10. Who is a sub-agent? Is appointment by an agent of a sub-agent allowed?

If no, are there

exceptions?

Accordingly, unless prohibited by the principal, the agent may appoint a sub-agent or

substitute. A Sub-agent is a person to whom the agent delegates, as his agent, the performance of
an act for the principal which the agent has been empowered to perform through his
representative.. 

Art. 1892 provides that the agent may appoint a substitute if the principal has not
prohibited him from doing so; but he shall be responsible for the acts of the substitute:
1.) When he was not given the power to appoint one;
2.) When he was given such power, but without designating the person, and the person
appointed was notoriously incompetent or insolvent.

11. May a principal be bound by the act of an agent beyond his power?

The acts of an agent beyond the scope of his authority do not bind the principal, unless
the principal ratifies them, expressly or impliedly. When the agent exceeds his authority, the
agent becomes personally liable for the damage. But even when the agent exceeds his authority,
the principal is still solidarily liable together with the agent if the principal allowed the agent to
act as though the agent had full powers.

12. Define apparent authority and authority by estoppel.

The doctrine of apparent authority provides that a corporation will be estopped from

denying the agent's authority if it knowingly permits one of its officers or any other agent to act
within the scope of an apparent authority, and it holds him out to the public as possessing the
power to do those acts.

Authority by estoppel is where the conduct of the principal causes the third party
reasonably and in good faith to believe that the agent has authority to act on behalf of the
principal and the agent is acting within the scope of that authority, the principal may not invoke
against the third party the lack of authority of the agent.

The difference between the two is that apparent authority which though, not actually
granted, the principal knowingly permits the agent to exercise or holds him out as possessing.
While authority by estoppel arises in cases where the principal, by his negligence, permits his
agent to exercise powers not granted to him, even though the principal may have no notice or
knowledge of the conduct of the agent.