Art.

1872- 1877
 Art. 1872 - between persons who are absent , acceptance can be
implied from the silence of the agent when:

 1. the principal transmits hid power of attorney to the agent,

without any objection;

 2. entrust 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.
Illustration:

Haruru had a horse deposited with Justine. One day Haruru asked a friend, Asnor, if
Asnor would take the horse from Justine and sell it for him (Haruru)—If Haruru would write
him (Asnor) a letter to that effect. Asnor answered “yes”. Subsequently Haruru wrote Asnor to
get the horse from Justine and to sell it. Asnor did not answer, but proceeded to get the horse,
and was subsequently able to sell it.

Issue: Did Asnor act as Haruru’s agent?

Held:
Yes, for the acceptance of the agency could clearly be inferred from his acts.
 Article 1873. 

If a person specially informs another or states by public advertisement that he has given a
power of attorney to a third person, the latter thereby becomes a duly authorized agent, in the
former case with respect to the person who received the special information, and in the latter
case with regard to any person.

The power shall continue to be in full force until the notice is rescinded in the same manner
in which it was given.
 Two Ways of informing the Existence of the Agency

1. Special information
2. Public advertisement
Agency by ESTOPPEL

If A leads B to believe that C is his (A’s) agent, when as a matter of fact such is not true, and
B acts on such misrepresentation, A cannot disclaim liability, for he has created an agency by
estoppel.

From Macke et. Al v. Camps

“One who clothes another with 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 prejudice of innocent third parties dealing with such person in good faith, and in the honest
belief that he is what he appears to be”
Article 1874. When a sale of a piece of land or any interest therein is
through an agent, the authority of the latter shall be in writing;
otherwise, the sale shall be void.
Illustration:

A brother wrote his sister to sell his parcels of land. The land were purchased by a third
person, but the sister did not forward the money. The brother now wants to recover the parcel of
lands.

Held:
Since the agency was in writing, the sale id VALID, hence the lands cannot be recovered.
The letter was sufficient authority.
Article 1875. Agency is presumed to be for a compensation, unless there is proof to
the contrary
 The Agency is presumed to be onerous
 Compensation may be in the form of gratuitous use by the agent of the principal’s real
estate.
Illustration:

Fiege and Brown acted as the agents of Smith, Bell and Co., for the sale of the machinery. It was
agreed that the agents were to receive one-half of the profits derived from the sale of the machines.
They were able to sell the goods, and as soon as the customers’ contracts were signed, the agents
demanded their 50% fee, although the buyers had not yet paid for the machines.
ISSUE:
were they entitled to their share as soon as the properties were sold?

HELD: No, because the machines had not yet been paid for.
Article 1876. An agency is either general or special.

The former comprises all the business of the principal. The latter, one
or more specific transactions.
 The distinction here depends on the EXTENT of the business covered.

Illustration:

Absent substantial evidence to show a special agent’s authority from his

principal to give consent to the creation of a tenancy relationship, can the
former’s action give rise to an implied tenancy?

Answer: No. (Dionisia L. Reyes v. Ricardo L. Reyes et. al.)

Article 1877. An agency couched in general terms comprises only acts of
administration, even if the principal should state that he withholds no power
or that the agent may execute such acts as he may consider appropriate, or
even though the agency should authorize a general and unlimited
management.
According to the POWER or AUTHORITY conferred, the agency
may be:

 Couched in general terms

 Or couched in specific terms
GENERAL AGENCY and SPECIAL AGENCY may be:

 Couched in general terms;

 Or couched in specific terms
Illustration:

Elsa made Ana her agent in this manner:

“I make you my agent for all the properties. I withhold no power from you. You may
execute such acts as you may consider appropriate. You are hereby given by the general and
unlimited management.”

Question

a. May Ana compromise in behalf of Elsa?

Ans: NO
b. May Ana accept or repudiate an inheritance for Elsa?
Ans. No
c. May Ana sell or mortgage Elsa’s Land?
Ans. : NO

REASON:
for these are acts are not mere acts of administration
Examples of ACTS OF MERE ADMINISTRATION:

a. To sue for the collection of debts;

b. To employ workers or servants and employees needed for the conduct of a
business;
c. To engage counsel to preserve the ownership and possession of the principal’s
property;
d. To lease real property to another person for one year or less, provided the lease
is NOT registered;
e. To make customary gifts for charity or to employees in the business managed
by the agent;
f. To borrow money if it be urgent and indispensable for the preservation of the
things under it.