I.

NATURE, FORM AND KINDS OF

AGENCY
A. Defnition (Article 1868)
1. contract
2. a person binds himself
3. to render some service or to do
something
4. in representation or on behalf of
another
5. with the consent or authority of the
latter
. C!"r"cteri#tic#
1. consensual perfected by mere
consent
2. principal
3. unilateral (if gratuitous) or bilateral
(if onerous)
4. preparatory entered into for the
creation of other transactions
5. personal e!tinguished by death of
either party
". #duciary
$. representative
Orient Air Ser$ice# $. CA
%he purpose of agency is to e!tend the
personality of the principal through the
facility of the agent.
R"llo# $. Feli% Go C!"n
&ssential elements of agency'
consent( e!press or implied
ob)ect is the e!ecution of a )uridical
act in relation to 3
rd
persons
agent acts as a representative and
not for himself
agent acts within the scope of his
authority
C. Kin&#
1. As to manner of creation
a. &!press agent is actually
authori*ed by principal( orally
or in writing
G'tierre( )er*"no# $. Oren#e
+wner testi#ed in court that he consented
to the sale of his property that he did not
previously authori*e. %here was rati#cation
by owner and this produced the e,ect of an
e!press agency.
b. -mplied implied from the acts
of the principal( from his
silence or lac. of action or his
failure to repudiate agency
.nowing that another person is
acting in his behalf without
authority or from the acts of
the agent in carrying out
agency
+o!nlo Tr"&in, $. Flore#
/ervice upon local authority of a foreign
corporation of a summons intended for said
corporation can be deemed su0cient to
bind his client since he was the only person
in the 1hilippines charged with the duty of
settling claims against it.
C'i#on $. CA
%he fact that the agent defrauded the
principal in not turning over the proceeds
of the transaction to the latter does not
relieve the principal from liability to the 3
rd
person who relied on the agent2s authority.
c. +peration of law
1) death of principal
Article 188-. Agent must #nish business
already begun on death of 1 if deal entails
danger
Article 1./0. Agency remains in full force
and e,ect even after 12s death if
constituted in the common interest of 1 3
A( or interest of 3
rd
person who accepted
stipulation in his favor
Article 1./1. Acts done by A w4o
.nowledge of 12s death or any act which
e!tinguishes agency are valid and e,ective
with regard to 3
rd
persons who contracted
in good faith
Article 1./1. %he heirs of A must notify 1
of A2s death and adopt measures as
circumstances may demand in the interest
of 1
2) refusal or withdrawal of
agency
Article 1882. A person who declines an
agency is bound to observe the diligence of
a good father of a family in the custody and
preservation of the goods forwarded to him
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
by the owner until the latter should appoint
an agent or ta.e charge of the goods
Article 1.1.. -f the agent should
withdraw for a valid reason( he must
continue to act until the principal has had
reasonable opportunity to ta.e the
necessary steps to meet the situation.
2. As to character (Article 1862)
a. gratuitous no compensation
b. onerous general rule is
agency presumed to be
compensated
3. As to e!tent of business covered
(Article 1866)
a. general comprises all the
business of 1
b. special comprises one or
more speci#c transactions
4. As to authority conferred (Article
1866)
a. couched in general terms
comprises only acts of
administration
b. couched in speci#c terms
authori*es performance of
speci#c act4s
5. As to nature and e,ects
a. ostensible or representative A
acts in the name and
representation of 1
b. simple or commission A acts
in his own name but for the
account of the principal
D. For*
Article 186.. Agency may be oral( unless
the law re5uires a speci#c form.
Article 186-. 6hen a sale of a piece of
land or any interest therein is through an
agent( the authority of the latter shall be in
writing7 otherwise( the sale shall be void.
+i*ene( $. R"7ot
Authority to sell need not be in public
instrument. A letter is su0cient.
