LIABILITY OF THE AGENT TO THE PRINCIPAL

GR: JOINT and PERSONAL EXCEPT: 1. Agent binds himself MEANING, solidary liability is agreed upon. If there are two or more agents, each agent is liable for the fault or negligence of his fellow agents. 2. If the agent(s) acted beyond the scope of their authority without giving sufficient notice to the party whom he transacts regarding the limits of his powers. EXCEPTION TO THE EXCEPTION: The agent who acted beyond the scope of his authority is liable alone. MEANING: HE is PERSONALLY LIABLE. IN ADDITION: THE AGENT IS LIABLE FOR INTEREST\ 1. On sums which he have converted and applied to his own use from the dday on which the agent converted the sums (from the day of conversion) 2. On sumes whuich he still owes the principal after expiration or extinguishment of the agency. In all cases, the principal may sue the agents without prejudice to any actions for recovery between the agents. As a general rule, If there are 2 or more agents, liability is joint and personal unless solidary liability has been agreed upon. THE AGENT MAY APPOINT A SUBSTITUTE if the principal did not prohibit him from doing so; but the agent shall be responsible for the acts of the substitute: 1. When he was not given the power to appoint a substitute 2. When he was given the power to appoint a substitute but the principal did not designate any person, and the person appointed was notoriously incompetent or insolvent.