Modes of extinguishment of agency

Prepared by: Bunagan

Agency is extinguished:
By agreement (no. 5 & 6 of Art. 1919) By subsequent acts of the parties: both parties or mutual consent unilateral act of one of them (no. 1 & 2) By operation of law (no. 3 & 4)

 Death, civil interdiction, insanity or insolvency of the principal or of the agent Dissolution of the firm or corporation Accomplishment of object or purpose Expiration of term Loss or destruction of the subject matter

Change of conditions
General rule: Where there is basic change in the circumstances surrounding the transaction

Change of conditions
Exceptions: (1) Original circumstances restored within a reasonable time (2) Agent has reasonable doubts as to whether the principal would desire him to act (3) Where the principal and agent are in close daily contact

Revocation by principal
General rule: revocable at will of the principal regardless of the term Exceptions: article 1927

Implied revocation may be effected:

act in appointing another agent for the same business or transaction act principal in directly managing the business entrusted to the agent act in subsequently granting a special power of attorney to another agent

Renunciation by agent
Agent abandons the object of his agency Agent institutes an action against his principal

Effect of revocation to third persons

If authorized to contract with specified persons, will not prejudice third persons If authorized to contract with public in general, publication in newspaper is sufficient

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