Contract of Agency: Nature, Form, and Essential Elements

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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).

Notes

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

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

Notes

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

Notes

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

Notes

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

Notes

CLASSIFICATION OF AGENTS

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

Notes

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

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

Notes

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?

Notes

ARTICLE ONE thousand eight hundred eighty-three AGENT ACTING IN HIS OWN NAME

KINDS OF PRINCIPAL

Notes

Chapter Two - OBLIGATIONS OF THE AGENT

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

Notes

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

Notes

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

Notes

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

Notes

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

ARTICLE nineteen thirteen: Indemnity for Damages

Notes

Example:

ARTICLE nineteen fourteen: Right to Retain as Pledge

Notes

Definition: A pledge is a contract where a movable or document is delivered to secure a debt or obligation.

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 hundred twenty-nine (DUTY TO CONTINUE UNTIL PRINCIPAL IS READY)

ARTICLE Nineteen hundred thirty (AGENCY SURVIVING THE DEATH OF THE PRINCIPAL)

Reason

Example

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

Notes

Example:

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

Notes

Overview

The document explores the concept of agency, emphasizing its significance as a fiduciary relationship and a legal contract that enables one person to act on behalf of another. It discusses various forms of agency, essential elements, and the distinction between different types of agents.

Key Points

1Agency is a relationship where one person acts on behalf of another with their consent
2An agent can legally bind the principal in contracts if acting within their authority
3Agency can be express or implied, and must be in writing for real property transactions
4The document categorizes agents into universal, general, and special agents based on authority
5For an agency to exist, there must be mutual consent between the principal and the agent

Details

Category: Law and Legal Studies

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