Art. 1868. By the contract of agency, a person a.

Attorney-at-law; and
binds himself to render some service or to do
something in representation or on behalf of another,
with consent or authority of the latter.
Parties to the contract
Principal person represented
Agent person who acts for and in
representation of another
b. Attorney-in-fact
3) Whether it covers acts of administration or
acts of ownership
a. General power of attorney power to
pursue the ordinary or regular course of
business of the principal; and
b. Special power of attorney i.e. power
to sell

Elements of contract of agency Agency distinguished from similar contracts

1) Consent principal must intend that the agent Employment contract

shall act for him; the agent must intend to Contract for a piece-of-work
accept the authority and act on it, and the Management agreement
intention of the parties must be expressed either Contract of sale
in words or conduct between them Contract of brokerage
2) Object service, which is the legal undertaking
of the agent to enter into juridical acts with
third persons on behalf of the principal
3) Cause commission or compensation
Art. 1875. Agency is presumed to be for a
compensation, unless there is proof to the contrary.
Essential characteristics of agency
1) Nominate and principal
2) Consensual
Art. 1869. 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.
Art. 1870. Acceptance by the agent may also be
express, or implied from his acts which carry out the
agency, or from his silence or inaction, according to
the circumstances.
3) Unilateral and primarily onerous
4) Personal, representative and derivative
Art. 1897. 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.
5) Fiduciary and revocable
6) Preparatory and progressive
Kinds of agency
1) Based on the business or transactions
covered:
a. General agency; and
b. Special agency
Art. 1875. An agency is either general or special.
The former comprises all the business of the principal.
The latter, one or more specific transactions.
2) Whether or not it covers litigation matters