E. Acce4t"nce
Article 1860. Acceptance of A may be'
e!press
implied from his acts or from his
silence or inaction according to the
circumstances
Article 1861. Acceptance between
persons who are present
1 delivers his power of attorney to
A and the latter receives it without
any ob)ection
Article 1861. Acceptance between
persons who are absent
Acceptance of A cannot be implied
by his silence e!cept when 1
transmits his power of attorney to
the agent( who receives it without
any ob)ection or when 1 entrusts to
him by letter or telegram a power
of attorney with respect to the
business in which he is habitually
engaged as an agent( and he did
not reply to the letter or telegram
Article 186/. 6ays of giving notice of
agency'
8y special information person
informs another that he gave
power of attorney to 3
rd
person( the
latter becomes the agent with
respect to person who received
info.
8y public advertisement person
given power of attorney in
advertisement becomes an agent
with respect to any person
1ower in force until notice is
rescinded in same manner it was
given
R"8'i(" $. 9ille#
A mere authority to a real estate agent 9to
sell: does not carry with it the implied
power to ma.e a contract of sale in behalf
of the principal. ;ourts have generally
construed contracts for the employment of
agents for the sale of land as merely
authori*ing the agent to #nd a purchaser
and submit o,er to the principal and not
empowering him to e!ecute a contract of
sale in behalf of the principal.
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
3ine&" $. CFI o: T"5"7"#
<ovt. is neither estopped by the mista.e or
error on the part of its agents e!cept
through the acts of its o0cers acting w4in
the scope of their authority.
M"c;e $. C"*4#
+ne who clothes another w4 apparent
authority as his agent( and holds him out to
the public as such( cannot be permitted to
deny the authority of such person to act as
his agent to the pre)udice of innocent 3
rd
parties dealing with such person in <=.
F. Co*4en#"tion
Article 1862. Agency is presumed to be
for a compensation( unless there is proof to
the contrary.
A5llon $. Ro*"n C"t!olic Arc!7i#!o4
o: M"nil"
-f the agency relation was to be
compensated but there was no agreed
amount( it must be based on reasonable
value or 5uantum meruit.
3r"t# $. CA
A was not the e0cient procuring cause in
bringing about the sale. 8ased on e5uity(
he is entitled to some compensation based
on his e,orts and e!penses in bringing
about the meeting. (e!ception to the rule
that A must be the 9procuring cause: to be
entitled to compensation)
G. A't!orit5 "n& 3o<er o: A,ent#
Article 1866.
general agency comprises all the
business of the 1
special agency comprises one or
more speci#c transactions
>-?@/ += A<&?%/'
universal agent employed to do
all the acts that the principal may
personally do
general agent employed to
transact all the business of his
principal( or all business of a
particular .ind or in a particular
place or to do all the acts
connected with a particular trade(
business or employment
special or particular agent
authori*ed to act in one or more
speci#c transactions or to do one or
more speci#c acts
Green ="lle5 3o'ltr5 > Allie&
3ro&'ct#, Inc. $. IAC
&ven following the <reen Aalley2s theory
that it is agency contract and not a
contract of sale( they are still liable
because the commission agent cannot( w4o
consent of principal( sell on credit. /hould
he do so( the principal may demand from
him payment in cash.
1. Acts of Administration
Article 1866. Agency couched in general
terms comprise only acts of administration
even if'
even if the principal should state
that he withholds no power or that
the agent may e!ecute such acts
as he may consider appropriate
or even though the agency should
authori*e a general and unlimited
management
2. Acts of /trict @ominion
Article 1868. /pecial power of attorney is
needed otherwise the contract is
unenforceable'
to ma.e such payments as are not
usually considered as acts of
administration
to e,ect novations which put an
end to obligations already in
e!istence at the time the agency
was constituted
to compromise( to submit 5uestions
to arbitration( to renounce the right
to appeal from a )udgment( to
waive ob)ections to the venue of an
action or to abandon a prescription
already ac5uired
to waive any obligation gratuitously
to enter into any contract by which
the ownership of an immovable is
transmitted or ac5uired either
gratuitously or for a valuable
consideration
to ma.e gifts( e!cept customary
ones for charity or those made to
employees in the business
managed by the agent
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
to loan or borrow money( unless
the latter act be urgent and
indispensable for the preservation
of the things which are under
administration
to lease any real property to
another person for more than one
year
to bind the principal to render
some service without
compensation
to bind the principal in a contract of
partnership
to obligate the principal as a
guarantor or surety
to create or convey real rights over
immovable property
to accept or repudiate an
inheritance
to ratify or recogni*e obligations
contracted before the agency
any other act of strict dominion
(ta.e note however of Art. 1B$4 ;;)
Article 186.. /pecial power to sell
e!cludes the power to mortgage7 and a
special power to mortgage does not include
the power to sell.
