CONTRACTOFAGENCY

A contract whereby a person

(agent) binds himself to render some service
or to do something in representation or on
behalf of another (principal), with the
consent or authority of the latter. (Article
1868)
The parties to the contract
are:
Principal- one whom the agent represents
and from whom he derives authority; he is
the person represented.
Agent- one who acts for and represents
another; he is the person acting in a
representative capacity.
Agency
Principle
representation
applied

Lease of services
Principle
is employment
applied

of
is

Extinguished at the Concurrence of party

will of the principal
is necessary
Agent
exercise Employee
exercise
discretionary powers ministerial functions
to attain an end
which
he
was
appointed
Preparatory contract

Principal contract

PURPOSEOFAGENCY
The purpose of agency is to extend the
personality of the principal through the
facility of the agent. It enables the activity
of man which is naturally limited in its
exercise by the impositions of his
physiological conditions to be legally
extended by permitting him to be
constructively present in many different

places and to perform diverse juridical acts

and carry on many different activities
through another when physical presence is
impossible or inadvisable at the same time.
ELEMENTS OF AGENCY
Consent
Object
Cause
KINDS OF AGENCY
1. as to manner of creation
a. express one which agent has
been authorized by the principal
in writing
b. implied- one which implied from
the acts of the:
principal- from his silence of
lack of action, or his failure to
repudiate the agency knowing
that another person is acting
on his behalf
agent- when he carries out
agency, from his silence of
inaction according to the
circumstances.
2. as it to the character
a. gratuitous
b. onerous
3. as to extent of business covered
a. general
b. SPECIAL
4. as to authority conferred
a. couchedingeneralterms- one

which is
created in general terms
and is deemed to comprise only acts of
administration;
b. couchedinspecifictermsone
authorizing only the performance of a
specific act or acts.
5.astoitsnatureandeffects
a) ostensibleorrepresentativeone where the
agent acts in the name and in
representation of the principal.
b) simpleorcommissionone where the
agent acts in his own name but for the
account of the principal.

authority
ACTS WHICH MAY BE DELEGATED TO
AN AGENT
GENERAL RULE: What a man may do
in person, he may do thru another,
EXCEPTIONS
personal acts
criminal acts
FORM OF AGENCY
Agency may be express or implied from
the acts of the principal, from his silence
of lack of action or his failure to repudiate
the agency knowing that another person is
acting on his behalf without authority.
GENERAL RULE: there
requirements governing
of an agent. The agents
oral or written. It may
private writing.

a re no formal
the appointment
authority may be
be in public or

EXCEPTION: when the law requires a

specific form
Implied acceptance
De jure agent
Binds the principal
for the acts within
the scope of his

Agency by estoppel
Not really an agent
Only the purported
agent is liable

formofacceptancebyagent

Acceptance by the agent may also be

expressor impliedfrom his acts which carry
out the agency, or from his silence or
inaction according to the circumstances
KindsofImpliedAcceptance
1.WherepersonsarepresentAcceptance
may be implied if:
principal delivers his power of attorney to
the agent and
agent receives it without any objection
2.WherepersonsareabsentAcceptance
cannot be implied from silence of the agent
principal transmits his power of attorney to
the agent, who receives it without any
objection;
principal entrusts to him by letter or
telegram a power of attorney with respect
to the business in which he is habitually
engagedas an agent