Agency

Question 1

Is agency a contract?

Answer 1

YES, Agency is a contract, hence, it must comply with the basic requisites of contracts.

Question 2

What are the requisites of contract?

Answer 2

Object - the service being rendered by the agent.
Consent - both parties must agree. Agent must be authorized by the person who authorizes him (principal).

Question 3

Who is an agent?

Answer 3

An agent is a person who binds himself to render some service or to do something in representation or on behalf of another (principal) by the latter’s consent, unless he has by law a right to represent him.

Question 4

What is agency?

Answer 4

Is a contract in which a person binds himself to render some services or to do something in representation of another (principal) with the latter’s consent or authority.

Question 5

What will happen if there was no authority from the principal?

Answer 5

Contract shall be unenforceable unless ratified expressly or impliedly, by the person on whose behalf had been executed, before it is revoked by other contracting party.

Question 6

What are other contracts that are unenforceable?

Answer 6

1. entered into in the name of another person by one who has been given no authority, or who has acted beyond his powers;
2. do not comply with the Statute of Frauds.
3. Those where both parties are incapable of giving consent to a contract.

Question 7

What is valid, voidable, and unenforceable contract?

Answer 7

1. valid contract can be enforce.
2. voidable contract is legal and parties can enforce it.
3. void - cannot be enforce and illegal.

Question 8

Who are the parties to a contract of agency?

Answer 8

1. Principal or person represented - source of authorization.
2. Agent - person who acts for and in representation of another.

Question 9

Is agency unilateral?

Answer 9

YES, only one person binding himself.

“Doctrine of representation” - representation for another person and not for yourself.

Question 10

When is agency extinguished?

Answer 10

1. revocation;
2. withdrawal of agent;
3. death, civil interdiction, insanity or insolvency of principal or of agent;
4. dissolution of firm or corporation which entrusted or accepted the agency;
5. accomplishment of the object or purpose of the agency;
6. expiration of period which agency was constituted.

Question 11

What are the qualifications of a principal?

Answer 11

1. natural or juridical person;
2. he must have capacity to contract.

Question 12

What is the element of subject matter?

Answer 12

The object of the contract of agency, is service, which is the legal undertaking of the agent to enter into juridical acts with 3rd persons on behalf of the principal.

Question 13

What is the element of consideration or commission?

Answer 13

Art. 1875. Agency is presumed to be for a compensation, unless there is proof to the contrary.

Question 14

Can agency be oral?

Answer 14

YES, agency may be oral, unless the law requires a specific form.