What is the underlying principle of the contract of
agency? To accomplish the results by using the services of others; to extend the personality of the principal As a nominate contract, what are its basic and peculiar characteristics? It is personal, representative (no rep in a contract, he cannot be considered as an agent) and it is derivative (something obtained/developed from something else) May legal possibility without representation be inferred? Yes. From the provisions of Article 1883, which provides of the circumstance that the agent acts exclusively in his own name. What is the true essence of the distinction between lease of service and agency? The agent enters or is designed to enter into juridical relations, with or without representation of the principal. (JBL Reyes, Lawyers Journal) May there be agency in impersonation? No. The element of representation is absent. On the rd part of the 3 person, there is no knowledge that the contract is on behalf of a person other than the one before him or with whom he is negotiating. Can agency be admissible in all contracts or acts? Not necessarily. There are certain acts which cannot be performed through an agent such as: the entering into a marriage contract, the making of wills and testaments, the presence of the accused during the trial of a criminal case, the statements required to be made under oath, the right to vote during an election, and an act appointed to the agent in person cannot be delegated to a sub-agent. Can the mere use of the term agency in one clause dominate the whole contract?
Not necessarily. A contract is considered not as the
parties stipulated, but as they performed it. Why is it important that the principal have the capacity required for the act entrusted to the agent? It is because he is the one who will receive the benefits and incur the obligations or losses arising from therefrom. May agency be both unilateral and bilateral? Yes. It may be unilateral if gratuitous because it creates obligation for one of the parties. It is bilateral if for compensation, giving rise to reciprocal rights and obligations. In the presence of conflicting interests, may an agent act as one for both parties to the same transaction? Yes. 1) when both consent, 2) when he is a middleman or intermediary, 3) with no independent alternative, 4) when he acts with knowledge and consent of both What is the effect of a person undertaking to act as agent for another, who has not given his consent? Reciprocal relations are created by virtue of a quasicontract, by which no consent is required and the obligation arises from law or natural equity. May knowledge of the agent be imputed to the principal? Yes, except when: 1) agents interests are adverse to the principal, 2) agents duty is not to disclose the information as where he is informed by way of confidential information, 3) where the person claiming the benefit of the rule colludes with the agent to defraud the principal. May agency be created by operation of law? Yes. For example, agency by estoppel, which creates a conclusive presumption of an appearance of an agency.
**In Agency by estoppel, it is very hard to prove the
existence of the actual agency; An agent by estoppels is no agent at all
If the termination is made by the principal, it is called
a revocation. If it is made by the agent, it is called withdrawal.
This is not, however, true in negotiorum gestio.
What are the instances where special power of
attorney is required?
With respect to the effectiveness of the act
executed by the agent on behalf of the principal, is there a particular capacity required of the agent? No, so long as he has sufficient intelligence and freedom of will. What is an example of a principal that is a juridical person? A corporation or partnership acting thru their officers of such entity as their agent May the principal avoid the contract entered into by his agent in favor of a third person on the ground of his agents incapacity? No. The agents personality is only an extension of the principal. Thus, what is important is the capacity of the principal and not the agent. Is there a concept of transferring in a contract of agency? Yes. However, it is only possession that is transferred, but not ownership. Is the contract of agency the same as sale as to cause, in that it is also essentially an onerous contract? No, but it is presumed to be for compensation, presumed to be onerous, however, it may be deemed gratuitous. What is a feature which would make agency similar to partnership? The basis on trust and confidence; there are fiduciary obligations of an agent as much as there are fiduciary obligations of a partner What are the manners of termination in agency?
1) acts of strict dominion, 2) gratuitous contracts, 3)
contracts where personal trust or confidence is of the essence of the agreement May authority be inferred from the fact that the principal has previously ratified an act of the agent a different character, or an act done under substantially different conditions? No. The implication of authority rests not so much on the number as on the character of the acts approved. Only when can agency by estoppel be invoked? When the third person knew and relied on the conduct of the principal