DISCUSSION ON AGENCY STARTS WITH ARTS 1868 1932 LAW IS divided into 4 chapters 1st definition 2nd- obligation

on of the agents 3rd obligation of principal 4th how it is extinguished Agency allows someone to expand himself To reachout where his physical being cannot do. By appointing as many reps as he wants then he may reach those. If he cannot be allowed he will not be able to do these things. Agent therefore is not just ministerial representative, I could employ somebody to do ministerial acts but not necessarily an agent. A security guard may be hired thru an agency but not as an agent but he is performing a function purely ministerial. - He could be there, because he memorizes his function, inspects your id, your attire, your shorts. Agent therefore is someone to perform an act or render in behalf of the other, with that act constituting a juridical act binding to third person But 1868 does not accurately define the agency o This is so vague o But its intention is to constitute the agent o The lawful extension with authority to bind 3rd persons - First of all its a contract - Parties are o Agent o Principal Distinctions o As distinguished from guardianship The ward has no capacity, but the agent must have the capacity The principal is required to be capable unless he is he cannot appoint an agent Although the minor is incapable to appoint While a minor cannot appoint, a principal also cannot appoint a minor as his agent because that minor cannot have the capacity ot enter o As administrator is appointed by a court o An employee is a representative but the relationship is that of ER-EE Classification - As to creation o Express Oral Written o Implied Various forms No need of any express

Implied from Silence Inaction Failure to repudiate knowing is acting on his behalf of his authority

As to character o Gratuitous o Onerous Extent As to extent o General Authorizing the agent in all of his properties or business Continuing and unrestricted Example your parents for business for good for the US and leaving behind the business and appoint you as agent to manage all the manage all the business This is general and includes only acts of administration o Special Specific acts Later we realize that acts of dominion like selling or any acts of ownership Temporary and very limited Very specific and must contain the specifics of the lot to be sold Even if there are several lots it could be contain in one SPA so long as it is specified No specific form o Except with the sale of specific land o It can be declared null an void because you didnt have a SPA

Burden of proof - To the party claiming to be the agent Acceptance by the agent - Express or implied - As to appointment it is express or implied also If agent receives power of attorney and accepts without saying without saying yes - That is implied acceptance Execution of Special Power of Attorney - Authorizes an agent Agency is presumed to be onerous - Meaning if you didnt mention it in the acceptance it is presumed to be onerous - Compensation is presumed - If you are acting to sell a parcel of land o If the agency does

as we learn in partnership - Partners cannot do acts of dominion - Same here in agency the acts of dominion cannot be made without an SPA o Novation o Transfer o Giving of gifts which are not customary, Gifts of small value need not be covered o Authority to borrow o To lend o Acts of strict dominion - These all require SPA Basic principles in determing whether or not the agent can perform a particular act - Agency - A - So that here the agent authorized to sell, he cannot be allowed to mortgage In the same manner if you are authorized to mortgage you dont have authority to sell. Power to buy or sell excludes - Power to compromised excludes power to submit to arbitration Agents acts must act within authority o When the acts performed though exceeded was more advantageous to principal then it is allowed o Therefore when it is advantageous the expansion of authority by the agent is allowed under special circumstances Because the agency powers include Actual Apparent General Special Necessity Under emergency, this justify the agent to perform acts beyond authority Agent is liable personally o When he has no authority o Even if he has authority but did not disclose the principal I promise to pay Mr. A P10M. Sgd. By Espedido Here there is no disclosure of the principal And the agent is therefore liable personally To recover damages and if confusing the remedy is o INTERPLEADER Ask the court to determine who among the defendants are liable o As we said, unless the principal is indicated the agent maybe made liable

