the scope of his authority.

As for any obligation wherein the agent has exceeded his power, is the principal bound ?

A

yes

no, except when he ratifies it expressly or tacitly.

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46
Q

Article 1911. Even when the agent has exceeded his authority, is the principal solidarily liable with the agent if the former allowed the latter to act as though he had full powers. (n)

A

yes

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47
Q

Article 1912. must the principal advance to the agent, should the latter so request, the sums necessary for the execution of the agency.

Should the agent have advanced them, must the principalreimburse him therefor, even if the business or undertaking was not successful,

A

yes

yes, provided the agent is free from all fault.

The reimbursement shall include interest on the sums advanced, from the day on which the advance was made. (1728)

48
Q

Article 1913. must the principal indemnify the agent for all the damages which the execution of the agency may have caused the latter, without fault or negligence on his part. (1729)

A

yes

49
Q

Article 1914. may the agent retain in pledge the things which are the object of the agency until the principal effects the reimbursement and pays the indemnity set forth in the two preceding articles. (1730)

A

yes

50
Q

Article 1915. If two or more persons have appointed an agent for a common transaction or undertaking, should they be solidarily liable to the agent for all the consequences of the agency. (1731)

A

yes

51
Q

Article 1916. When two persons contract with regard to the same thing, one of them with the agent and the other with the principal, and the two contracts are incompatible with each other, which shall be preferred?

A

that of prior date, without prejudice to the provisions of article 1544. (n)

52
Q

Article 1917. In the case referred to in the preceding article, if the agent has acted in good faith, shall the principal be liable in damages to the third person whose contract must be rejected?

If the agent acted in bad faith, who shall be responsible. (n)

A

yes

him alone

53
Q

Article 1918. The principal is not liable for the expenses incurred by the agent in the following cases:

A

(1) If the agent acted in contravention of the principal’s instructions, unless the latter should wish to avail himself of the benefits derived from the contract;

(2) When the expenses were due to the fault of the agent;

(3) When the agent incurred them with knowledge that an unfavorable result would ensue, if the principal was not aware thereof;

(4) When it was stipulated that the expenses would be borne by the agent, or that the latter would be allowed only a certain sum. (n)

54
Q

Article 1919. Agency is extinguished:

A

(1) By its revocation;

(2) By the withdrawal of the agent;

(3) By the death, civil interdiction, insanity or insolvency of the principal or of the agent;

(4) By the dissolution of the firm or corporation which entrusted or accepted the agency;

(5) By the accomplishment of the object or purpose of the agency;

(6) By the expiration of the period for which the agency was constituted. (1732a)

55
Q

Article 1920. may the principal revoke the agency at will, and compel the agent to return the document evidencing the agency.

A

yes. Such revocation may be express or implied. (1733a)

56
Q

Article 1921. If the agency has been entrusted for the purpose of contracting with specified persons, its revocation shall (1734)

A

not prejudice the latter if they were not given notice thereof.

57
Q

Article 1922. If the agent had general powers, revocation of the agency does not what

A

prejudice third persons who acted in good faith and without knowledge of the revocation. Notice of the revocation in a newspaper of general circulation is a sufficient warning to third persons. (n)

58
Q

Article 1923. The appointment of a new agent for the same business or transaction revokes what

A

the previous agency from the day on which notice thereof was given to the former agent, without prejudice to the provisions of the two preceding articles. (1735a)

59
Q

Article 1924. The agency is revoked if

A

the principal directly manages the business entrusted to the agent, dealing directly with third persons. (n)

59
Q

Article 1925. When two or more principals have granted a power of attorney for a common transaction, any one of them may

A

revoke the same without the consent of the others. (n)

60
Q

Article 1926. A general power of attorney is revoked by

A

a special one granted to another agent, as regards the special matter involved in the latter. (n)

61
Q

Article 1927. An agency cannot be revoked if

A

a bilateral contract depends upon it, or if it is the means of fulfilling an obligation already contracted, or if a partner is appointed manager of a partnership in the contract of partnership and his removal from the management is unjustifiable. (n)

62
Q

Article 1928. The agent may withdraw from the agency by

If the latter should suffer any damage by reason of the withdrawal, the agent must

A

giving due notice to the principal.

indemnify him therefor, unless the agent should base his withdrawal upon the impossibility of continuing the performance of the agency without grave detriment to himself. (1736a)

63
Q

Article 1929. The agent, even if he should withdraw from the agency for a valid reason, must do what ?

A

continue to act until the principal has had reasonable opportunity to take the necessary steps to meet the situation.

