Agency: Nature, Form, and Acceptance of Contracts

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AGENCY Chapter One - NATURE AND FORM OF THE CONTRACT

ARTICLE One thousand eight hundred sixty-eight (CONTRACT OF AGENCY)

Contract of Agency, a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.

Agency

· Agency is a relationship where one person (the agent) is allowed to deal or make agreements with other people for another person (the principal).

· Agency is both a contract and a relationship of representation. This means the agent acts for the principal.

. When the agent acts within the authority given, it is as if the principal personally did those actions. The principal is legally bound by them.

. The relationship is based on trust and confidence (fiduciary relationship).

The purpose of agency is to allow the principal to act through another person.

Agency is NOT the same as:

Example

Characteristics of a Contract of Agency

Essential Elements of Agency

Parties to the Contract

Capacity of the Parties

Acts That May Be Delegated

Exceptions:

ARTICLE One thousand eight hundred sixty-nine (KINDS AND FORM OF AGENCY)

KINDS OF AGENCY

FORM OF AGENCY

IMPLIED AGENCY

Example One - Acts of the Principal (Ratification)

Example Two - Principal's Silence or Failure to Object

ARTICLE One thousand eight hundred seventy (ACCEPTANCE BY THE AGENT)

ARTICLE One thousand eight hundred seventy-four (SALE OF LAND THROUGH AN AGENT)

ARTICLE One thousand eight hundred seventy-five (PRESUMPTION OF COMPENSATION)

ARTICLE One thousand eight hundred seventy-six (ACCEPTANCE BY THE AGENT)

CLASSIFICATION OF AGENTS

ARTICLE One thousand eight hundred seventy-seven (AUTHORITY CONFERRED)

AGENCY COUCHED IN GENERAL TERMS It includes only acts of administration, meaning:

ARTICLE ONE THOUSAND eight hundred seventy-eight (SPECIAL POWERS OF ATTORNEY)

ARTICLE ONE THOUSAND eight hundred eighty-one (AGENT MUST ACT WITHIN AUTHORITY)

ARTICLE ONE THOUSAND eight hundred eighty-two (AGENT MUST ACT WITHIN AUTHORITY)

AUTHORITY OF AN AGENT

WHEN IS THE PRINCIPAL BOUND BY THE ACT OF THE AGENT?

ARTICLE ONE THOUSAND eight hundred eighty-three (AGENT ACTING IN HIS OWN NAME)

KINDS OF PRINCIPAL

Chapter two - OBLIGATIONS OF THE AGENT

ARTICLE ONE THOUSAND eight hundred eighty-four (AGENT'S DUTY TO PERFORM AND FINISH BUSINESS)

ARTICLE ONE THOUSAND EIGHT HUNDRED EIGHTY-FIVE (DUTY WHEN AGENCY IS DECLINED)

ARTICLE ONE THOUSAND EIGHT HUNDRED EIGHTY-SIX (ADVANCING FUNDS)

ARTICLE ONE THOUSAND EIGHT HUNDRED EIGHTY-SEVEN (FOLLOWING INSTRUCTIONS)

ARTICLE ONE THOUSAND EIGHT HUNDRED EIGHTY-EIGHT (AGENT MUST AVOID HARM TO PRINCIPAL)

Reason

ARTICLE ONE THOUSAND EIGHT HUNDRED EIGHTY-NINE (CONFLICT OF INTEREST)

Reason

Recall

ARTICLE ONE THOUSAND EIGHT HUNDRED NINETY (BORROWING OR LENDING MONEY)

Notes

Reason

ARTICLE ONE THOUSAND EIGHT HUNDRED NINETY-ONE (RENDERING ACCOUNTS)

Example:

Question and Answer

ARTICLE ONE THOUSAND EIGHT HUNDRED NINETY-TWO (APPOINTMENT OF A SUBSTITUTE)

Notes

ARTICLE ONE THOUSAND EIGHT HUNDRED NINETY-THREE (ACTION AGAINST SUBSTITUTE)

Notes

Scenarios

ARTICLE ONE THOUSAND EIGHT HUNDRED NINETY-SEVEN (LIABILITY OF AGENT)

ARTICLE ONE THOUSAND EIGHT HUNDRED NINETY-EIGHT (AGENT EXCEEDING AUTHORITY)

Exceptions to Exceptions:

Chapter THREE - OBLIGATIONS OF THE PRINCIPAL

ARTICLE ONE THOUSAND NINE HUNDRED TEN (PRINCIPAL'S DUTY TO COMPLY WITH AGENT'S CONTRACTS)

ARTICLE ONE THOUSAND NINE HUNDRED TWELVE (ADVANCING AND REIMBURSING FUNDS)

Notes

Clarification

Effect

Reason

ARTICLE nineteen thirteen. Indemnity for damages

Notes

Example:

ARTICLE nineteen fourteen. Right to retain as pledge

Pays indemnity for damages.

Chapter four. Modes of extinguishment of agency

Modes of Extinguishing an Agency

Notes

Other Modes of Extinguishment

ARTICLE nineteen twenty. Revocation of agency

Exception

Notes

Implied revocation

ARTICLE nineteen twenty-three. Appointment of a new agent

Notes

Example

ARTICLE nineteen twenty-four. Revocation by direct management

Notes

Example

ARTICLE nineteen twenty-seven. Exception to revocation at will

General Rule

Exception

Additional Rules

Example:

Two. Fulfilling an obligation example

interest

ARTICLE nineteen twenty-eight. Withdrawal of agent

Liability

ARTICLE nineteen thousand two hundred twenty-nine (DUTY TO CONTINUE UNTIL PRINCIPAL IS READY)

ARTICLE nineteen thousand two hundred thirty (AGENCY SURVIVING THE DEATH OF THE PRINCIPAL)

Reason

Exceptions:

Example

ARTICLE nineteen thousand two hundred thirty-one (EFFECT OF AGENT'S ACTIONS WITHOUT KNOWLEDGE OF TERMINATION)

Notes

Correlates with ARTICLE eighteen thousand eight hundred eighty-four - the agent must finish business already started if delay could cause danger.

ARTICLE nineteen thousand two hundred thirty-two (DUTY OF AGENT'S HEIRS)

Notes

Overview

The text serves as an extensive overview of agency law, explaining the contractual relationship between agents and principals, the essential elements of agency, and the types of agency. It illustrates the legal implications of actions taken by agents on behalf of principals.

Key Points

1Agency is a contractual relationship allowing one person to act on behalf of another
2The agent's actions within granted authority bind the principal
3Agency can be express or implied, and may require a specific form
4Agents must act within the scope of their authority for their actions to be valid
5A Special Power of Attorney is necessary for certain significant acts involving property.

Details

Category: Law and Legal Studies

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