AGENCY AUF SCHOOL OF LAW AY 2014-2015Article 1868: By the contract of agency a person (agent) binds himself to render some service or to do something in representation or on behalf of another (principal) with the consent of authority of the latter.Concept: applies to all situations in which one person is employed to render some service for another.EXCEPTIONS:Relationship of an employer and employee (Article 1700)A constructs the building himself, buying the materials and employing C who shall construct the building under his direction and supervision.Masters and servants (Article 1680)Employer and independent contractor (Article 1713)A hires C, a building contractor, to construct the building with the materials and labor to be furnished by CTERM USED IN OTHER SENSES1. To denote the place at which the business is transacted2. In the sense of instrumentality by which the thing is done3. Refer to the exclusive right of the person to sell a product of another in specific territoryCHARACTERISTICS OF A CONTRACT1. Consensual perfected by mere consent2. Principal it can stand by itself without the need of another contract3. Nominate it has its own name What do mean about it has its own name? To distinguish them. E.g sale, loan, hiring, partnership etc. The civil code specifically provides for it. It is specifically defined in the civil code4. Unilateral if gratuitous (obligations for one party arises) Bilateral if it is for compensation (gives rise to reciprocal obligation)5. Preparatory entered into as a means to an end.NATURE, BASIS, AND PURPOSE OF AGENCYNATURE: Agency as a contract in article 1868Manifestation of consent: Principal must intend that an agent shall act for him in turn agent must accept the authority and act on it.EXPRESSION: EITHER IN WORDS OR CONDUCT BETWEEEN THEMAgent, by legal fiction, becomes principal: In acting for the principal, by legal fiction agent becomes the principal authorized to perform all acts which the latter would have him do.Presence/absence of contract or consideration: Although usually the agency relationship is usually contractual one either express or implied, based upon a consideration (ART. 1875) It is not necessarily so; the relationship can also be created by operations of law or acting as a principal gratuitously. Ergo, there can be an agency or agency power without contract or consideration.Legal consequence of agency may attach where one person acts for another without authority or in excess of his authority if the principal subsequently ratifies it (ARTS 1881-1882)BASIS: Also a representative relation. Agent renders some service or does something in representative or in behalf of anotherPersonal contract of representation: based on trust and confidence reposed by principal on his agent Agency is generally revocable (Arts 1920, 1927)Acts of agents, by legal fiction, acts of principalIf, Art 1881: The agent must act within the scope of his authority xxxThus, agents acts produce the same legal and binding capacity as if they were personally done by the principal.He who acts through another acts himselfPURPOSE: To extend the personality of the principal through the facility of the agentPARTIES TO THE CONTRACT (PAT) Principal - one whom the agent represents and from whom he derives his authority Agent one who acts for and represents another Third party the party whom the business is transactedESSENTIAL ELEMENTS OF AGENCY Consent Implied Express Object What the transaction is? eg. Business transactions Execution of the agent of the juridical act as a representative of the principal to a third person Agent acts as a representative and not for himself Agent acts within the scope of his authority

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