QUIZ PRACTICE ON AGENCY

By the contract of agency a person binds himself to render some service or to do something in

representation or on behalf of another, with the consent or authority of the latter.

Like all contracts, agency has the following elements namely consent, object, and consideration. The
most important element is consent as it pertains not only to the parties’ legal capacity, but also to their
meeting of the minds or their intent to form an agency voluntarily. Without such, there is no agency.

The parties in a contract of agency are the principal and the agent. The principal is the one who authorizes
the agent to act in his behalf. The agent, on the other hand, is the one who accepts such representation
from the principal. The effect of an agency is that when the agent acts, he’s not acting for himself but for
the principal as if the principal transacted with the third person directly. If the agent acts for himself and
not for the principal, there is no agency.

The characteristics of an agency are the following;

1. Consensual
2. Principal
3. Nominate
4. Unilateral
5. Representation
6. Fiduciary

It is fiduciary in the sense that once trust and confidence is lost, the agency may be revoked.

A contract of agency could be classified as express or implied. As to form, the agency could be oral
except when the law requires it to be in writing such as when it involves an immovable. As a general rule,
an agency is for compensation, unless the parties stipulate otherwise.

As to kinds of agent, it could either be general or special. A genera agent is the one employed to do all
acts of the principal.On the other hand, a special agent is authorized to do only a specific transaction.

A contract of agency could be couched on general terms except in cases where a special power of attorney
is necessary where in an agent is to perform not merely acts of administration but those which constitute
acts of strict dominion.