Agency, CH. 4: Modes of Extinguishment of Agency Flashcards
Art. 1919. Modes of extinguishing agency
Agency is extinguished:
(1) By its revocation;
(2) By 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.
Art. 1920. Power of principal to revoke agency
The principal may revoke the agency at will, and compel the agent to return the document evidencing the agency. Such revocation may be express or implied.
Art. 1923. Effect of appointment of new agent
The appointment of a new agent for the same business or transaction revokes 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.
Art. 1927. Agency coupled with interest
An agency cannot be revoked if 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.
Art. 1928. Agent’s withdrawal from agency
The agent may withdraw from the agency by giving due notice to the principal. If the latter should suffer any damage by reason of the withdrawal, the agent must 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.
Art. 1930. Effect of death of principal on agency
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.
Art. 1931. Acts by agent after principal’s death
Anything done by the agent, without knowledge of the death of the principal or of any other cause which extinguishes the agency, is valid and shall be fully effective with respect to third persons who may have contracted with him in good faith.
Art. 1932. Death of agent
If the agent dies, his heirs must notify the principal thereof, and in the meantime adopt such measures as the circumstances may demand in the interest of the latter.
