Agency is presumed to be for a compensation, unless there is proof to the contrary. (n)
The agent does not have to prove that theagency is for compensation.
presumption that theagency is for a compensation may becontradicted by contrary evidence
Negotiate contracts relative to property inbehalf of others and for a compensation/fee
When Broker Entitled to Compensation:
Whenever he brings to his principal a party whois able and willing to take the property, andenter into a valid contract upon the termsnamed by the principal, although the particularsmay be arranged and the matter negotiated andcompleted between the principal and thepurchaser directly
However, a broker is never entitled tocommission for unsuccessful efforts.
Manotoc Brothers, Inc. v. CA
221 SCRA 224  The broker should be paid his commission where he is the
efficient procuring cause
in bringing the sale.
Efficient procuring cause:
when there is a closeproximate and causal connection between the effortsand labor of the agent and the principal’s sale ofproperty.
Law on Double Agency:
Disapproved by law for being against publicpolicy and sound morality
where theagent acted with full knowledge and consent ofthe principals
Right of agent to compensation in case of double agency:
1. With knowledge of both principals
-recovery can be had from both principals
2. Without the knowledge of both principals
- the agent can recover from neither
3. With knowledge of one principal
- as to theprincipal who knew of that fact and as to theagent, they are in
and the courtsshall leave them as they were, the contractbetween them being void as against publicpolicy and good morals