June 9 – Agency Quickies compiled by Marian
A contract is considered not as the
What is the underlying principle of the contract of
agency?
To accomplish the results by using the services of
others; to extend the personality of the principal
As a nominate contract, what are its basic and
peculiar characteristics?
It is personal, representative (no rep in a contract,
he cannot be considered as an agent) and it is
derivative (something obtained/developed from
something else)
May legal possibility without representation be
inferred?
Yes. From the provisions of Article 1883, which
provides of the circumstance that the agent acts
exclusively in his own name.
What is the true essence of the distinction between
lease of service and agency?
The agent enters or is designed to enter into juridical
relations, with or without representation of the
principal. (JBL Reyes, Lawyer’s Journal)
May there be agency in impersonation?
No. The element of representation is absent. On the
rd
part of the 3 person, there is no knowledge that
the contract is on behalf of a person other than the
one before him or with whom he is negotiating.
Can agency be admissible in all contracts or acts?
Not necessarily. There are certain acts which cannot
be performed through an agent such as: the entering
into a marriage contract, the making of wills and
testaments, the presence of the accused during the
trial of a criminal case, the statements required to be
made under oath, the right to vote during an
election, and an act appointed to the agent in person
cannot be delegated to a sub-agent.
Can the mere use of the term “agency” in one
clause dominate the whole contract?
Not necessarily.
parties stipulated, but as they performed it.
Why is it important that the principal have the
capacity required for the act entrusted to the
agent?
It is because he is the one who will receive the
benefits and incur the obligations or losses arising
from therefrom.
May agency be both unilateral and bilateral?
Yes. It may be unilateral if gratuitous because it
creates obligation for one of the parties. It is
bilateral if for compensation, giving rise to reciprocal
rights and obligations.
In the presence of conflicting interests, may an
agent act as one for both parties to the same
transaction?
Yes. 1) when both consent, 2) when he is a
middleman or intermediary, 3) with no independent
alternative, 4) when he acts with knowledge and
consent of both
What is the effect of a person undertaking to act as
agent for another, who has not given his consent?
Reciprocal relations are created by virtue of a quasi-
contract, by which no consent is required and the
obligation arises from law or natural equity.
May knowledge of the agent be imputed to the
principal?
Yes, except when: 1) agent’s interests are adverse to
the principal, 2) agent’s duty is not to disclose the
information as where he is informed by way of
confidential information, 3) where the person
claiming the benefit of the rule colludes with the
agent to defraud the principal.
May agency be created by operation of law?
Yes. For example, agency by estoppel, which creates
a conclusive presumption of an appearance of an
agency.
**In Agency by estoppel, it is very hard to prove the If the termination is made by the principal, it is called
existence of the actual agency; An agent by a revocation. If it is made by the agent, it is called
estoppels is no agent at all withdrawal.

This is not, however, true in negotiorum gestio.
With respect to the effectiveness of the act
executed by the agent on behalf of the principal, is
there a particular capacity required of the agent?
No, so long as he has sufficient intelligence and
freedom of will.
What is an example of a principal that is a juridical
person?
A corporation or partnership acting thru their
officers of such entity as their agent
May the principal avoid the contract entered into
by his agent in favor of a third person on the
ground of his agent’s incapacity?
No. The agent’s personality is only an extension of
the principal. Thus, what is important is the capacity
of the principal and not the agent.
What are the instances where special power of
attorney is required?
1) acts of strict dominion, 2) gratuitous contracts, 3)
contracts where personal trust or confidence is of
the essence of the agreement
May authority be inferred from the fact that the
principal has previously ratified an act of the agent
a different character, or an act done under
substantially different conditions?
No. The implication of authority rests not so much
on the number as on the character of the acts
approved.
Only when can agency by estoppel be invoked?
When the third person knew and relied on the
conduct of the principal

Is there a concept of transferring in a contract of

agency?

Yes. However, it is only possession that is

transferred, but not ownership.

Is the contract of agency the same as sale as to

cause, in that it is also essentially an onerous
contract?

No, but it is presumed to be for compensation,

presumed to be onerous, however, it may be
deemed gratuitous.

What is a feature which would make agency similar

to partnership?

The basis on trust and confidence; there are

fiduciary obligations of an agent as much as there
are fiduciary obligations of a partner

What are the manners of termination in agency?