agency

• Agency


  A relationship which implies a power in an agent to contract with a 3rd person on behalf of a principal
• Basis of agency


  Representation. The acts of the agent on behalf of the principal within the scope of his authority produce the same legal and binding effects as if the principal personally did them
• Agency


  • Representative character
  • Derivative authority
• Purpose of agency


  To extend the personality of the principal through the facility of the agent
• Parties in agency

  • Principal
  • Agent
• Who can be a principal


  The principal may be a natural person or a juridical person. He must be capacitated. The rule is if a person is capacitated to act for himself or in his own right, he can act through an agent
• Agent capacity


  Insofar as 3rd persons are concerned, it is enough that the principal is capacitated; but insofar as his obligations to his principal are concerned, the agent must be able to bind himself
• Essential elements of agency

  • Consent, express or implied
  • Object of the contract is the execution of a juridical act in relation to 3rd persons
  • The agent acts as a representative and not for himself
  • The agent acts within the scope of his authority
• Acts that cannot be done through an agent

  • Personal acts: if personal performance is required by law or public policy or agreement
  • Criminal or illegal acts: attempt to delegate another authority to do an act which, if done by the principal would be illegal, is void
• Nature of relation between principal and agent

  Fiduciary, based on trust and confidence
• Agency


  Basis is representation
• Lease of work/service


  Basis is employment
• Agency


  3 persons are involved: principal, agent & 3rd person
• Lease of work/service


  Only 2 persons involved: lessor and lessee
• Agency


  Commercial or business transactions
• Lease of work/service


  Matters of mere manual or mechanical execution
• Agency


  Agent exercises discretionary powers
• Lease of work/service


  Lessor only performs ministerial functions
• Agency


  Agent represents a capacitated person
• Guardianship


  Guardian represents an incapacitated person
• Agency


  Agent appointed by principal and can be removed by him
• Guardianship

  Guardian appointed by court and stands in loco parentis
• Agency


  Agent subject to directions of principal
• Guardianship

  Guardian not subject to directions of ward but must act for his benefit
• Agency


  Agent can make principal personally liable
• Guardianship


  Guardian has no power to impose personal liability on his ward
• Agency to sell


  Agent receives the goods as the goods of the principal
• Sale


  Buyer receives the goods as owner
• Agency to sell


  Agent delivers proceeds of the sale
• Sale


  Buyer pays the price
• Agency to sell


  Agent can return object in case he is unable to sell to a 3rd person
• Sale


  Generally, buyer cannot return the object sold
• Agency to sell


  Agent in dealing with the thing received is bound to act according to the instructions of his principal
• Sale


  Buyer can deal with the thing as he pleases, being the owner
• Agent


  Represents the principal
• Independent contractor


  Employed by employer
• Agent


  Acts under the control and instructions of the principal
• Independent contractor


  Acts according to his own method
• Agent


  Principal liable for torts committed by agent within scope of authority
• Independent contractor

  Employer not liable for torts committed by independent contractor