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Midterms Notes

The document discusses the obligations of an agent, including being responsible for the acts of sub-agents unless unauthorized, paying interest on funds applied for their own use, being responsible for goods received, and answering for fraud or negligence which would destroy the fiduciary relationship with the principal.

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Blaise VE
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35 views3 pages

Midterms Notes

The document discusses the obligations of an agent, including being responsible for the acts of sub-agents unless unauthorized, paying interest on funds applied for their own use, being responsible for goods received, and answering for fraud or negligence which would destroy the fiduciary relationship with the principal.

Uploaded by

Blaise VE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Obligations of an agent (continuation)

I. TO be responsible in certain cases for the acts of the Sub agent


 Agent may appoint a sub-agent if he is not prohibited
 Sub-agent – delegated by the agent of an principal.
 He shall be responsible for the acts of the sub-agent
o If he was not authorized to appoint one – all acts of the sub-agent is void
o If authorized – if the person appointed is notoriously incompetent or insolvent
o If silent as to appointment if beneficial to the principal = valid = if there is damage to the
principal = agent is primarily liable.

 If there are 2 or more agents = joint liability / responsibility = solidary must be expressed
(otherwise, their obligations are presumed to be joint. )
 If so, (where obligations of the sub-agents are solidary) each agent is responsible for the non-
fulfillment of the agency and for the fault or negligence or the other agents, except if the fellow
agents acted beyond the scope of their authority.
o If the contract is silent, the law recognizes that the agent can appoint an substitute and
such act of the substitute if beneficial to the principal will bind the same. Otherwise, the
agent is deemed responsible.

II. To pay interest on funds he has applied on his own


 Serves as indemnity
 Liable for what he owes the principal after the extinguishment of the agency
 No need for demand by the principal.

III. To be responsible for the goods received


 In view of a person’s refusal to act as an agent of a principal.
 Diligence of a good father of a family.

IV. To answer for his fraud or negligence


 Fraud or negligence would destroy the fiduciary relationship between the principal and the
agent.

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