1. Forms of the contract of agency (Arts.

1869, 1874)

Article 1869. Agency may be express, or implied from the acts of the principal, from his silence or lack of action, or his
failure to repudiate the agency, knowing that another person is acting on his behalf without authority.

Agency may be oral, unless the law requires a specific form. (1710a)

Article 1874. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be
in writing; otherwise, the sale shall be void. (n)

a. Oral
b. Written

Cases:
• Macke v. Camps, G.R. No. 2962, 7 Phil. 553
• Lintonjua v. Eternit Corp., G.R. No. 144805, 490 SCRA 204
• Angeles v. Philippine National Railways, G.R. No. 150128, 500 SCRA 444 (2006)
• Jimenez v. Rabot, G.R. No. L-12579, 38 Phil. 378
• AF Realty v. Dieselman Freight Services, G.R. No. 111448, 373 SCRA 385
• Dizon v. CA, G.R. No. 124741, 32 SCRA 288

2. Distinction from other contracts

a. Employer-employee (Art. 1700)

Article 1700. The relations between capital and labor are not merely contractual. They are so impressed with public
interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on
labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and
similar subjects.

b. Lease of Services (Art. 1644)

Article 1644. In the lease of work or service, one of the parties binds himself to execute a piece of work or to render to the
other some service for a price certain, but the relation of principal and agent does not exist between them. (1544a)

c. Partnership (Art. 1767)

Article 1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing the profits among themselves.

Two or more persons may also form a partnership for the exercise of a profession. (1665a)

d. Guardianship

e. Trust (Art. 1440)

Article 1440. A person who establishes a trust is called the trustor; one in whom confidence is reposed as regards
property for the benefit of another person is known as the trustee; and the person for whose benefit the trust has been
created is referred to as the beneficiary.

f. Sale (Art. 1458)

Article 1458. By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a
determinate thing, and the other to pay therefor a price certain in money or its equivalent.

A contract of sale may be absolute or conditional. (1445a)

g. Independent Contractor (Art. 1713)

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Article 1713. By the contract for a piece of work the contractor binds himself to execute a piece of work for the employer, in
consideration of a certain price or compensation. The contractor may either employ only his labor or skill, or also furnish the material.
(1588a)

h. Negotorium gestio (Arts. 2144, 2145)

Article 2144. Whoever voluntarily takes charge of the agency or management of the business or property of another, without any
power from the latter, is obliged to continue the same until the termination of the affair and its incidents, or to require the person
concerned to substitute him, if the owner is in a position to do so. This juridical relation does not arise in either of these instances:

(1) When the property or business is not neglected or abandoned;

(2) If in fact the manager has been tacitly authorized by the owner.

In the first case, the provisions of articles 1317, 1403, No. 1, and 1404 regarding unauthorized contracts shall govern.

In the second case, the rules on agency in Title X of this Book shall be applicable. (1888a)

Article 2145. The officious manager shall perform his duties with all the diligence of a good father of a family, and pay the damages
which through his fault or negligence may be suffered by the owner of the property or business under management.

The courts may, however, increase or moderate the indemnity according to the circumstances of each case. (1889a)

Cases:
• Dela Cruz v. Northern Theatrical Enterprises, G.R. No. L-7089, 95 Phil. 739
• Shell v. Fireman’s Insurance Co., G.R. No. L-8169, 100 Phil. 757
• Sevilla v. CA, G.R. No. L-41182-3, 160 SCRA 171
• Quiroga v. Parsons Hardware, G.R. No. L-11491, 38 Phil. 501
• Gonzalo Puyat and Sons v. Arco Amusement, G.R. No. L-47538, 72 Phil. 402
• Lim v. People, G.R. No. L-34338, 133 SCRA 333
• Ker v. Lingad, G.R. No. L-20871, 38 SCRA 524

3. Effect of Agency: Integration and Extension

a. Authority to act
b. Agent is not real party-in-interest
c. Notice to agent is notice to principal
d. Bad faith of agent is bad faith of principal

Cases:
 Doles v. Angeles, G.R. No. 149353, 492 SCRA 607
 Uy and Roxas v. CA, G.R. No. 120465, 314 SCRA 76
 Angeles v. Philippine National Railways, G.R. No. 150128, 500 SCRA 444
 Ong v. CA, G.R. No. 119858
 Francisco v. GSIS, G.R. No. L-18287, 7 SCRA 577
 Sunace International v. NLRC, G.R. No. 161757, 480 SCRA 146
 Cosmic Lumber v. CA, G.R. No. 114311, 265 SCRA 168
 Caram v. Laureta, G.R. No. L-18740