13372162-Agency-Digest.doc

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NATURE, NATURE, FORM AND KINDS OF AGENCY  Art. 1868. 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. latter. (17!a"

(" (" /o comp comprromis mise, to subm ubmit %uest uestio ions ns to arbitration, to renounce the right to appeal from a  'udgment, to waive ob'ections to the venue of an action or to abandon a prescription already ac%uired+ (0" /o /o waive any obligation gratuitously+ (" (" /o ent enter int into any any cont contra ract ct by whic which h the owne owners rshi hip p of an immo immova vabl ble e is tran transm smit itte ted d or ac%ui ac%uire red d eith either er grat gratuit uitou ousl sly y or for for a valu valuab able le consideration+ (6" /o ma$e gifts, e#cept customary ones for charity or thos those e made made to empl employ oyee eess in the the bus busines inesss managed by the agent+ (7" /o loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration+ (8" /o lease any real property to another person for more than one year+ (!" /o bind bind the principa principall to rende renderr some some servic service e without compensation+ (1" /o bind the princi incip pal in a contract of  partnership+ (11" (11" /o obligat obligate e the principa principall as a guaran guarantor tor or surety+ (1" /o create or convey real rights over immovable property+ (1" /o /o accept or repudiate an inheritance+ (10" /o ratify ratify or recognie recognie obligations contracted contracted before the agency+ (1" Any other act of strict dominion. (n"

Art. 186!. Agency may be e#press, or implied from the acts of the principal, from his silence or lac$ of action, or his failure to repudiate the agency, $nowing that another person is acting on his behalf without authority. authority. Agency may be oral, unless the law re%uires a speci&c form. (171a" Art. 187. Acceptance by the agent may also be e#press, or implied from his acts which carry out the agency, or from his silence or inaction according to the circumstances. (n" Art. 1871. Between persons who are present, the acceptance of the agency may also be implied if the principal delivers his power of attorney to the agent and the latter receives it without any ob'ection. (n"

Art. 187. Between persons who are absent, the acceptance of the agency cannot be implied from the silence of the agent, e#cept) (1" (1" *hen *hen the the prin princip cipal al tran transm smit itss his his powe powerr of  attorney to the agent, who receives it without any ob'ection+ (" *hen the principal entrusts to him by letter or telegram a power of attorney with respect to the business in which he is habitually engaged as an agent, and he did not reply to the letter or telegram. Art. 187!. A special power to sell e#cludes the power to mortgage+ and a special power to mortgage does not include Art. 187. -f a person specially informs another or states by the power to sell. (n" public public advertise advertisement ment that he has given a power of attorney attorney to a thir third d pers person on,, the the latte latterr ther thereb eby y becom becomes es a duly duly Art. 188. A special power to compromise does not authorie author authorie ied d agent, agent, in the former former case case with with respe respect ct to the submission to arbitration. (171a" person who received the special information, and in the latter case with regard to any person. Art. Art. 1881 1881.. /he /he agen agentt must must act within within the the scop scope e of his  /he power shall continue to be in i n full force until the authority. 4e may do such acts as may be conducive to the notice is rescinded in the same manner in which it was given. accomplishment of the purpose of the agency. agency. (1710a" Art. 1870. *hen a sale of a piece of land or any interest therein therein is through through an agent, agent, the authority authority of the latter latter shall be in writing+ otherwise, the sale shall be void. Art. 187. Agency is presumed to be for a compensation, unless there is proof to the contrary. contrary. (n" Art. 1876. An agency is either general or special.  /he former comprises all the business of the princi principal pal.. /he latter latter,, one or more more speci&c speci&c transa transacti ctions ons.. (171" 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 e#ecute such acts as he may consider appropriate, or even though the the agen agency cy shou should ld auth author orie ie a gene genera rall and and unlim unlimit ited ed management. (n" Art. 1878. 2pecial powers of attorney are necessary in the following cases) (1" (1" /o ma$ ma$e such such paym paymen ents ts as are are not not usua usually lly considered as acts of administration+ (" (" /o e3ect 3ect nova novattions ions whic which h put put an end to obliga obligation tionss alread already y in e#ist e#istenc ence e at the time time the agency was constituted+

Art. 188. /he limits of the agent5s authority shall not be considered e#ceeded should it have been performed in a manne mannerr more more adva advant ntag ageo eous us to the the prin princip cipal al than than that that speci&ed by him. (171" Art. 188. -f an agent acts in his own name, the principal has no right of action against the persons with whom the agent has contra contracte cted+ d+ neithe neitherr have have such such person personss against against the principal. -n such case the agent is the one directly bound in favor of  the the pers person on wit with who whom he has con contrac tracte ted, d, as if the transaction were his own, e#cept when the contract involves things belonging to the principal.  /he provisions of this article shall be understood to be without pre'udice to the actions between the principal and agent. SPOUSES YU ENG CHO & FRANCISCO TAO YU v. PAN AMERICAN WORLD AIRWAYS, AIRWAYS, INC. (GR 12356, M!"#$ 2%, 2 A/2)

lainti3 9u :ng ho is the owner of 9oung 4ardware o. and Achilles ;ar$eting. -n connection with n ?uly 1, 1!76, plainti3s bought plane tic$ets (:#h (:#hs. s. A @ B" from from defe defend ndan antt lau laudi dia a /agun agunica icarr who who

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represented herself to be an agent of defendant /ourist *orld 2ervices, -nc. (/*2-". /he destination