LESSON 3 PART 1 Flashcards
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 1868)
Agency
Characteristics of a Contract of Agency
Principal
Consensual
Nominate
Bilateral
Commutative
Onerous
Preparatory
The contract of agency does not need another contract for its existence.
Principal
It is perfected by mere consent.
Consensual
- It has its own name.
Nominate
It creates obligation for the agent (to render service) and the principal (to compensate the agent). If there is no compensation, then it is unilateral.
Bilateral
Both parties are obligated to each other, except in a unilateral contract.
Commutative
In bilateral contract, it is burdensome for both parties. However, if the contract is unilateral, then it is gratuitous.
Onerous
It is entered into in preparation for another contract.
Preparatory
Elements of a Contract of Agency
Consent
object
representative
authority
Parties to the Contract of Agency
Principal (mandante)
Agent (mandatorio)
The person who grants authority to another to act on their behalf.
Principal (mandante)
The person who is authorized to act on behalf of the principal
Agent (mandatorio)
Acts That May Be Delegated to an Agent
General rule
Any act
Acts That May Be Delegated to an Agent
Exeptions
- Personal Acts
- Acts not allowed by law
Purpose of Agency
to extend the personality of the principal
Nature of Agency
personal
representative
derivative
This follows the principle: “Qui facit per alium facit
per se,” meaning
“He who acts through another, acts himself.”
Based on trust and confidence. The agent is personally chosen by the principal, and the relationship is generally non-transferable unless expressly allowed
Personal Nature
The agent acts on behalf of the principal, and their decisions and actions, are legally considered as the principal’s actions.
Representative Nature
The agent’s authority comes directly from the principal and is limited to the powers granted. Actions beyond this authority may not be legally binding.
Derivative Nature
