Rights of the Agent
agent.
1892 - when the principal personally chooses an agent in spite of the
existence of a previous agent, then there is implied revocation
Fundamental Obligations of an Agent
Carry out agency
Act within scope
Act on behalf of Principal
Essence:
Representation
Act within the Scope of the Authority
1881 - The agent must act within the scope of his authority. He may
do such acts as may be conducive to the accomplishment of the
purpose of the agency (conducive to the accomplishment; act within
the scope of his authority)
1882 - The limits of the agents authority shall not be considered
exceeded should it have been performed in a manner more
advantageous to the principal than that specified by him.
1900 - So far as third persons are concerned, an act is deemed to have
been performed within the scope of the agents 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 the agent.
1901 - a third person cannot set up the fact that the agent has exceeded
his powers, if the principal has ratified, or has signified his willingness
to ratify the agents acts.
NOTES:
Authority - Cause; emanates from the Principal, and is given to the
Power - After the existence of the Cause, the Agent now has the power;
the effect of giving authority; power to act on behalf of the Principal.
The agency must be equated with the principal.
In 1901, ratification prevents any issue on want of authority. However,
the third person may revoke the contract with the agent prior to the
Principals ratification.
Acting Within the Scope
Authorized but Acted on his Name:
The Principal is not bound by the matter, because he exceeded his
authority. If what is involved belongs to the Principal.
No Authority but Acted in the Name of the Principal:
Only the agent is liable, unless principal ratifies the act done by the
agent.
Agent no Authority But Acted in His Name:
Agent is personally liable.
Act in Accordance within the Scope (within Instructions)
1887 - in the execution of the agency, the agent shall act in accordance
with the instructions of the principal.
Note the difference:
Authority - sets forth the parameters or the extent of the contract of
agency
Given to the agent for the latter to follow with regard to the discharge
of its duties; has to do with the execution of the authority
Third persons dealing with the agent who are not privy to the matter
are not bound by the instructions.
The instructions, although not part of the agency forms part of the
agency.
1929 - agent even if he should withdraw from the agency for a VALID
REASON, must continue to act as agent until the principal has had
reasonable time to take the necessary steps
ADVANCE THE FUNDS
1886 -

Instructions agreed upon determines the DEGREE OF DILIGENCE Duty To Promote Principal

Look into the contract, before the degree of diligence is appreciated.
Faithful compliance removes liability from the agent, unless the
aforesaid exceptions. Exceeding his authority or dealing away with the
instructions may be a basis for his liability.
Liable for Damages, conflict of interest, must timely revoke the
contract of agency, but must make sure that the renunciation is done in
good faith.
Duty to Account

1899 - if a duly authorized agent acts in accordance with the orders of
the principal, the latter cannot set up the ignorance of the agent as to
circumstances whereof he himself was, or ought to have been aware.
Goods entrusted must be in good condition, with the warranties
necessarily in place.
1891 - bound to render an account in the transaction;
No right to hold the money, only the object of the agency through
pledge. He is otherwise liable for estafa for doing so.
Pay Interest

The one liable is the principal. 1896 -

CARRY OUT AGENCY Liable for Fraud or Negligence

1884 - Bound by acceptance, must also finish business began on the 1908
death of the principal

1888 - execution would manifestly result in loss or damage to the

principal.

1885 - decline agency, good father of a family, etc.

LIABILITIES

When the contract is silent, liability is ensured. If the period agreed upon had expired but the agent has continued to
make representations, would the contract of agency still arise?
Liable to third persons
If the principle is aware of what the agent has been doing, then there
1883 can be a contract of agency by estoppel
1897
1898

Rationale behind the exception of liability is to prevent collusion

between the principal and the agent.

COMMISSION AGENTS:

1903 - 1908

Consignment - 100 k but it was paid on installment, the Principal may

demand the whole of 100 k and the additional money gained by the
agent shall be his.

Guarantee commission

Agent shall serve as a guarantor insofar as the purchasers are

concerned.

Agent cannot use the defense of principle of excussion in instances

where he became the guarantor

A commission agent enters into the contract in his name and no right
of representation accrues in his favor.

1920 - revoke the agency at will, may be express or implied.

1930 1933 1884 par. 2 - exemptions on the extinguishment upon death