Professional Documents
Culture Documents
Nature of Agency
1. Nominate, principal
2. Consensual
3. Unilateral and generally onerous
4. Preparatory and representative
5. Fiduciary and revocable
(Neither the principal nor the agent can be forced to remain in the
relationship when they choose to have it terminated.)
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3. Cannot acquire for himself property of the principal entrusted for
disposition.
Agency by Estoppel
* Even if the agent has exceeded his powers, the principal should be
made liable if he allowed the agent to act as though he had full
powers.
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1. Principal manifested a representation of the agent’s authority.
2. Third person in GF relied on the representation.
3. Third person changed his position, to his detriment, relying on the
representation.
Special agency – is one which will cover only one or more specific
transactions. (Particular agency) (Agency couched in specific terms)
In case of breach, the principal can sue for damages, but he cannot
compel agent specific performance because it does not apply to
obligations to do.
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XPN: 1. He exceeds authority. (Principal may ratify, if not
unenforceable as against the principal.)
2. He binds himself to the contract personally.
XPN to the XPN: When the third person was aware that the agent
exceeded his powers, the contract is unenforceable even between the
agent and the third person. (in pari delicto)
The principal has not right of action against the third persons,
neither do the third persons have right of action against the
principal.
XPNS:
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Duty of Loyalty and Art 1891 – When an agent enters into a
contract in his own name on a matter that falls within the scope of
the agency, he is bound to render an account of his transactions and
deliver to the principal what he received by virtue of the agency
even if it may not be owing to the principal.
I the principal did not prohibit him from doing so. Effect: Sub-agent
is agent of principal too. Agent is responsible for the acts of the sub-
agent when:
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2. Effect novation of obligations.
3. Compromise, submit to arbitration, renounce right to appeal,
waive objections, renounce prescription.
4. Waive obligations gratuitously.
5. Transfer of immovable. (whether onerous or gratuitous)
6. Make non-customary gifts.
7. Loan or borrow money. (Unless urgently needed to preserve a
thing under administration)
8. Lease for more than 1 year.
9. Contract for principal to perform service without compensation.
10. Bind principal in partnership contract.
11. Obligate principal as guarantor or surety.
12. Convey or create rights over real property.
13. Accept or repudiate inheritance.
14. Ratify or recognize obligations contracted before agency.
15. Other acts of strict dominion.
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3. Principal must advance sums necessary for the agency if the agent
requests. If the agent paid for it first, the principal must reimburse.
Irrevocable Agency
XPNS:
Extinguishment of Agency
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1. Revocation – even if it is irrevocable for a definite term or
period, the principal just pays damages to agent for damages caused
if any.
2. Withdrawal of agent
3. Death, civil interdiction, insanity, or insolvency of principal or
agent.
3. Agent did not know the principal was dead and third party was in
GF.
* IF the third party was in BF, void for lack of consent, an essential
element.
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COMPROMISE
LEASE
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one party binds himself to one party binds himself to
execute a piece of work or give to another the
render some service for a enjoyment or use of a thing
price certain. for a price certain, whether
for a definite or indefinite
period. (consensual and
onerous. Not a personal
contract therefore death of
party will not auto-extinguish
the contract.
* The lessee may not assign the lease without the lessor’s consent.
* The lessee may sublease the property even without the lessor’s
consent. But the lessee must still comply with his responsibility to
perform the contract toward the lessor.
The lessor may hold the sublessee for rent due from the lessee
(Accion Directa) But the sublessee cannot be held liable beyond the
amount due from him under the sublease.
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Nature of sublease agreement
It must comply with the lease agreement as to the manner of use and
preservation of the thing. And so, if the lease agreement provides
that the property must only be residential, the sublease cannot be for
the use of the property as commercial area.
1. Deliver the thing, which must be fit for the use intended.
2. To make necessary repairs on the thing to keep it fit for such use.
(Unless provided otherwise)
3. Maintain the lessee in peaceful and adequate enjoyment of the
lease during the contract.
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1. Rescission with damages
2. Damages alone and allow contract to continue.
1. Rescission
2. Reduce rent to ½
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Rural land – duration is what is necessary to gather fruits it may
yield for a year.
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2. For ornamental improvements
Lessee not entitled to reimbursement. But the lessee may remove it
if it does not cause any damage. But the lessor may choose to pay
the value of the thing, which terminates the lessee’s right to remove
the improvement.
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