Carme Ann S.
Rollon August 30, 2019
LLB 2 – 204
Agency, Trusts and Partnership
Submitted to : Atty. Carlo Vincent E. Gimena
Art. 1874. When a sale of a piece of land or any interest therein is through an
agent, the authority of the latter shall be in writing; otherwise, the sale shall be
void.
Illustration :
Rex, the owner of the parcel of land located at SRP Cebu City wishes to sell
such land and is residing in Mindanao for good contracted with Edgar his agent to
be his authorized representative in the sale of such land, for the Contract of Agency
to be valid it should be done in writing as to what extent the authority is delegated
to Edgar on such sale of the parcel of land.
Art. 1875. Agency is presumed to be for a compensation, unless there is proof to
the contrary.
Illustration:
B the principal contracted with A, the agent to be his authorized agent in the
administration of his property and give him Php 10,000.00 monthly as
compensation for the service he rendered to him.
Art. 1877. An agency couched in general terms comprises only acts of
administration, even if the principal should state that he withholds no power or
that the agent may execute such acts as he may consider appropriate, or even
though the agency should authorize a general and unlimited management.
Examples in mere acts of administration:
1. To sue for collection of debts;
2. To employ workers needed in a job order
3. To engage as counsel to preserve the ownership of the principal
4. To lease the principals property to another for a period of one year or less
Art. 1878. Special powers of attorney are necessary in the following cases:
(1) To make such payments as are not usually considered as acts of
administration;
Example:
B, the agent buys stocks in behalf of the corporation needs a board
resolution authorizing him to do such action.
(2) To effect novations which put an end to obligations already in existence at
the time the agency was constituted;
(3) To compromise, to submit questions to arbitration, to renounce the right
to appeal from a judgment, to waive objections to the venue of an action or
to abandon a prescription already acquired;
Illustration:
A, an authorized representative of a manpower agency acted on behalf of the
company by virtue of a special power of attorney validly enter into a
bargaining agreement with the redundated employees of the company at
NLRC.
(4) To waive any obligation gratuitously;
Illustration:
Darleen designated Myrna to deliver to her debtor the goods with out
payment by virtue of a valid special power of attorney.
5) To enter into any contract by which the ownership of an immovable is
transmitted or acquired either gratuitously or for a valuable consideration;
Illustration:
Christine, an OFW authorized her sister by virtue of consularized special
power of attorney in relation to the formers purchase of house and lot in a
subdivision in Cebu.
Art. 1879. A special power to sell excludes the power to mortgage; and a
special power to mortgage does not include the power to sell. (n)
Illustration:
Bryan is an agent of Dan designated and authorized to sell his FORD
Explorer. Bryan cannot enter into a contract of mortgage using his SPA to
sell.
Chapter 3 - Power & Authority, Duties & Obligations, Rights of the Agent
Art. 1884. The agent is bound by his acceptance to carry out the agency, and is
liable for the damages which, through his non-performance, the principal may
suffer.
He must also finish the business already begun on the death of the principal,
should delay entail any danger.
Illustration:
Anne was authorized by Carol as her authorized representative in the
payment of her loan with interest since she was bedridden. Anne negligently forgot
to fulfil her obligation in the payment thus the bank imposed penalty with interest
charge at the principal. Anne here is liable for the damages incurred by the
principal.
Art. 1885. In case a person declines an agency, he is bound to observe the
diligence of a good father of a family in the custody and preservation of the
goods forwarded to him by the owner until the latter should appoint an agent or
take charge of the goods.
Illustration:
Adrian the agent of the owner of the Farm expressed his refusal to continue
the duty as property manager of Fred. Fred will not be able to meet him until 2020,
thus Adrian is obligated to take care the property like a good father of the family
until he will turn over such property to Fred.
Art. 1886. Should there be a stipulation that the agent shall advance the
necessary funds, he shall be bound to do so except when the principal is
insolvent.
Illustration:
Ace the agent of Lucille may advance his compensation if he wishes to
provided that Lucille is capable of advancing the funds.
Art. 1887. In the execution of the agency, the agent shall act in accordance with
the instructions of the principal.
Illustration:
B, the principal instructed his agent Anna to wait for the offer of the other
bidders before starting to participate in the bidding. Anna waited until the last
bidder offered his price as per instruction of her principal.
In default thereof, he shall do all that a good father of a family would do, as
required by the nature of the business.
Illustration:
Christian the authorized agent of Arnel is expected to act with diligence of
that of a good father of the family.
Art. 1888. An agent shall not carry out an agency if its execution would
manifestly result in loss or damage to the principal.
Illustration:
Thea, Bea’s agent cancel her participation of an auction sale because the
heavy equipments left are defective and need major repairs that means additional
burden on the part of the principal Thea.
Art. 1889. The agent shall be liable for damages if, there being a conflict
between his interests and those of the principal, he should prefer his own.
Illustration:
Gary, a representative of Angeli purchase the second hand Toyota Vios car
with is more expensive than that of the second hand Suzuki Alto which Angeli told
him to purchase. Angeli wanted to return the purchased vehicle but the seller
demand for an additional cost in order to exchange with her desired vehicle,
making Gary liable for the damages incurred.