Article 1880. /pecial power to
compromise does not authori*e submission
to arbitration.
Stron, $. G'tierre( Re4i&e
&!ceptions to the rule that 1 is not bound
by the acts of A beyond his authority'
where 12s acts have contributed to
deceive a 3
rd
person in <=
where the limitations upon the
power created by him could not
have been .nown by a 3
rd
person
where he has placed in the hands
of the agent instruments signed by
him in blan.
Go8'iol"5 $. S5ci4
A sale by a managing partner of real
properties of the partnership to pay its
obligation w4o the consent of other
partners is invalid as it is beyond his
authority( as the transaction is not for the
purpose of promoting the ob)ect of the
partnership.
D'n,o $. 9o4en"
Absence of a /1A does not render the
compromise agreement void. -t is merely
unenforceable.
Ro&ri,'e( $. CA
?o. 5 of Art 1B$B (;;) refers only to
immovables. -t refers to sales made by an
A for a 1 and not to sales made by owner
personally to another( 6+? that owner be
acting personally or through a
representative.
)o&,e# $. S"l"#
%he power to borrow money cannot be
interpreted as also authori*ing the agent to
use the money as he pleases.
=icente $. Ger"l&e(
Cati#cation by a corporation cannot be
made by the same person who wrongfully
assumed the power to ma.e the contract.
icol S"$in,# $. CA
/ale proscribed by a /1A to mortgage
under Art. 1B$D (;;) is a voluntary and
independent contract and not an auction
sale resulting from an e!tra)udicial
foreclosure precipitated by default of the
mortgagor.
3N $. A,'&elo
&!ception to the rule that A acting in his
own name does not bind 1 is hen contract
involves things belonging to 1. &!ception is
necessary for the protection of 3
rd
persons
against collusion between 1 and A. (see
Art. 1BB3 ;;) -n such a case( 1 may
recover from 3
rd
persons.
). A,ent Actin, ?it!in Sco4e o:
A't!orit5
1. 6hen principal bound by acts of
agent
Agent acts within scope of
authority
Agent acts in behalf of principal
Article 1881. %he limits of the agentEs
authority shall not be considered e!ceeded
should it have been performed in a manner
more advantageous to the principal than
that speci#ed by him
Article 188/. -f an agent acts in his own
name( the principal has no right of action
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
against the persons with whom the agent
has contracted7 neither have such persons
against the principal.
-n such case the agent is the one
directly bound in favor of the person with
whom he has contracted( as if the
transaction were his own( e!cept when the
contract involves things belonging to the
principal.
%he provisions of this article shall
be understood to be without pre)udice to
the actions between the principal and
agent.
3I $. &e Co#ter
%he power and duties of A are con#ned in
his written power of attorney( which
limitation is a notice to and is binding upon
the person dealing w4 A.
=elo#o $. Ur7"no
&very person dealing w4 an A is put upon
in5uiry and must discover upon his peril( if
he would hold 1 liable( not only the fact of
the agency but the nature and e!tent of
authority of A.
"5 =ie< )otel $. Ker "n& Co.
Admissions secured by A acting w4in his
scope of authority favors 1 and may be
given in evidence against such party.
An, $. F'lton Fire In#'r"nce
6hen 1 is bound by the acts of A( action
must be brought against 1 not A. 8ringing
of Action against A cannot have any legal
e,ect e!cept that of notifying A of the
claim.
T"n Tion, To; $. SEC
A did not e!ceed authority when he sold
the car for a greater price than that
speci#ed by 1.
M"ci"# $. ?"rner "rne# > Co.
A is not liable when the principal is
disclosed (i.e. at the time of the transaction
by A( 3
rd
person has .nown he is acting for
a 1 and of 12s identity.)
