Agency

A contract whereby a person binds himself to render some service or to do something in representation
or in behalf of another, with the consent and authority of the latter.
 
Importance of Agency
Agency enables a person to perform diverse juridical acts at the same time by enabling him to be
constructively present in many places which would not be possible for him to do physically.
 
-he who acts to another, acts by himself.
-personal, representative and derivative
 
ELEMENTS OF A CONTRACT
1. Consent (express or implied)
2. Object
3. The agent acts aas representative and not for himself
4. The agent acts withing the scope of his authority
 
Characteristics of agency
1. Principal - can stand by itself
2. Preparatory- other contract can entered into
3. Consensual - perfected by mere consent
4. Onerous- art. 1875- presumed to be for a compensation unless there is proof to the contrary.
5. Nominate- name given by law
6. Bilateral - parties are bound reciprocally to each other
7. Commutative- receive almost equivalent values.
 
Parties to a contract of Agency
1. Principal
 The person represented by agent
a. Capacity to be a principal- any person with legal capacity
B. Effect if principal is incapacitated
-if principal is incapacitated but agent is capacitated, the contract of agency is VOIDABLE and
agent can't enter in behalf of the principal since agent is the only extension of the personality of
the principal.
2. Agent
 He acts for and represents the principal
a. Capacity to be a agent
 A person capable of acting for himself can be an agent of another; LEGAL CAPACITY is not
required for validity.
B.Effect if principal is incapacitated
-the contract of agency is VOIDABLE if the agent is incapable of giving consent. While the contract
entered into by agent in behalf of the principal is really that of the principal and which will be
VALID as long as the principal is capable.