Agency, CH. 1: Nature, Form, and Kinds of Agency Flashcards
Article 1868 - Definition of Agency
By the contract of agency a person 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.
Article 1869 - Form of agency
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.
Agency may be oral, unless the law requires a specific form.
Article 1873 - Mode of informing third persons of agency
If a person specially informs another or states by public advertisement that he has given a power of attorney to a third person, the latter thereby becomes a duly authorized agent, in the former case with respect to the person who received the special information, and in the latter case with regard to any person.
The power shall continue to be in full force until the notice is rescinded in the same manner in which it was given.
Article 1874 - Agency re: sale of land
When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be in writing, otherwise, the sale shall be void.
Article 1877 - Agency couched in general terms
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.
Art. 1878. Cases requiring an SPA
Special powers of attorney are necessary in the following cases:
(1) To make such payments as are not usually considered 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
Art. 1882. Limits of agent’s authority
The limits of the agent’s authority shall not be considered exceeded should it have been performed in a manner more advantageous to the principal than that specified by him
Art. 1883. Agent acting in his own name
If an agent acts in his own name, the principal has no right of action against the persons with whom the agent has contracted; neither have such persons against the principal.
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.