S*it! ell > Co. $. Sotelo M"tti
Agent is the one directly liable to the
person he has contracted if he acts in his
own name. ?o representation results.
e"'*ont $. 3rieto
3
rd
persons have a right of action against 1
and A when the rights and obligations
which are the sub)ect matter of litigation
cannot be determined without hearing both
of them.
Ai$"& $. Fil*" Merc"ntile Co.
+ld rule' 1 cannot recover full amount
from 3d persons but only against A.
?ew rule' 1 may recover against 3
rd
persons using e!ception. (Art. 1BB3 ;;)
3!ili44ine S',"r E#t"te# De$elo4*ent
Co. $. 3oi("t
%he wife gave the husband a power of
attorney to mortgage property 9in her
name( place and stead.: -n order that the
mortgage e!ecuted by the husband
involving the wife2s paraphernal property
be binding on the wife( it must be signed
by the wife or by her husband as agent or
attorney in fact for his wife.
II. O9IGATIONS OF T)E AGENT
A. O7li,"tion# o: t!e A,ent
1. carry out the agency which he has
accepted (Article 188-)
2. to answer for damages which
through his performance the
principal may su,er (Article 188-)
3. to #nish business already begun on
the death of the principal should
delay entail any danger (Article
188-)
4. to observe the diligence of a good
father of a family in the custody
and preservation of the goods
forwarded to him by the owner in
case he declines an agency( until
an agent is appointed (Article
1882)
5. to advance the necessary funds
should there be a stipulation to do
so (Article 1886)
". to act in accordance with the
instructions of the principal( and in
default thereof( to do all that a
good father of a family would do
(Article 1886)
$. not to carry out the agency if its
e!ecution would manifestly result
in loss or damage to the principal
(Article 1888)
B. to answer for damages if there
being a conFict between his
interests and those of the principal(
he should prefer hi own (Article
188.)
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
D. not to loan to himself if he has
been authori*ed to lend money at
interest (Article 18.0)
A can lend money to 1 but A
cannot borrow money from 1
1G. to render an account of his
transactions and to deliver to the
principal whatever he may has
received by virtue of the agency
(Article 18.1)
he must account for any
amount received by virtue of
agency even if not owing to
principal
stipulations e!empting the
agent from obligation to
account is void
11. to be responsible for the acts of the
substitute'
when he was not given the
power to appoint one7
when he was given such power(
but without designating the
person( and the person
appointed was notoriously
incompetent or insolvent
(Article 18.1)
12. to distinguish goods by
countermar.s and designate the
merchandise respectively
belonging to each principal( in the
case of a commission agent who
handles the goods of the same .ind
and mar.( which belong to di,erent
owners (Article 1.0-)
13. to pay interest on funds he has
applied to his on use (Article
18.6)
14. to inform the principal( where an
authori*ed sale of credit has been
made( of such sale (Article 1.06)
15. to bear the ris. of collection( should
he receive also on sale( a
guarantee commission (Article
1.06)
1". to indemnify the principal for
damages for his failure to collect
the credits of his principal at the
time that they become due
(Article 1.08)
1$. to be responsible for fraud or
negligence (Article 1.0.)
Do*in,o $. Do*in,o
An agent who ta.es a secret pro#t( w4o
revealing the same to his principal is guilty
of a breach of his loyalty and forfeits his
right to collect commission even if the
principal does not su,er in)ury.
Se$erino $. Se$erino
Celations of an agent to his principal are
#duciary and in regard to property forming
the sub)ect matter of the agency( he is
estopped from ac5uiring or asserting a title
adverse to that of the principal.
G'tierre( )er*"no# $. Ori" )er*"no#
6hen an agent( in e!ecuting the orders of
1( carries out the instructions and does not
e!ceed his authority( or act negligently or
fraudulently( he cannot be held responsible
for the failure of 1 to accomplish the ob)ect
of the agency.
9in"n $. 3'no
-n the absence of speci#c instructions of 1(
A shall do all that a good father of a family
would do as re5uired by the nature of the
business. -f A acts in good faith and w4 due
care( he is not liable for losses due to errors
or mista.es regarding matters of discretion.
1resumption is that A acted in good faith.
