Can a commission agent sell on credit?

> No without consent implied or expressed by the principal.

What happens if the agent sells on credit without consent of the principal?
>Principal can collect from agent payment in cash but agent shall receive interest or benefit resulting
from the sale.

Responsibility of commission agent authorized to sell on credit?

>Inform the principal of the transaction and give list of names of buyers. Failure to do so, sale shall be
deemed made for cash.

Guarantee commission?

>to increase commission, factor or commission agent shall guarantee payments of debts arising
through his agency.

Agent who receives guarantee and ordinary commission

>Shall bear the risk of collection and shall pay the principal the proceeds of the sale o the same terms
agreed upon by the purchaser.

Who has burden of proving agency?

He who claims the agency.

Is the manner in which the parties designate the relationship controlling?

No, Look into the nature of relationship.

Is agency relationship presumed?

No.

Agency v Employment

1. Basis is representation>>Rendering service for compensation

2. Contractual relationship>> Contractual but impressed with public interest

3. To establish juridical relation of principal to third parties>> Render service for the benefit of
employer or emplyer’s business

Agency v Loan

1. Money given by another is money of principal>>>Money advanced from another is money lent

2. Advancement of both>> lender no interest

3. Agent may be given funds by principal to advance latter’s business>> Money lent is for lendee’s
own purpose and must be returned

Factor or commission agent?

>One whose business is to receive and sell goods for commission and who is entrusted by the
principal for the possession of goods to be sold, and usually selling in his own name. May act in his
own name or that of the principal.

Difference of ordinary and commission agent?

>Ordinary agent need not to have possession of the goods of principal, commission agent must have
possession.

Responsibility of commission agent?

>Generally: Commission agent is responsible for the goods received by him in the terms and
conditions and as described in the consignment

>Except: When the agent makes a written statement of the damage and deterioration suffered by the
goods upon receiving them

Responsibility of commission agent to goods of the same kind and mark which belong to different
owners?

>Must distinguish them by countermarks, and designate merchandise respectively to each principal.

Agency v Contract for a piece of work

1. Under control and direction of principal>> One is to accomplish the work in his own method
without control of another on how to do the wok but subject to control for the result of the work

Independent Contracting v Labor only

Contract of Agency v Contract of Sale

1. Agent makes no warranty for goods> Seller makes warranty

2. Thing received by agent is under control of principal>> Buyer can do what he pleases over the thing

3. Agent does not pay the price merely receives it>> Buyer pays the price

Obligations of agent to principal?

> Inform principal of an authorized sale of credit has been made

> To bear risk of collection if agent receives guarantee commission

> Indemnify principal for credits not collect upon being due

> To be responsible for fraud and negligence

Fiduciary nature of principal-agent

>Based on trust and confidence

What is duty of good faith?

>Relies on fiduciary nature of the relationship>Faithful service

Duty of loyalty
> Look out for the best interest of principal