U P B A R O P S 2 0 0 8 Page
AGENCYNATURE, FORM, AND KINDS OFAGENCY
Definition and concept
: where a person bindshimself,1. to render some service, or2. to do something in representationor on behalf of another, with thelatter’s consent or authority.
is a relationship which implies apower in an agent to contract with a 3rdperson on behalf of a principal. [
HumbleOil & Refining v Beu Tex. Cir. App.
is personal, representative, andderivative in nature. The authority to actemanates from the powers granted to himby his principal. His act is the act of theprincipal if done within the scope of theauthority. [
Rallos v Felix Go Chan & SonsRealty, 1978
Nature, basis and purposes
Since agency is a contract, there mustconsent, object, and cause.The purpose of agency is to extend theprincipal’s personality.
What a man may do in person,he may do thru another.
There are acts which the agentmay not do for the principal:1.
acts.Knowledge of the agent is imputed to theprincipal.
1. Agent’s interests are adverseto those of the principal;2. Agent’s duty is not to discloseinformation; and3. 3rd person claiming the benefitof the rule colludes with agent todefraud principal.The theory of imputed knowledge ascribes theknowledge of the agent, to the principal, notthe other way around. The knowledge of theprincipal can’t be imputed to its agent(
Sunace Internat’l Mgt. Services v. NLRC,2006
Perfected by mere consent.
On the part of the principal,there must be an actual intention to appointor an intention naturally inferable from hiswords or actions; and on the part of theagent, there must be an intention to acceptthe appointment and act on it, and in theabsence of such intent, there is generally noagency. [
Victorias Milling v CA, 2000
One who clothes another withapparent authority as his agent, and holdshim out to the public as such, can’t bepermitted to deny the authority of suchperson to act as his agent, to the prejudice of innocent third parties dealing with suchperson in good faith. [
Macke v Camps, 1907
Has its own name.3.
Entered into as a means to anend.4.
Can stand by itself without needof another contract:5. If gratuitous,
Creates obligationsfor only one of the parties. If forcompensation,
Gives rise toreciprocal rights and obligations.
1. Consent, express or implied2. Object of the contract, which is theexecution of a juridical act in relation tothird persons;3. Agent acts as a representative; and4. Agent acts within the scope of hisauthority.
(Rallos v Felix Go Chan & SonsRealty, 1978)
The agent may also be called an attorney,proxy, delegate or representative.
(Angelesv. PNR, 2006)
Relationship between the parties is
With respect to the property that is subjectmatter of the agency, the agent is estoppedfrom asserting an interest adverse to theinterest of the principal. The agent cannotbind the principal where the agent has anadverse interest.
1. If agent acts with the knowledgeand consent of both, in which caseeither party may repudiate thetransaction.2. If agent is mere intermediarywith no independent initiative.The agent must not use or divulge confidentialinformation. After agency terminates, theagent is no longer under a duty to abstainfrom competition and may use generalinformation (not acquired in violation of hisduty as agent).While acting as an agent of his employer, anemployee owes the duty of fidelity andloyalty. Being a fiduciary, he can’t solicit hisemployer’s customers or co-employees forhimself or for a business competitor of hisemployer. (
Molina v. Pacific Plans, 2006)