3N $. R","*"#4"&
Agent2s negligence is disobedience of
instructions( which is in e,ect an act
beyond their authority.
O@in"," $. E#t"te o: 3ere(
&ven if 1 agreed to a de#cient accounting
or is not in)ured by the intervention of A for
his own pro#t( A still has the obligation to
return the full amount.
Monteli7"no $. "colo& M'rci" Millin,
-f there is commingling w4o authority and
there is necessity to separate( the mi!ture
must be divided in proportion to amounts
which the owner4s possessed before
commingling.
Metro4olit"n "n; $. CA
H8%; was negligent in giving the
impression that treasury warrants had been
cleared and that it as safe to allow < to
withdraw. H8 as agent is liable as it made
1 believe that the warrants were cleared.
Intern"tion"l Fil*# $. 95ric Fil*
E%c!"n,e
=ailure of subIagent w4 whom #lm has been
left for safe.eeping to insure against loss
by #re does not constitute negligence or
fraud on its part when it received no
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
instruction to that e,ect from its principal.
%he insurance of the #lm is not part of its
obligation impose by law.
C"#e "n& )"ni( $. +',o "n& Cr'(
%he principle that the fault of an agent is
imputable to his principal( is applicable to
cases where actual damage has been
su,ered. -t should not apply to cases
where the fault consists of purely technical
harmless nonIobservance of a rule of
procedure which has not in)ured or misled
anyone or deprived the court of its
)urisdiction.
. 9i"7ilit5 o: 1 or More A,ent#
Article 18.-. Cesponsibility of two or
more agents( even if appointed
simultaneously( is not solidary( unless
stipulated.

Article 18.2. -f solidarity has been
agreed upon( each of the agents is
responsible
for the nonIful#llment of agency
for the fault or negligence of his
fellows agents e!cept when they
acted beyond scope of authority
M'nici4"l Co'ncil o: Iloilo $.
E$"n,eli#t"
6hen 1 appoints 2 or more attorneysIinI
fact independently( the consent of one will
not be re5uired to validate the acts of the
other unless that appears to be 12s
intention.
C. 9i"7ilit5 o: A,ent# to /
r&
3er#on#
Article 18.6. Agent who acts as such is
not personally liable to 3
rd
party unless'
e!pressly binds himself or
e!ceeds the limits of his authority
without giving 3
rd
party notice of
his powers
Article 18.8. ;ontract with 3
rd
person is
void( if'
agent contracts in the name of the
principal
e!ceeds scope of authority
principal does not ratify the
contract
3
rd
party is aware of the limits of
the powers granted by the principal
however( agent is liable if he
undertoo. to secure the principalEs
rati#cation
Article 18... -f a duly authori*ed 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.
Article 1.00. As to 3
rd
persons( act is
deemed w4in scope of authority( if w4in
terms of power of attorney even if contrary
to private understanding between 1 and A.
Article 1.01. 3
rd
persons cannot set up
the fact that the A has e!ceeded his
powers( if 1 has rati#ed( or has signi#ed his
willingness to ratify the AEs acts.
Article 1.01. 3
rd
persons are e!pected to
in5uire into the authority of A
A 3
rd
person with may re5uire the
presentation of the power of
attorney( or the instructions as
regards the agency
1rivate or secret orders and
instructions of the principal do not
pre)udice third persons who have
relied upon the power of attorney
or instructions shown them
N"4ocor $. N"tion"l Merc!"n&i#in,
Cor4or"tion
A is liable on the contract of sale which was
e!pressly repudiated by 1 because A
e!ceeded his authority and acted in his
own name. ?H; became the 1 on the
performance bond and thus the contract
can be enforced against it.
3!il. 3ro&'ct# $. 3ri*"teri" Societe
Anon5*e
3
rd
persons cannot recover from both 1 and
A as he has already been given )udgment
against 1 for the whole amount. Art. 1BD$
(;;) does not hold that both A and 1 are
liable to the contracting party in case of
e!cess authority.
D3 $. CA
%he liability of A who e!ceeds his power
depends upon 6+? 3
rd
person is aware of
the limits of his power. -f A gave su0cient
notice of his powers to 3
rd
person dealing
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
w4 him and the latter still contracted w4
him( neither 1 or A is bound because as to
1 it is unauthori*ed and as to A because of
his good faith.
