Part II

Chapter I
General and Special
Agencies
Meaning of Agency
• Article 1868, Civil Code.
• By the contract of agency a person binds himself
to render some service or to do something in
representation or on behalf of another, with the
consent or authority of the latter. (1709a)
• Agency is important because it enables a man to
increase the range of his individual and corporate
activity by enabling him to be constructively present in
many places and to carry on diverse activities at the
same time.
ACCORDING TO THE POWER OF AUTHORITY
CONFERRED THE AGENCY MAY BE:
• COUCHED IN GENERAL TERMS
Article 1877, Civil Code.
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. (n)
• COUCHED IN SPECIFIC TERMS
Article 1878, Civil Code.
“Special powers of attorney are necessary in the following cases:
(1) To make such payments as are not usually considered as acts
of administration;

(2) To effect novations which put an end to obligations already

in existence at the time the agency was constituted;
(3) To compromise, to submit questions to arbitration, to
renounce the right to appeal from a judgment, to waive
objections to the venue of an action or to abandon a prescription
already acquired;

(4) To waive any obligation gratuitously;

(5) To enter into any contract by which the ownership of an

immovable is transmitted or acquired either gratuitously or
for a valuable consideration;
(6) To make gifts, except customary ones for charity or those
made to employees in the business managed by the
agent;
(7) To loan or borrow money, unless the latter act be urgent and
indispensable for the preservation of the things which
are under administration;
(8) To lease any real property to another person for more than
one year;
(9) To bind the principal to render some service without
compensation;
(10) To bind the principal in a contract of partnership;
(11) To obligate the principal as a guarantor or surety;
(12) To create or convey real rights over immovable property;
(13) To accept or repudiate an inheritance;
(14) To ratify or recognize obligations contracted before the
agency;
(15) Any other act of strict dominion”
REPUBLIC OF THE PHILIPPINES )
___________ CITY )

GENERAL POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS:

I, _______________________, of legal age, single and residing at 888 West Drive

Street, New York City, U.S.A., do hereby name constitute and appoint
_______________________________, Filipino, of legal age, single and residing at 200
Bonifacio Street, New Lopez Village, Paranaque City to be my true and lawful attorney-
in-fact, and for and in my name and on my behalf, to do and perform the following act and
things, to wit:

1. To exercise general control and supervision over my 20-door apartment in Dr. A.

Sucat Road, Paranaque City, and to act as my attorney-in-fact, with full authority to manage
my said apartments, to demand, collect and receive all the rentals of my tenants which are
due and demanded every end of the month or at in any other date specified in our contract
of lease; to deposit the same in Philippine National Bank, Sucat Road in my name and for
my account; to maintain my said apartments properly with the diligence of a good father
of a family and to do all other acts and things which are necessary to keep my said
properties in good order or condition.

GIVING AND GRANTING, unto my said attorney-in-fact, full power and

authority to do and perform all and every act and things whatsoever requisite and necessary
to be done in and about the premises, hereby ratifying and confirming all that my attorney-
in-fact shall lawfully do or cause to be done by virtue of these presents.

lN WITNESS WHEREOF, I have hereunto set my hand this _________ day of

August 202_, at _______City.

FULL NAME AND SIGNATURE.

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

__________City )

BEFORE ME, this _______ day of MONTH YEAR in _______ City personally
appeared ______________________ with TIN _______________ and
______________________ with competent identity
___________________________________, known to me and to me known to be the same
persons who executed the foregoing instrument consisting of one (1) page whereon this
acknowledgment is written and they acknowledged to me that the same is their free
voluntary act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affix my notarial seal
at the place and date first above written

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• Note that although the said General Power of Attorney does not
specifically state all the acts of administration that B can do in
the absence of A, it is understood that the following are acts of
administration:
1. To conduct inspection of the said property from time to time to find
out if there are things or matters to attend to, to see to it that the
properties are well maintained to satisfy the tenant.
2. To collect the rentals due and demandable, and in case of non-
payment, to demand payment of the same, and if the tenant still fails
and refuses to pay, he can send a formal letter of demand to pursue
request for collection of unpaid rentals.
3. To refer the matter to the principal and to obtain the latter’s
instruction on what he will do if the tenant continues to fail or refuse to
pay the unpaid rentals.
4. To communicate with A from time to time to keep him informed
about the latest developments.
5. To file a complaint for collection or unlawful detainer, as the case
may be, upon consulting A and when the latter instructs him to do so.

However, B cannot sell the 20-door apartment to anyone without a

Special Power of Attorney, on account of the provision of Article 1878.
That power requires Special Power of Attorney.
REPUBLIC OF THE PHILIPPINES )
___________ CITY )

SPECIAL POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS:

I, A, Filipino, of legal age, single/married and presently residing at ____________,

do hereby name constitute and appoint B, Filipino, of legal age, single/married and
residing at ______________________ to be my true and lawful attorney-in-fact, and for
and in my name, place and stead, to do and perform the following act and things, to wit:

“To sell my 20-door apartment at No. 130 Sucat Road, Paranaque City, for an
amount not lower than Twent Million Pesos (P20,000,000.00), provided that I shall be
entitled to receive the said amount NET of all the taxes, capital gains and all expenses of
transfer to the buyer, and provided that the said amount shall be deposited by B to my
account in Philippine National Bank, Sucat Road, and upon depositing the same, I shall
remit to you Two Million Pesos (2,000,000.00) representing our agreed commission to you
and as compensation to you for your services and assistance in facilitating the sale of my
property.”

GIVING AND GRANTING, unto my said attorney-in-fact, full power and

authority to do and perform all and every act and things whatsoever requisite and necessary
to be done in and about the premises, hereby ratifying and confirming all that my attorney-
in-fact shall lawfully do or cause to be done by virtue of these presents.

lN WITNESS WHEREOF, I have hereunto set my hand this _________ day of

August 202_, at _______City.

FULL NAME AND SIGNATURE.

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

__________City )

BEFORE ME, this _______ day of MONTH YEAR in _______ City personally
appeared ______________________ with TIN _______________ and
______________________ with competent identity
___________________________________, known to me and to me known to be the same
persons who executed the foregoing instrument consisting of one (1) page whereon this
acknowledgment is written and they acknowledged to me that the same is their free
voluntary act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affix my notarial seal
at the place and date first above written

Doc. No.
Page No.
Book No.
Series of 202_
AGENCY COUCHED IN GENERAL TERMS
- This comprises only acts of administration

AGENCY COUCHED IN SPECIAL TERMS

- A clear mandate specifically authorizing the performance of an
act. Article 1878 specifies when a special power of attorney is
needed because the acts involved are acts of dominion or
ownership.
REVOCATION OF POWER OF ATTORNEY
(Five reasons of revoking power of attorney)

1. Relationship changes
2. Death or incapacity
3. Availability concerns
4. Your agent asks you to
5. You change your mind
WAYS TO REVOKE POWER OF ATTORNEY
1. Prepare a written revocation letter
2. Destroy all existing copies of your power of attorney
3. Create a new power of attorney document
THANK YOU PO!