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12/11/13 (WED) BUSLAW2 A 3rd person has no obligation to

FINALS: Dec. 18 @ 6:00-8:00 investigate the contract between the


principal and the agent.
AGENCY
- is just an extension of the personality 1902. 3rd person may (not mandatory)
of the principal. require the agent to present the
- can be a contract that is expressed contract of agency if necessary.
or implied (lack of action).. The contract between the principal
and the agent will not bind 3rd persons
Civil Code of the Philippines
1874. A contract of sale of a piece of Any action done by the agent acting
land of any interest therein done by an within the scope of his authority will
agent. bind the principal.
- authority must be in writing, If the agent acted beyond his authority
otherwise it is void. then this will not bind the principal
- and we will take responsibility for his
own actions.
1875. It is presumed that an agent
acts for compensation. 1911. If the agent exceeded his
authority, the principal is solidarily
1878. Special Power of Attorney (SPA) liable to the agent if he allowed the
- necessary in acts of strict dominion agent to act as though he have full
- should be in writing and this must be power.
notarized. If there is an implied agency, the
- to lease real property for more than principal is liable,
1 year.
Modes of Extinguishing Agency
* If the lease is less than 1 year, the Revocation
agent is authorized to act of Withdrawal by the Agent
administration. Death, Insanity, Insolvency
The agent must act within the scope of Dissolution of the Firm or Corporation
his authority. Accomplishment of the Purpose
If the act of the agent is advantageous The Expiration of the Period of Agency
to the principal then it is not in excess ------------------------------------------------------
of his authority. ----------
It is void if it was in excess of the
agents authority. Pedro is in New York and cannot
therefore transact business here in the
If the agent acts in his own name Philippines hired an agent Juan to act
___________? in his behalf.
If the agent contracts in the name of Pedro wanted to transfer his property
the principal and exceeding his and authorized Juan to do his sale to
authority, it is void unless ratified by X. This is void since Juan does not own
the principal. the property.
Juan needs to execute an act of strict
dominion which requires SPA which York. This will produce the public
needs to be notarized by the consul document which will then be sent to
based on Philippine embassy in New the Philippines.