Keeler Electric $. Ro&ri,'e(
1ersons dealing with agents must not only
ascertain e!istence of conditions but also
be able to trace the source of his reliance
to some word or act of 1 himself if 1 is to
be held liable. A alone cannot enlarge or
e!tend authority by his own acts or
statements( nor remove limitations or
waive conditions imposed by 1.
D. Co**i##ion A,ent#
Article 1.0/. ;ommission agent shall be
responsible for the goods received by him
in the terms and conditions and as
described in the consignment( unless upon
receiving them he should ma.e a written
statement of the damage and deterioration
su,ered by the same.
Article 1.02. ;ommission agent cannot(
w4o consent of the principal( sell on credit.
-f he does( 1 may demand payment in cash
but he is entitled to any bene#t resulting
from the sale.
Article 1.06. -f the commission agent(
with consent( sells on credit( he must'
so inform the principal
with a statement of the names of
the buyers
if he doesn2t( it is deemed to have
been made for cash insofar as the
principal is concerned
Article 1.06. /hould the commission
agent receive on a sale( in addition to the
ordinary commission( another called a
guarantee commission( he shall bear the
ris. of collection and shall pay the principal
the proceeds of the sale on the same terms
agreed upon with the purchaser.
Article 1.08. %he commission agent who
does not collect the credits when they
become due and demandable shall be
liable for damages( unless he proves that
he e!ercised due diligences.
III. O9IGATIONS OF T)E
3RINCI3A9
A. O7li,"tion# o: t!e 3rinci4"l
1. to comply w4 obligations contracted
by the agent in 12s name and w4in
scope of authority
2. to advance to agent sums
necessary for the e!ecution of the
agency( if A re5uests (Article
1.11)
3. to reimburse A for advances(
e!cept when (Article 1.11)'
A contravened 12s instructions
(unless 1 avails of bene#ts)
e!penses due to A2s fault
if A incurred them .nowing that
an unfavorable result will
ensue( if 1 is unaware
when stipulated that A will bear
e!penses or e!penses will only
amount to a certain sum
4. to indemnify A for damages caused
by the e!ecution of the agency
provided A is free from fault or
negligence (Article 1.1/)
agent has right of retention
until he is reimbursed
5. to pay compensation if agreed
upon
Go&'co $. CA
-n a sale of real property where a
commission is payable to A( it is the owner
and not the buyer who must pay.
3r"tt# $. CA
6here it appears that o,er of owner to sell
his land was formally accepted by buyer
after authority of bro.er had e!pired and
bro.er was not the e0cient procuring
cause in bringing about the sale( the court
granted in e5uity to the bro.er a sum of
money by way of compensation for his
e,orts and assistance in the transaction.
. R"tifc"tion
1 is not bound by acts of A beyond
scope of authority e!cept when he
rati#es it e!pressly or tacitly
1. ;onditions for rati#cation
1 must have capacity and
power to ratify
1 must have .nowledge of
material facts
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
1 must ratify the acts in its
entirety
act must be capable of
rati#cation
act must be done in behalf of
principal
2. Cetroactive e,ect of rati#cation'
<enerally( rati#cation will have a
retroactive e,ect( e!cept
where to do so would be to
defeat the rights of 3
rd
parties
w4c have accrued between the
time of the ma.ing of the
unauthori*ed contract and the
time of rati#cation
where to do so would be to
render wrongful an otherwise
rightful act done between the
ma.ing of the unauthori*ed
contract and the time of its
rati#cation
where to do so would be to
allow the circumvention of a
rule of law formulated in the
interest of public policy
if the 3
rd
party has withdrawn
from the contract and the act
can no longer be rati#ed
C. Do'7le Contr"ct#
one with 1 and one with A
that of prior date is to be preferred(
sub)ect to Art. 1544 (provision on
double sales)
if A acted in good faith' 1 is liable
for damages to 3
rd
person whose
contract must be re)ected
if A acted in bad faith' A alone is
liable
I=. EATINGUIS)MENT OF T)E
AGENCY
A. Re$oc"tion
