Agency, CH.2: Obligations of the Agent Flashcards
Art. 1884. Agent’s obligation to carry out agency
The agent is bound by his acceptance to carry out the agency, and is liable for the damages which, through his non-performance, the principal may suffer.
He must also finish the business already begun on the death of the principal, should delay entail any danger.
Art. 1885. Duty of the person declining to be an agent
In case a person declines an agency, he is bound to observe the diligence of a good father of a family in the custody and preservation of the goods forwarded to him by the owner until the latter should appoint an agent. The owner shall as soon as practicable either appoint an agent or take charge of the goods.
Art. 1886. Agent’s advance of funds
Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so except when the principal is insolvent.
Art. 1887. Agent re: instructions of principal
In the execution of the agency, the agent shall act in accordance with the instructions of the principal.
In default thereof, he shall do all that a good father of a family would do, as required by the nature of the business
Art. 1889. Conflict of interest
The agent shall be liable for damages if, there being a conflict between his interests and those of the principal, he should prefer his own.
Art. 1890. Agent authorized to borrow or loan money
If the agent has been empowered to borrow money, he may himself be the lender at the current rate of interest. If he has been authorized to lend money at interest, he cannot borrow it without the consent of the principal.
Art. 1891. Duty of accounting
Every agent is 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 void.
Art. 1892. Appointment of sub-agent
The agent may appoint a substitute if the principal has not prohibited him from doing so; but he shall be responsible for the acts of the substitute:
(1) When he was not given the power to appoint one;
(2) When has 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.
Art. 1894. Co-agent’s solidary liability
The responsibility of two or more agents, even though they have been appointed simultaneously, is not solidary, if solidarity has not been expressly stipulated.
Art. 1895. Effects of agent’s agreeing to solidary liability
If solidarity has been agreed upon, each of the agent is responsible for the non-fulfillment of the agency, and for the fault or negligence of his fellow agents, except in the latter case when the fellow agents acted beyond the scope of their authority.
Art. 1896. Agent’s liability to pay interest
The agent owes interest on the sums he has applied to his own use from the day on which he did so, and on those which he still owes after the extinguishment of the agency.
Art. 1897. Liability of agent to third person
The agent who acts as such is not personally liable to the party with whom he contracts, unless he expressly binds himself or exceeds the limits of his authority without giving such party sufficient notice of his powers.
Art. 1898. Agent contracting beyond scope of authority
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 power granted by the principal. In this case, however, the agent is liable if he undertook to secure the principal’s ratification.
Art. 1900. Acts within terms of written power of attorney
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 agent.
Art. 1902. Demand to present power of attorney
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.
