Articles 1924-1928

Revocation of Agency
Requisites for the revocation of the
agency
1. It must not be in bad faith
2. Specific persons should be informed
Publication in newspaper of general circulation
Art. 1924
The agency is revoked if the principal directly
manages the business entrusted to the agent
dealing directly with third persons
Implied revocation
When the act of revocation takes place
As to third persons who have previously
known of the power of attorney of the agent
and who have not dealt with the principal
Give notice to the agent
Continued involvement of the principal in the
management of business
When will the revocation in art.
1924 takes effect?
Article 1924 shall have the effect of
revocation when such acts would be
inconsistent with the terms of the
power of attorney previously given to
the agent
CMS Logging v. CA, 211
SCRA 374, G.R. No. 41420
CMS appointed DRACOR as its agent for
the sale of its logs to Japanese firms.
However, during the existence of the
contract of agency, CMS sold its logs
directly to several Japanese firms. This act
constituted an implied revocation of the
contract of agency under Article 1924 of
the Civil Code.


Is the agent entitled for
commission and damages?
No. There is an implied revocation made
by the principal by directly selling the
logs to the Japanese firms, the agent,
therefore, is no longer entitled to the
commission of the proceeds of such
sales. Also, the agent is not entitled for
damages for the case does not fall
under the exception mentioned, which is
to evade the payment of the agent's
commission.
The principal may revoke a contract of
agency at will and such revocation may be
express or implied and may be availed of
even if the period fixed in the contract of
agency has not yet expired. As the
principal has this absolute right to revoke
the agency, the agent can not object
thereto; neither may he claim damages
arising from such revocation, unless it is
shown that such was done in order to
evade the payment of agent's commission.

Rallos v. Yangco 20 Phil
269
The defendant is liable. Having advertised the
fact that Collantes was his agent and having
given them a special invitation to deal with such
agent, it was the duty of the defendant on
the termination of the relationship of
principal and agent to give due and timely
notice thereof to the plaintiffs. Failing to do
so, he is responsible to them for whatever
goods may have been in good faith and
without negligence sent to the agent
without knowledge, actual or constructive,
of the termination of such relationship.
Art. 1925
Revocation by one of two or more
principals
Valid even without the consent of others
Solidarily liable to the agent for all the
consequences of the agency
Art. 1926
A general power of attorney is revoked by a
special one granted to another agent as
regards the special matter involved in the
latter.
Extent of the power contemplated upon the
agent
Contrary to art. 1923
The appointment of a new agent for the same
business or transaction revokes the previous
agency from the day on which notice thereof
was given to the former agent

Dy Buncio and co. V. Ong Guao
Can, et al, 60 Phil 656
The making and accepting of a new
power of attorney, whether it enlarges or
decreases the power of the agent under a
prior power of attorney, must be held to
supplant and revoke the latter when the
two are inconsistent. If the new
appointment with limited powers does not
revoke the general power of attorney, the
execution of the second power of attorney
would be a mere futile gesture.
Art. 1921 & 1927
GR: Principal may revoke an agency at
will(1921)
Exceptions
Bilateral contract depends upon the agency
for its fulfilment
When the agency is the means of fulfilling an
obligation already contracted
If a partner is appointed manager of the
partnership and the removal of the partner
from the management is unjustifiable
When the agency is coupled with an interest

Bilateral Contract
Illustrative Example
A appoints B as his agent in the sale of
television sets in Cebu. B, before accepting
his appointment, informed A that it would be
necessary for her to lease from C a house
where the TV sets were to be stored and
displayed. The lease would be for 6 months.
B then entered into the contract of lease
When the agency is the means of
fulfilling an obligation already
contracted
Illustrative example:
A sold his land to B for 500,000. B paid in
the meantime only for 350,000 but he
agreed to be As agent in the sale of textile
goods manufactured by A. It was further
agreed that Bs eventual commissions would
be used to pay off the balance of his debt.
If a partner is appointed manager of the
partnership and the removal of the
partner from the management is
unjustifiable
Illustrative example:
A, B, C are partners in business. By
common agreement, A was appointed as
manager in the articles of partnership
When the agency is coupled
with interest
Interest possessed by the agent NOT in
the proceeds arising from the exercise
of the power but interest in the subject
matter of the power
A mere statement in the power of
attorney that is coupled with interest is
not enough. In what does such interest
consists must be stated in the power of
attorney.(Del Rosario v. Abad and Abad,
104 Phil 648)
Illustrative example:
Rita borrows from Jose 30,000 and as
security entrust to Jose her new diamond
ring which Jose is authorized to sell if Rita
fails to pay at the time of maturity of the
loan.
Art. 1928
The agent may withdraw from agency
Reason: Involuntary servitude
If without just cause
Must indemnify the principal should he suffer
damage due to the withdrawal of the agent
If with just cause
Cant be held liable
Examples:
- Impossibility of continuing with the agency without
grave detriment to himself(art. 1928)
- Fortuitous event or force majeure

Dela Pea v. Hidalgo, 16 Phil
450
when the agent informs his principal
that for reasons of health and by medical
advice he is about to depart from the place
where he is exercising his trust and where
the property subject to his administration is
situated, abandons the property, turns it
over a third party, without stating when he
may return to take charge of the
administration, renders accounts of its
revenues up to a certain date.
Then, transmits to his principal a general
statement which summarizes and
embraces all the balances of his accounts
since he began to exercise his agency to
the date when he ceased to hold his trust,
and asks that a power of attorney in due
form be executed and transmitted to
another person who substituted him and
took charge of the administration of the
principal's property, it is then reasonable
and just to conclude that the said agent
expressly and definitely renounced his
agency