64
Q

Article 1930. shall the agency remain in full force and effect even after the death of the principal,

A

yes, 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)

65
Q

Article 1931. Anything done by the agent, without knowledge of the death of the principal or of any other cause which extinguishes the agency, is

A

valid and shall be fully effective with respect to third persons who may have contracted with him in good faith. (1738)

66
Q

Article 1932. If the agent dies, his heirs must

A

notify the principal thereof, and in the meantime adopt such measures as the circumstances may demand in the interest of the latter. (1739)

66
Q

Doctrine of Representation

A

When an agency relationship is established, and the agent acts in the name of the principal, the agent is, insofar as the
world is concerned, essentially the principal acting in the particular contract or transaction on hand. Consequently, the
acts of the agent on behalf of the principal within the scope of the authority given have the same legal effects and
consequences as though the principal had been the one so acting in the given situation.

66
Q

is it necessary that the principal personally encounter the third person with
whom the agent interacts.

A

The law in fact contemplates, and to a great degree, impersonal dealings where the principal
need not personally know or meet the third person with whom her agent transacts; precisely, the purpose of agency is to
extend the personality of the principal through the facility of the agent.

66
Q

Principal

A

the person represented

67
Q

Agent

A

the person who acts for and in representation of another

67
Q

may someone contract in the name of another without being authorized by the latter?

A

no, it should also be considered as
creating between the principal and an agent an on-going legal relationship which imposes personal obligations on
both parties.
This is in consonance with the “personal nature” of every contract of agency. Thus, Rallos held that out of the principle
that no one may contract in the name of another without being authorized by the latter, “sprung the creation and
acceptance of the relationship of agency whereby one party, called the principal (mandante), authorizes another, called
the agent (mandatario), to act for and in his behalf in transactions with third persons.”

67
Q

may one contract in the name of another without being authorized by the latter, or unless he has by law
a right to represent him.

A

no, art. 1317. A contract entered into in the name of another by one who has no authority or legal representation, or who has acted
beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it
has been executed, before it is revoked by the other contracting party.

67
Q

Article 1403. The following contracts are unenforceable, unless they are ratified:

A
  1. Those entered into in the name of another person by one who has been given no authority or legal representation,
    or who has acted beyond his powers
67
Q

The essential elements of agency are:

A
  1. There is consent, express or implied, of the parties to establish the relationship
  2. The object is the execution of a juridical act in relation to a third person
  3. The agents acts as a representative and not for himself
  4. The agent acts within the scope of his authority.
67
Q

The element not included in the Rallos enumeration

A

the cause or consideration of every contract of agency.

The last two elements included in the Rallos enumeration should not be understood to be essential elements for the
perfection and validity of the contract of agency, for indeed they are matters that do not go into perfection, but
rather into the performance stage of the agency relationship.

68
Q

does the non-existence of the two purported essential elements {i.e., that the agent acted for herself and/or the agent acted
beyond the scope of her authority),affect the validity of the existing agency relationship

A

no, it does not affect the validity of the existing agency relationship, but rather the
enforceability of the contracts entered into by the agent on behalf of the principal.

69
Q

The basis for agency

A

representation

70
Q

On the part of the principal, must there
be an actual intention to appoint or an intention naturally inferable from his words or actions?

A

yes. and on the part of the agent,
there must be an intention to accept the appointment and act on it, and in the absence of such intent, there is generally
no agency.

71
Q

only EXCEPTION to the rule that that consent (i.e., the meeting of minds) of both the principal and the agent is necessary to create an agency:

A

the principle of “agency by estoppel;” but even then it is by the separate acts
of the purported principal and purported agent, by which they are brought into the relationship insofar as third parties acting
in good faith are concerned.

72
Q

The object is the

A

execution of a juridical act (service) in relation to a third person

73
Q

what is the cause or consideration in agency

A

the compensation or commission that the principal agreed or committed to pay
the agent for the latter’s services.

74
Q

Under Article 1875 of the New Civil Code, every agency is presumed to be for

A

compensation, unless there is proof to the
contrary.

75
Q

agency contracts are primarily

A

onerous, they may also be constituted as
gratuitous contracts.

76
Q

The value that Article 1875 brings into the Law on Agency is the presumption that every agency contract entered into
is for

A

valuable consideration, that the agency serves for the benefit of the principal expecting to be compensated
for his efforts. It is the party who avers that the agency was gratuitous that the agent agreed to serve gratuitously who
has the burden of proving such arrangement.

77
Q

under the old civil code, Agency was presumed to be

A

gratuitous, the change in the New Civil Code was made in light
of the changing trends in order to harmonize it with Commercial Law

78
Q

the extent and manner by which the agent would be entitled to receive
compensation or commission is based on

A

the terms of the contract, or the meeting of minds between the principal
and the agent.

79
Q

if the nature of the service to be compensated is understood to be based on the results to be
achieved, e.g., that a particular contract with a third party is entered into in behalf of the principal, then

A

mere
rendering of service without achievement of the results agreed upon would not entitle the agent to the compensation
agreed upon.

