Agency, CH. 3: Obligations of the Principal Flashcards
Art. 1910. Obligations of principal on obligations contracted by agent
The principal must comply with all the obligations which the agent may have contracted within the scope of his authority.
As for any obligations wherein the agent has exceeded his power, the principal is not bound except when he ratifies it expressly or tacitly.
Art. 1911. Agency by estoppel
Even when the agent has exceeded his authority, the principal is solidarily liable with the agent if the former allowed the latter to act as though he had full powers.
Art. 1912. Obligation of principal to advance funds
The principal must advance to the agent, should the latter so request, the sums necessary for the execution of the agency.
Should the agent have advanced them, the principal must reimburse him therefor, even if the business or undertaking was not successful, provided the agent is free from all fault.
The reimbursement shall include interst on the sums advanced, from the day on which the advance was made.
Art. 1913. Obligation of principal to indemnify agent
The principal must also 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.
Art. 1914. Retention in pledge
The agent may 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 preceeding articles.
Art. 1915. Two principals for a common transaction
If two or more persons have appointed an agent for a common transaction or undertaking, they shall be solidarily liable to the agent for all the consequences of the agency.
Art. 1916. Double sales by agent and principal
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, that of prior date shall be preferred, without prejudicie to the provisions of Article 1544.
Art. 1918. Cases where principal not liable for expenses
The principal is not liable for the expenses incurred by the agent in the following cases:
(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.
