Express

1923: If a new agent has been appointed for the
The provision is without prejudice to the need to
same business or transaction handled by the old notify specific persons or the general public, per
agent, revocation will take effect on the date of 1921 and 1922
General Rule 1920: Agency is revocable at will. It may be...
notice to the old agent
Implied
1924: If the principal directly manages the business However, intent is important; if the principal normally
entrusted to the agent, and deals directly with third works on the business from time to time, it should
parties, the agency is revoked not be construed as revocation

1921: If the agency was constituted for the purpose

of contracting with specific persons, notice has to be
given to the latter to make it binding upon them

Knowledge of the revocation is necessary to make

1922: If the agent was authorised to transact with
the general public, third persons in good faith
without knowledge of the revocation are not
prejudiced by the principal's revocation.
such revocation binding upon them.
Publication of such revocation in a newspaper of
general circulation is sufficient notice.

The general agent loses authority to manage the

1926: A grant of general power of attorney to one
agent is revoked by a grant of special power attorney
to another agent, with respect to the special matter
involved in the special power granted
Revocation
Casis: Properly interpreted, this contemplates a
general agent already handling all the businesses of
the principal and a special agent being subsequently
appointed to handle one of those business
business that was assigned to the special agent; he
retains management over the remaining businesses
left in his charge.
By definition, the general agent ceases to be a
general agent and becomes a special agent as well
as he does not handle all of the businesses of the
principal anymore

Exceptions Bilateral contract depends upon the agency

Agency is the means of fulfilling an obligation already

contracted

Partner is appointed manager of the partnership in

the contract of partnership and his removal from the
Cases (1927 and 1930) management is unjustifiable

Agency is constituted in the common interest of the

1927: Agency coupled with an interest principal and the agent or in the interest of a third
person who has accepted the stipulation in his favor;
agency remains in full force and effect even if the
principal dies

GR: In these cases, agency cannot be revoked at will

Principal "...irrevocability of the power of attorney may not be

Firm or corporation may either be the... Dissolution of the Firm or Corporation Effect EX: In Caleongco v. Caparols, however, the Court
used to shield the perpetration of acts in bad faith,
Agent stated that the agency coupled with an interest may
breach of confidence, or betrayal of trust by the
be revoked for a just cause
Extinguishment of the Agency Relationship agent..."
Accomplishment of the Object or Purpose of the
Agency 1925: If there are two or more principals who have
granted a power of attorney to an agent for a
Expiration of the Period of Agency
common transaction, any one of them may revoke
the agency without the consent of the other co-
principals.

GR: The agent must indemnify the principal for ay

damage suffered by the latter by reason of the
withdrawal
1928: The agent may withdraw from the agency by
giving notice to the principal EX: Unless the agent's basis for the withdrawal is the
impossibility of continuing the performance of the
agency without grave detriment to himself
Withdrawal
1929: The agency relationship will still subsist after
withdrawal until the principal has had reasonable
opportunity to take the necessary steps to meet the
Effect
situation

After which, the agency will be extinguished

Death

Civil Interdiction
Cases
Insanity

Insolvency

GR: In these cases, the agency is extinguished

GR: In these cases, agency cannot be revoked at will

1930: Agency is constituted in the common interest of
the principal and the agent or in the interest of a third
person who has accepted the stipulation in his favor;
agency remains in full force and effect even if the
Change of Status of the Principal principal dies
"...irrevocability of the power of attorney may not be
Effect EX: In Caleongco v. Caparols, however, the Court
used to shield the perpetration of acts in bad faith,
stated that the agency coupled with an interest may
breach of confidence, or betrayal of trust by the
be revoked for a just cause
agent..."

Agent acted without knowledge of principal's death

Effect Grounds (Rallos v. Felix Go Chan) Third person who contracted with the agent acted in
EX
good faith

1931: Agent had no knowledge of principal's death Contract is binding

and entered into a contract with a third person in
good faith Effect Casis: Same rule applies even if the cause of the
extinguishment of the agency was something other
than the principal's death

Note: This exception is strictly construed (Rallos v.

Felix Go Chan)
By: Ron Husmillo