No one may contract in the name of other without being authorized – If no consent it is unenforceable,

but it may be ratified.

Elements of agency: a. consent, b. object, c. agent acts as a representative, d. agent acts within
authority

If parties have no capacity to contract – voidable

ESSENTIAL CHARACTERISTICS OF AGENCY

1. NOMINATE – IT IS SPECIFICALLY NAMED IN THE CIVIL CODE

2. PRINCIPAL – IT CAN STAND ON ITS OWN
3. CONSNSUAL – IT IS PERFECTED BY MERE CONSENT
4. GENERALLY ONEROUS – FOR COMPENSATION
5. REVOCABLE – PARTIES CANNOT BE MADE TO STAY
6. PREPARATORY

KINDS OF AGENCY
1. GENERAL AGENCY – ENCOMPASSES ALL BUSINESS OF PRINCIPAL, ACTS OF ADMINISTRATION
2. SPECIAL AGENCY- COVERS A SPECIFIC TRANSACTION, ACTS OF DOMINION

AGENCY VS BROKERAGE
- IN AGENCY , THERE IS A FIDUCIARY RELATIONSHIP, IN BROKERAGE , THERE IS NON
- A BROKER IS A PROFESSION OF BRINGING BUYER AND SELLER TOGETHER TO BARGAIN
- BROKER HAS NO POWER TO ENTER INTO CONTRACTS IN BEHALF OF THE PARTY
- BROKER IS NOT INCAPACITATED TO BUY LAND OF THE SELLER

FORMALITIES OF AGENCY
- May be expressed of implied, from his silence ot lack of action, or failure to repudiate the
agency .
- May be oral unless a form is required

When there is meeting of minds between principal and agent

- Between persons who are present, agency may be implied if principal delivery his power of atty
to the agent and receives it without objections
- Between persons who are absent, cannot be implied from silence except, principal entrust by
letter the SPA and he did not reply.

Perfection of the contracts of agency as it affects third persons

- If person informs another or by public advertisement that he has given a power of atty to a third
person, the latter becomes a authorized agent

AGENCY BY ESTOPPEL
- IF A PERSON SPECIALLY INFORMS ANOTHER OR A ADVERTISEMENT THAT HE HAS GIVEN
AUTHORITY TO ANOTHER, THE LATTER BECOMES A AUTHORIZED AGENT. WITH RESPECT TO THE
PERSON TOLD, OR TO ANY PERSON IN REGARD TO ADVERTISEMENT.

THIRD PARTY MUST EXERCIDE DILIGENCE IN DEALING WITH A AGENT