LAW ON AGENCY

Second Semester 2013-2014

January A. Sanchez
I.INTRODUCTION
A.Definition (Art. 1868)
Orient Air Services & Hotel Representatives v. Court of Appeals, 197 SCRA 645 (1991)
Thomas v. Pineda, 89 Phil. 312 (1951)
Rallos v. Felix Go Chan & Sons Realty Corp. 18 SCRA 251 (1978)
Palma v. Cristobal, 77 Phil. 712 (1946)
Albaladejo y Cia v. Phil. Refining Co., 45 Phil. 556 (1923)
Air France v. Court of Appeals, 126 SCRA 448 (1983)
Victorias Milling Co., Inc. v. Court Appeals, 333 SCRA 663 (2000)
Eurotech Industrial Technologies, Inc. v. Cuizon, 521 SCRA 584 (2007)
Philex Mining Corp. v. Commissioner of Internal Revenue, 551 SCRA 428 (2008)
Chemphil Export v. Court of Appeals, 251 SCRA 217 (1995)
Shoppers Paradise Realty v. Roque, 419 SCRA 93 (2004)
Nielson & Co., Inc. v. Lepanto Consolidated Mining Co., 26 SCRA 540, 546-547 (1968)
Shell Co. v. Firemens Insurance of Newark, 100 Phil. 757 (1957)
Dela Cruz v. Northern Theatrical Enterprises, 95 Phil 739 (1954)
Santos v. Buenconsejo, 14 SCRA 407 (1965)
CIR v. Cadwallader Pacific Company, G.R. No. L-18297, 29 November 1966
Valera v. Velasco, 51 Phil. 695 (1928)
B.Essential Characteristics and Requirements of a Contract of Agency (Articles 1868, 1869, 1870,
1910, 1818)
Cui v. Cui, 100 Phil. 913 (1964)
Litonjua, Jr. v. Eternit Corp., 490 SCRA 204 (2006)
Dominion Insurance Corp. v. Court of Appeals, 376 SCRA 239 (2002)
Aguna v. Larena, 57 Phil 630 (1932)
Inland Realty v. Court of Appeals, 273 SCRA 70 (1997)
Manotok Bros. Inc. v. Court of Appeals, 221 SCRA 224 (1993)
Prats v. Court of Appeals, 81 SCRA 360 (1978)
Doles v. Angeles, 492 SCRA 607 (2006)
Milling Co., Inc. v. Court of Appeals, 333 SCRA 663 (2000)
Republic v. Evangelista, 466 SCRA 544 (2005)
Aguna v. Larena, 57 Phil 630 (1932)
Philpotts v. Phil. Mfg. Co., 40 Phil 471 (1919)
Severino v. Severino, 44 Phil. 343 (1923)
C.Contract of Agency distinguished from other contracts
1.

Brokerage
Behn, Meyer and Co., Ltd. v. Nolting and Garcia, 35 Phil. 274 (1916)
Schmid and Oberly, Inc. v. RJL Martinez, 166 SCRA 493 (1988)
Reyes v. Rural Bank of San Miguel, 424 SCRA 135 (2004)
Araneta, Inc. v. Del Paterno, 91 Phil. 786 (1952)
Tan v. Gullas, 393 SCRA 334 (2002)
Phil. Health-Care Providers (Maxicare) v. Estrada, 542 SCRA 616 (2008)

Abacus Security Corp. v. Ampil, 483 SCRA 315 (2006)

2.

Loan (Art. 1933)

Doles v. Angeles, supra

3.

Independent Contract (Article 1713)

Fressel v. Mariano Uy Chaco Sons & Co., 34 Phil. 122 (1915)

4.
5.

Partnership (Art. 1767)

Sale (Art. 1458)
Quiroga v. Parsons, 38 Phil. 501 (1918)
Reiterated in Far Eastern Export & Import Co., v. Lim Tech Suan, 97 Phil. 171
(1955) Pearl Island Commercial Corp. v. Lim Tan Tong, 101 Phil. 789 (1957)
Lim v. Court of Appeals, 254 SCRA 170 (1996)
Victorias Milling Co., Inc. v. Court Appeals, supra
National Rice and Corn Corp. v. Court of Appeals, 91 SCRA 437 (1979)

6.
7.

Bailment
Judicial Administration

II.KINDS AND FORM OF AGENCY (Articles 1869-1883)

Veloso v. Court of Appeals, 260 SCRA 590 (1996)
Macke v. Camps, 7 Phil 553 (1907)
Olaguer v. Purugannan, Jr. 575 SCRA 460 (2007)
Estate of Lino Olaguer v. Ongjico, 563 SCRA 373 (2009)
Rivero v. Court of Appeals, 458 SCRA 714 (2005)
St. Marys Farm Inc. Prima Real Properties, Inc., 560 SCRA 704 (2008)
A. Perfection of Agency (Art. 1873)
Rallos v. Yangco, 20 Phil 269 (1911)
Conde v. Court of Appeals, 119 SCRA 245 (1982)
Equitable PCI-Bank v. Ku, 355 SCRA 309 (2001)
Lim v. Court of Appeals, 254 SCRA 170 (1996)
B.