OBLIGATION OF THE AGENT - The agent shall act with utmost goodfaith and loyalty

o Meaning principals interest prevails Obey instructions o The principal was told to meet the agent at 6am at Satander, and was instructed to take the first available means of transportation But the agent took the horse carriage as the first available means of transportation Although you must comply with the instructions, but if it will be disadvantageous to the principal you may disobey o So that here come the driver of the principal bringing one truck of fresh vegetables to the house of agent stating to sell it today The agent decline, unfortunately not. the law says that he must take care of the goods like a good father of a family He has options, he may sell it around the subdivision or rent a refrigerated bar for the vegetables or he could give it to DSWD or BJMP and other several options (MCQ OPTION) If the agency is decline what would be the option of the agent? o What is the difference with power from authority? Power authorize to sell the property at such prize as you may find fair and reasnable Instruction the SP should not go down from P1M The agent sold at P850M Did he comply? No. o If there is a violation of instructions, ofcourse the agent is liable. But if the buyer is not liable for damages, should the agent be liable to the principal? o In one situation the principal authorize to borrow money and instructed to come immediately to the office There was a call before he could go back to the office, that the son of the principal was in an accident and Did he violate? Yes. But it was an emergency and the agent is justified. o if you have authority to borrow, you could borrow but if you have authority to lend you could not borrow Exercise reasonable care

SUBSTITUTED AGENT - Agent is liable for acts of subagent o No authority to appoint the sub agent o When the there is authority the appointed agent was notoriously incompetent and insolvent o - If the agent was given was specifically name then he is not liable o He is not liable Example: MCQ The principal appoints an authority to take care of farms while he is away. The agent was given authority to appoint sub agent. The agent appointed the UP vet, and ordered the most expensive When a child said yaya to sell IPOd, yaya sold it and bought Golf. - After a week, the child wanted it back. Answer tonight

Agent could either written or oral - Written prevails in case of conflict o Even if exceed oral authority but within the written, still not liable While the principal may disown the act of agent - The third party may also question the act when he discovers later that there was no authority - Example when agent has no authority to sell the car of owner o When he got the check, the car owner accepted it and deposited o The owner then did not want the car anymore o Can he demand the return the money and the car, on the ground of no authority of the agent? MCQ Commission agent on who has been given the possession and custody of the thing and subject matter of the agency, with an obligation to immediately to remit the proceeds once the sale is done, the good thing is the agent can overprice. - If he is to remit a certain amount thats Guarantee commission agent agent who guarantees payment - More than the guarantee to sell it and to pay if the 3rd party cannot pay - Called in the business as FACTORING AGREEMENTS or ASSIGNMENT OF RECEIVABLES o Receivables are sold to the bank and will be paid if it will not be collected but the payment of unpaid will be at a lesser OBLIGATIONS OF THE PRINCIPAL - Responsible for the acts of the agent o Within authority - He who acts through another does it to himself - Improper behavior o Though it may appear to be improper but it may be still be within o 2 factors for the principal to be liable Act must be done in his desire to serve the Deviation/violation must not be too extreme from the normal conduct of the business that we could say that it is not part of the agency Situation: Agency to sell House and Lot, and the agent in his quest to sell the HL helped in curing the child of the potential buyer. Is the principal liable for the death of the child? Same agent to sell jewelry of principal. Walking along the street beforehand he heard group of drunk men destroying the camote and bananas of the vendor. So that the agent pretended to be brave. But still the drunk men got the jewelry forcibly but the agent killed one of the men in protecting the jewelry. Is the principal liable? Nature of liability of partners similar to agency - If there are several agent joint - If several principal solidary among principals

What could happen if the principal after authorizing the agent, acts the same. For example the land was sold by the agent and also by the principal - The law on agency says that if they are so incompatible, generally we determine the DATE, that of an earlier date must be binding. The late seller is liable for damages if the buyer is in good faith. - Problem is they did not know - Personal property GR first to register PLEASE RECONCILE WITH THE PREVIOUS NOTES - Immovable property GR prior date, Then first to register If both register at the same time, the first possessor, its 90% ownership If both possess at the same time, the oldest title must prevail Extinguish of liability / agency - Revocation - Withdrawal - By agreement - Object accomplished - Expiration of period - By death o Of principal Since there is no one to represent, since the moment person dies succession comes in IF THERE IS A COMMON INTEREST BETWEEN THE DEATH WILL NOT BE EXTINGUISHE IF THERE IS A STIPULATION POR AUTRUI DOES NOT EXTINGUISHED BY DEATH OF EXAMPLE: mr. A was the agent of P to pay C the debt. The principal died following died, following the death, the agent sold the land and then paid the debt, was the sale valid,YES.. MCQ It is also the 2 instances where the agency is not revocable Civil interdiction Insolvency o Of either parties Dissolution of the corp or partnership o As parties