notice of revocation must be given
to the agent
revocation generally ta.es e,ect on
date of such notice
may be terminated at will when
there is no #!ed time for the
agency
when agency cannot be revo.ed'
o if a bilateral contract depends
on it
o if it is a means of ful#lling an
obligation already contracted
o if a partner is appointed
manager in the contract of
partnership and his removal
from management is un)usti#ed
. A,entB# ?it!&r"<"l
must give notice to 1
should indemnify 1 for damages
resulting from withdrawal unless
based on grave detriment to A
must continue to protect 12s
interest in the interim
C. De"t!, Ci$il Inter&iction, In#"nit5
or In#ol$enc5 o: 3rinci4"l or A,ent
generally( agency is e!tinguished
by death of principal( e!cept'
o when agency is coupled with
an interest (i.e. if agency
constituted in the common
interest of the 1 or A( or in the
interest of a 3
rd
person who has
accepted the stipulation in his
favor)
o when the agent( unaware of
the death of 1( enters into a
contract in behalf of his
principal w4 a 3
rd
person who is
also unaware of the death of 1
D. Di##ol'tion o: fr* or cor4or"tion
<Cc entr'#te& or "cce4te& t!e
",enc5
E. Acco*4li#!*ent o: o7@ect or
4'r4o#e
F. E%4ir"tion o: t!e 4erio&
De 9" 3en" $. )i&"l,o
%he agent and administrator who was
obliged to leave his charge for a legit cause
and who duly informed his principal is
released from conse5uences of
management of the person who substituted
him with the tacit consent of his principal.
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-
CMS 9o,,in, Inc. $. CA
%he principal may revo.e a contract of
agency at will( and such revocation may be
e!press( or implied( and may be availed of
even if the period #!ed in the contract of
agency as not yet e!pired. As the principal
has this absolute right to revo.e the
agency( the agent can not ob)ect thereto7
neither may he claim damages arising from
such revocation( unless it is shown that
such was done in order to evade the
payment of agentEs commission.
D"non $. ri*o
6here no time for the continuance of the
agency is #!ed by its terms( 1 is at liberty
to terminate it at will sub)ect only to the
re5uirements of good faith.
G"rci" $. De M"n("no
%here is no implied revocation where the
appointment of another agent is not
compatible with the continuation of a li.e
authority in the 1
st
agent( or the 1
st
agent is
not given notice of the appointment of the
new agent.
D5 'cio > Co. $. On, G'"n C"n
%he ma.ing and accepting of a new power
of attorney( 6+? it enlarges or decreases
the power of the agent under a prior power
of attorney( must be held to supplant and
revo.e the latter when the 2 are
inconsistent.
Ne< M"nil" 9'*7er $. Re4'7lic
An irrevocable power of attorney is
obligatory only on the principal who
e!ecuted the agency. -t cannot a,ect one
who is not a party thereto.
R"llo# $. Y"n,co
1arties given special or personal notice of
its revocation or termination by the
principal. +therwise( 1 is liable to the 3
rd
person.
Coleon,co $. Cl"4"rol#
A power of attorney can be made
irrevocable by contract only in the sense
that 1 may not recall it at his pleasure7 but
coupled with interest or not( the authority
certainly can be revo.ed for a )ust cause(
such as when the agent betrays the
interest of the principal.
R"*o# $. C"oi7e#
6here an agent ma.es use of his power of
attorney after the death of his principal( the
agent has the obligation to deliver the
amount collected by him by virtue of said
power to the administratri! of the estate of
the principal.
Terr"&o $. CA
%he rights and obligations of the agent
arising from the contract of agency are not
transmissible to his heirs since the agency
contract is personal in nature.
A5llon $. Ro*"n C"t!olic i#!o4
%he relation e!isting between parties had
its origin in a special contract. 6hen both
parties by tacit consent( after the
e!piration of the period #!ed in the
contract( continued the relationship
substantially as it had e!isted under the
contract( their respective obligations must
be measured by that contract.
Excellence. U3 "rO4#
100-
Not just a tradition. Its a commitment.
A,enc5 O'tline 100-