Professional Documents
Culture Documents
Agency 1894-97
Agency 1894-97
1894
GR: The responsibility of two or more agents even though they have been appointed
simultaneously, is not solidary but
JOINT.
EXCPTN: If solidarity has been expressly stipulated, liability is SOLIDARY.
Joint Agents agents appointed by one or more principals under such circumstances as to
induce the inference that it was the principals intent that all should act in conjunction in
consummating the transaction for which they were appointed.
Private Joint Agency the agency cannot be exercised except by the concurrence of
all agents
Public Joint Agency the agency may be exercised by a majority.
Several Agents each one to act separately in a particular branch of his principals business or
in a particular locality.
Art. 1895:
GR: each of the agents is responsible for the non-fulfillment of the agency, and for the fault or
negligence of his fellow agents when SOLIDARITY has been agreed upon.
EXCPTN: In the latter case, when the fellow agents acted beyond the scope of their authority.
Joint Obligation each debtor is liable only for proportionate part of the debt.
Solidary Obligation each debtor is liable for the entire obligation.
Innocent agent has a right later on to recover from guilty or negligent agent.
Art. 1896
The agent who converted to his personal use the funds of the principal is LIABLE FOR
INTEREST by way of compensation or indemnity which shall be computed from the day on
which he did so.
(w/o prejudice to criminal action)
The agent who is found to owe the principal sums after the extinguishment of the agency
is liable for interest from the date the agency is extinguished.
Demand is not necessary for DELAY to exist.
Art. 1897
The agent is liable to third persons for his torts which result in an injury to the third
person.
A purported agent will be held personally liable as a principal on a contract executed w/o
authority if the contract contains apt words to bind him personally.
If the TORT is committed by the agent within scope of his authority, both the principal and
the agent are liable.
An Agency is liable to third persons for injury resulting from their misfeasance and
malfeasance.
But and Agent is generally not responsible to third persons for nonfeasance.
When the agent expressly binds himself, he thereby obligates himself personally and by
his own acts.
When the agent exceeds his authority, he really acts without authority and therefore, the
contract is unenforceable against the principal unless the latter RATIFIES the act.
When an agent by his act prevents performance on the part of the principal, he can be
held liable to third persons.
When a person acts as an agent without authority or without principal, he himself
regarded as principal, possessed of all rights and subject to all liabilities of a principal.
A person who purports to act as agent of an incapacitated principal also incurs personal
liability unless the third party was aware of the incapacity at the time of making of the
contract.