Revocation by the principal - As a general rule since it is based on trust - Principal may always revoke it based on loss of trust at anytime o Except if the agency is one way of fulfilling an obligation or there is COMMON INTEREST WITH THE PRINCIPAL AND AGENT Example I owe Mr. A, P100k and appoints the A as agent to sell in 150 This is cannot be revoke since this is with mutual interest - Or the agent may withdraw from the agency as when he cannot be incapacitated anymore. o Must be done in good faith

Liable for damages if made by other bad intentions Interest of principal must also be protected Here he also should continue taking care of the goods until the principals took possession If the agent dies the heirs are obliged to take care of the goods and communicate to the principal o The heirs should do this even if not privy to the contract because (maybe for humanitarian reasons) o

Actual questions: 1. Once the agent accepts to carry out the agency a. He has the always has the option to perform his duties or offer to pay penalty b. He has the absolute right to delegate his duties to another c. He is bound to pay damages to the principal suffered for his failure to perform d. He need not perform his duties being an onerous contract 2. A authorize B, to sell Ps diamond ring to be able to pay P10,000 debt that B earlier owes P and later A return the ring and wanted to withdraw from the agency. B refused and wanted A to carry out the agency. May A withdraw? a. No, only death, insanity or civil interdiction can dissolve an agent from carrying out his responsibility b. Yes, otherwise there is involuntary servitude in compelling B c. No, because the agency is coupled with interest as payment to Ps debt depends upon As compliance d. Yes, anytime as the principal may also revoke anytime e. No, having agreed earlier A is now estopped from acting as an agent 3. Mr. O before die bequeathed his row of 3 condo units giving one each to his children named Q, R, and S. In turn the heirs executed SPAs authorizing A to sell their respective condo units. After selling all the units to the only buyer B, S refused to pay A his agreed commission. While Q R promptly comply with their respective obligations to A. From whom may A demand the remaining commission? a. From all the brothers as they are presumed to be solidary liable b. From any of the brothers as the obligation of one is the obligation of all c. From S alone, since among principals they are liable only with respective obligations d. From S only, because the commission pertains to the sale of his unit 4. Having authorize to borrow money from L, a money lender. A on his way to remit the amount on his way robbed by armed men, and in rush to inform the Principal about the incident aboard his owned motorcycle, he ran over a child who eventually died. May B held liable for the acts of A? a. Yes, because B gave an apparent authority b. Yes, because an emergency c. No, since his negligence has exceeded his authority d. No, as the case was case purely personal acts of A 5. After authorizing A to sell his car at a prevailing market price, B gave an oral instruction not to sell the same not lower than P150k, unable to exercise a better price and with his desire to carry out his authority given by B, A sold the same at P125k. Thus, a. Buyer is not entitled to sell the car since A exceeded the authority b. B is not bound with it because A did not comply with his instructions

c. A is not liable for damages because deviation is justified d. Buyer can demand for the delivery of the car even if A did not follow the instructions e. Buyer is not bound by the instructions of B and may demand damages 6. P issued and instructed A to encash from a bank, a check P12 500 but A altered it to make it appear that P125 000 and was able to encash it. Upon learning of the withdrawal P now demands from the bank to return to his account the excess of amount. What may the bank do? a. Pay b. Not Pay, because the agent has exceeded his authority c. Refuse because by entrusting the check to A, he gave an apparent authority d. Refuse because P is guilty of the estoppels e. Refuse because 7. A as agent of B was given an SPA to sell a propert at P1500/sqm Bs property which was beside As property. The buyer upon seeing the property decided to buy As property and offered P2000/sqm. Since it was a good price A immediately agreed to sell his property. Entitled to full accounting B how demands from A the proceeds of the sale. What will A do? a. Surrender all the proceeds to B b. Surrender the difference of P500/sqm c. Surrender nothing at all d. Buy Bs property at P1500, to satisfy B. GVIVE THE MOST ACCURATE ANSWER