BUSINESS LAW LAW ON AGENCY

OTLINE OF LECTURE IN LAWE AGENCY

(Modes of Extinguishment of Agency)

1. Modes of extinguishment of agent

1. By its revocation by the principal;

2. By the withdrawal of the agent;
3. By the death, civil interdiction, insanity or insolvency of the principal or of the agent;
4. By the dissolution of the firm or corporation which entrusted or accepted the agency;
5. By the accomplishment of the object or purpose of the agency; and
6. By the expiration of the period for which the agency was constituted.

The other modes of extinguishment of obligation in general may also apply.

2. Contract of agency may be revoked by the principal

1. Expressly

2. Impliedly

a. By the appointment of a new agent for the same business or transaction.

b. By direct management by the principal of the business entrusted to the agent.
a. With respect to a general power of attorney previously granted 9 ex. to manage a
business), by granting a special power of attorney to another (ex. to hire personnel for the
business) as regards the matter involved in the latter.

3. Cases when an agency is irrevocable.

The principal may generally revoke an agency at will.

In the following cases, he has no right to revoke the agency without incurring liability for damages:

1. If the agency is coupled with interest;

2. If a bilateral contract depends on the agency;
3. If the agency is a means of fulfilling an obligation already contracted.
4. If partner is appointed manager in a contract of partnership, his appointment being revocable only
upon just and lawful cause and upon the vote of the partners representing the controlling interest.

4. Agency not immediately terminated by the death of the principal

1. If the agency is necessary to finish the business already begun on the death of the principal,
where delay should entail any danger;
2. If it has been constituted in the common interest or for the benefit of both the principal and
the agent;
3. If it has been constituted in the interest of a third person who has accepted the stipulation in
his favor.

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