PRIMA, RIZELLE R.

BSA2-A

Art 1919-1932

1. Can a principal revoke a contract of agency at will? Explain.

Contract of agency is revocable at the will of the principal. Since the
relationship of agency is one that is based on trust, there may arise
circumstances where the principal's trust no longer subsists or is lost and
as a result, the principal may revoke the contract of agency. Principal has
this absolute right to revoke the agency. However, the agency cannot be
revoked at the will of the principal when a bilateral contract depends on
the agency, when the agency is the means of fulfilling an obligation
already contracted, and in the case of a partner appointed manager in the
contract of partnership and his removal from the management is
unjustifiable.

2. How about the agent, can he revoke the contract of agency at will?
An agent cannot revoke the contract of agency at will, but he may
renounce or withdraw from the agency by notifying the principal that he
will no longer act as the principal's agent.

3. Give an example of an implied revocation of a contract of agency.

An example of an implied revocation of a contract is when the
principal directly manages the business entrusted to the agent, dealing
directly with the third persons. For example, P appointed A as its agent
for the sale of its furniture products to Korean Companies, but during the
existence of the contract of agency, P directly sold its furniture products
to some Korean Companies. This act of P created an implied revocation of
the contract of agency.
4. What is the effect, if any, of the death of the principal in a contract
of agency?
Agency is extinguisehed by the death of the principal BUT it shall
not be extinguished and shall remain in full force if the agency has been
constituted in the common interest of the principal, or in the interest of a
third person who has accpeted the stipulation in his favor.