80
Q

When the rendering of service alone, and not the results, is the primordial basis for which the compensation is
given, then

A

then the proof that services have been rendered should entitle the agent to the compensation agreed upon.

81
Q

Not only is the contract of agency specifically named as such under the New Civil Code, it is a principal contract because it

A

can stand on its own without need of another contract to validate it.

82
Q

The real value of the contract of agency being a “nominate and principar contract is that it

A

has been so set apart by law
and provided with its own set of rules and legal consequences, that any other arrangement that essentially falls within
its terms shall be considered as an agency arrangement and shall be governed by the Law on Agency, notwithstanding any
intention of the parties to the contrary. After all, a contract is what the law says it is, and not what the parties call it.

83
Q

an agency is what in nature

A

onerous, where the agent expects compensation for his services in the form of
commissions.

84
Q

The contract of agency is perfected by

A

mere consent, and is therefore a consensual contract

85
Q

as a general rule, does a contract of agency require form or solemnity to make it valid, binding and enforceable?

A

no

86
Q

Under Article 1869 of the New Civil Code, an agency may be express or implied from either the:

A
  1. Acts of the principal
  2. From his silence or lack of action
  3. Failure to repudiate the agency
87
Q

Consent from the perspective of the Agent
* Under Article 1870 of the New Civil Code, acceptance by the agent may also be express, or implied from either his:

A
  1. Acts which carry out the agency
  2. From his silence or inaction according to the circumstances.
88
Q

CHARACTERISTICS OF A CONTRACT OF AGENCY

A
  1. CONSENSUAL
  2. PRINCIPAL
  3. NOMINATE
    4.1 UNILATERAL
    4.2 BILATERAL
  4. PREPARATORY
89
Q
  1. CONSENSUAL
A

It is based on the agreement of the parties which is
perfected by mere consent.

90
Q

fiduciary

A

involving trust, especially with regard to the relationship between a trustee and a beneficiary.
“the company has a fiduciary duty to shareholders”

91
Q
  1. NOMINATE
A

It has its own name.

92
Q
  1. PRINCIPAL
A

It can stand by itself without need of another contract.

93
Q

4.1 UNILATERAL

A

if it is gratuitous, because it creates obligations for only
one of the parties, i.e., the agent; or

94
Q

4.2 BILATERAL

A

if it is for compensation because it gives rise to
reciprocal rights and obligations; and

94
Q

Qui facit per alium facit per se

A

“He who acts
through another does the act himself”

94
Q
  1. PREPARATORY
A

It is entered into as a means to an end, i.e., the creation
of other transactions or contracts.

95
Q

GRATUITOUS —

A

one where the agent receives no
compensation for his services.

96
Q

COMPENSATED OR ONEROUS

A

one where the
agent receives compensation for his services.

97
Q

OSTENSIBLE OR REPRESENTATIVE

A

agent acts in
the name and representation of the principal.

98
Q

A. Manifestation of consent

A

The principal must intend that the agent shall act for
him, the agent must intend to accept the authority and
act on it, and such intention of the parties must find
expression either in words or conduct between them.

98
Q

SIMPLE OR COMMISSION —

A

agent acts in his own
name but for the account of the principal.

99
Q

B. Agent, by legal fiction, becomes principal

A

In acting for the principal, the agent, by legal fiction,
becomes the principal authorized to perform all acts
which the latter would have him do. Such a relationship
can only be effected “with the consent or authority” of
the principal which cannot, in any way be compelled by
law or by any court.

99
Q

C. Presence/absence of contract or consideration

A

The relationship may be created by operation of law
(e.g. agency by estoppel), or a person who acts for
another as principal may do so gratuitously. Thus,
without a contract or a consideration there can be an
agency or agency powers.

100
Q

is agency revocable? if so, why?

A

Representation constitutes the basis of agency. As it is a
personal contract of representation based on trust and
confidence reposed by the principal on his agent,
agency is generally revocable.

101
Q

B. Acts of agents, by legal fiction, acts of principal

A

The acts of the agent on behalf of the principal within
the scope of his authority (NCC 1881) produce the same
legal and binding effects as if they were personally
done by the principal.

102
Q

ELEMENTS OF AGENCY

A
  1. There is consent, express or implied, of the
    parties to establish the relationship;
  2. The object is the execution of a juridical act in
    relation to third persons;
  3. The agent acts as a representative and not for
    himself; and
  4. The agent acts within the scope of his
    authority.
    ● In addition, the parties must be competent to
    act as principal and agent.
    ● Consideration is not required.
    ● Agency may be oral, unless the law requires a
    specific form.
103
Q
A
104
Q
A
105
Q
A