Arlene Canyownes Phrase “for or on our behalf” does not

JD 2 necessarily establish an agency. What is

AGENCY decisive is the intention of the parties.
NATURE, OBJECTIVE AND KINDS OF AGENCIES CONTRACT OF AGENCY is the ability, by
legal fiction, to extend the personality of the
Chapter 1
principal through its agent , but only effected with
Video Lecture No. 1 (September 6, 2022) the consent of the principal. The purpose is to
DEFINITION OF OBJECTIVES AND AGENCIES extend the personality of the principal, therefore,
Art. 1317 No one may contract in the name of dili na need ug personal confirmation sa principal to
another without being authorized by the latter, or the third parties. {doles vs. angeles}
Agency is basically personal representative, and
unless he has by law a right to represent him.
derivative in nature. The authority of the agent to act
Review: emanates from the powers granted to him by his principal; his
WHAT EFFECT UNLESS RATIFIED BY WHO? act is the act of the principal if done within the scope of the
authority. Qui facit per alium facit se. "He who acts through
A contract entered into in the Unenforc Unless By the person on another acts himself"
name of another by one who
has no authority or legal eable ratified whose behalf it has
representation, or who has (expressly been executed, AGENCY TRUST
acted beyond his powers
or before it is revoked
impliedly) Agents usually hold no title at all. Trustee may hold legal title to the
property

Usually, agent acts in the name of The trustee may act in his own name
the principal

ARTICLE 1868. By the contract of Usually, agent may be terminated

or revoked at any time
The trustee is usually ended by the
accomplishment of the purpose for
which it was formed
agency a person binds himself to render
Agency may not be connected at Trusts involves control over
all with property property
some service or to do something in
Agent has authority to make Trustee does not necessarily or
representation or on behalf of another, with contracts which will be binding on
his principal
even possess such authority to blind
the trustor of the cestui que trust
the consent or authority of the latter.
Agency is really a controlled A trust may be the result of the
contractual relation. contract or not, it may be created
(MEMORIZE) also by law.
 NO LEGAL CAPACITY TO
CONTRACT (Agent) - if
incapacitated agent entered
Kind of Contract: into contract with a third
It is a preparatory contract. It is a contract entered not party
VALID (agent’s incapacitated is irrelevant,
the contract having been entered into, for
and on behalf of the principal, who has full
legal capacity.)

for its own end but to be able to enter into other contracts.
Parties to a contract of agency
● Principal- The person represented (mandante) ELEMENT OF SUBJECT MATTER
● Agent- The person who acts for in representation of
OBJECT OF SERVICE THE EXECUTION OF A
another (mandatario) CONTRACT JURIDICAL ACT IN RELATION
○ Another term: attorney in fact, proxy, delegate TO A THIRD PERSON
or representative.
The essential elements of agency are:
ELEMENT OF CONSIDERATION (COMMISSION)
C (1) there is consent, express or implied of the
CAUSE COMPENS ARTICLE 1875. Agency is
parties to establish the relationship; OR ATION presumed to be for
CONSIDERATION compensation, unless there
O (2) the object is the execution of a juridical is proof to the contrary.
act in relation to a third person;
A.R (3) the agents acts as a representative and
CHARACTERISTICS
not for himself, and
perfected by mere consent; no
Consensual nspecific form
A.S (4) the agent acts within the scope of his
Nominate It has its own name.
authority.
Does not depend on another
Principal contract for its existence and
Element of Consent validity.

NO AUTHORITY OR UNENFORCEABLE Preparatory Entered into as a mean to an end

LEGAL
REPRESENTATION
Unilateral if contract is gratuitous, it
creates obligations for only one
NO LEGAL CAPACITY TO VOIDABLE (By reason of vitiated consent, of the parties, i.e. agent
CONTRACT (principal) therefore valid until annulled)

For compensation, it gives rise

Bilateral to reciprocal rights and
obligations.
 Generally Onerous Art. 1875 BASIS 1871 1872

Fiduciary as it is based on trust and Condition of Both the principal Both the principal
confidence
creation and agent are and agent are
Representative Relation not a personal one in relation to present absent
third person
Manner of delivery The Power of The Power of
attorney Attorney is not
Review ispersonally personally
Can agency be presumed? delivered by the delivered.There is
principal to the transmission by
Generally NO. Because the relationship between the agent messenger, letter or
principal and agent must exist as a fact. The only telephone

exceptions to this rule are when agency arises by

operation of law or agency is presumed to prevent The basis of agency is representation. The strongest
unjust enrichment. feature of a true contract of agency is “control”- that the agent
Form: is under control and instruction of the principal.
There is generally no agency in the absence of such
Generally NO formal requirements. Agent’s intent:
authority may be oral or written; it may be in public
or private writings. The only exception is when the On the part of the principal There must be an actual
Intention to appoint from his
law requires a specific form (e.g. sale of real
words or actions.
property or any interest therein by an agent.)
Basis On the part of the agent There must be an intention to
accept the appointment and
act on it.

Distinguishing Features:
1.) Representative character; and
2.) Derivative authority.
Purpose:
To extend the personality of the principal through the facility of
the agent (constructive representation)
Art. 1897. The agent who acts as such is not personally
liable to the party with whom he contracts, unless he
expressly binds himself or exceeds the limits of his
authority without giving such party sufficient notice of his
powers. (memorize)