Presumption
Lopez v. Tan Tioco, 8 Phil. 693 (1907) People v. Yabut, 76 SCRA 624 (1977)
Harry E. Keeler Elec . Co. v. Rodriguez, 44 Phil. 19 (1922)
Bordador v. Luz, 283 SCRA 374 (1997)
Dizon v. Court of Appeals, 302 SCRA 288 (1999)

C. Agency By Estoppel
Macke v. Camps, supra
Naguiat v. Court of Appeals, 412 SCRA 592 (2003)
Litonjua, Jr. v. Eternit Corp., supra
Nogales v. Capitol Medical, G.R. 142625, 19 December 2006
III.RIGHTS, OBLIGATIONS, and LIABILITY OF THE AGENT
A. Rights
1. To compensation
Inland Realty Investment Service, Inc. v. Court of Appeals, 273 SCRA 70 (1997)
Danon v. Brimo & Co., G.R. No. 15823, 12 September 1921

People v. Castillo, 333 SCRA 506 (2000)

Infante v. Cunanan, 93 Phil. 693 (1953)
Sanchez v. Medicard, G.R. No. 141525, 2 September 2005
Domingo v. Domingo, G.R. No. L-30573, 29 October 1971
Pratts v. Court of Appeals, 81 SCRA 360 (1978)
Manotok Bros. Inc. v. Court of Appeals, supra
2. To appoint a substitute (Arts. 1892-1983)
3. Retain objects of the Agency (Arts. 1912-1914)
B.

Obligations (Arts. 1884-1891)

Domingo v. Domingo, supra
Villa v. Garcia Bosque, 49 Phil. 126 (1926)
Phil. National Bank v. Manila Surety & Fidelity Co., Inc., 14 SCRA 776 (1965)
Ramos v. Cavives, 94 Phil. 440 (154)
Gutierrez Hermanos v. Oria Hermanos, 30 Phil. 491 (1915)
U.S. v. Reyes, 36 Phil. 791 (1917)
Development Bank of the Phils. v. Court of Appeals, 231 SCRA 370 (1994)
Albert v. University Publishing Co., 13 SCRA 84 (1965)
Eugenio v. Court of Appeals, 239 SCRA 207 (1994)
Metropolitan Bank Trust Co. v. Court of Appeals, 194 SCRA 169 (1991)

C.

Liability (Arts. 1894-1909)

National Power Corp. v. National Merchandising Corp., 117 SCRA 789 (1982)
Perpetual Savings Bank v. Fajardo, G.R. No. 79760, 28 June 1993
Eurotech Industrial Technologies, Inc. v. Cuizon, supra

IV.RIGHTS, OBLIGATIONS, and LIABILITY OF THE PRINCIPAL

A. Rights
Green Valley Poultry & Allied products, Inc. v. Intermediate Appellate Court, 133 SCRA 697 (1984)
B.

Obligations (Arts. 1912-1914)

Board of Liquidators v. Kalaw, G.R. No. L-18805, 14 August 1967
Prudential Bank v. Court of Appeals, 223 SCRA 350 (1993)
Cuison v. Court of Appeals, 227 SCRA 391 (1993)

C.

Liability (Art. 1915-1918)

Diolosa v. Court of Appeals, 130 SCRA 350 (1984)
Valenzuela v. Court of Appeals, 190 SCRA 1 (1990)

V.EXTINGUISHMENT OF AGENCY (Arts. 1231, 1919)

A. Revocation (Arts. 1921-1927)
Barreto v. Sta. Marina, 20 Phil. 440 (1911)
CMS Logging v. Court of Appeals, 211 SCRA 374 (1992)
Republic v. Evangelista, G.R. No. 156015, 11 August 2005
Sanchez v. Medicard, supra Diolosa v. Court of Appeals, supra
Philippine National Bank v. Intermediate Appellate Court, 189 SCRA 680 (1990)
Lustan v. Court of Appeals, 266 SCRA 683 (1997)
Coleongco v. Claparols, 10 SCRA 577
B.

Withdrawal of the agent (Arts. 1928-1929)

Infante v. Cunanan, supra

C.

Death, civil interdiction, insanity or insolvency of the principal or of the agent (Arts.
1930-1932)
Rallos v. Go Chan, supra
Herrera v. Luy Kim Guan, 1 SCRA 406 (1961)
Buason and Reyes v. Panuyas, 105 Phil. 795 (1959)

D. Dissolution of the firm or corporation which entrusted or accepted the agency

E. Accomplishment of the object or purpose of the agency
F. Expiration of the period