Title X.
– AGENCY that the agent may execute such acts as he may
CHAPTER 1 > NATURE, FORM AND KINDS OF
AGENCY
Art. 1868. By the 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. (1709a)
Art. 1869. Agency may be express, or implied from the
acts of the principal, from his silence or lack of action,
or his failure to repudiate the agency, knowing that
another person is acting on his behalf without
authority.
Agency may be oral, unless the law requires a specific
form. (1710a)
Art. 1870. Acceptance by the agent may also be
express, or implied from his acts which carry out the
agency, or from his silence or inaction according to the
circumstances. (n)
Art. 1871. Between persons who are present, the
acceptance of the agency may also be implied if the
principal delivers his power of attorney to the agent
and the latter receives it without any objection. (n)
Art. 1872. Between persons who are absent, the
acceptance of the agency cannot be implied from the
silence of the agent, except:
(1) When the principal transmits his power of attorney
to the agent, who receives it without any objection;
(2) When the principal entrusts to him by letter or
telegram a power of attorney with respect to the
business in which he is habitually engaged as an agent,
and he did not reply to the letter or telegram. (n)
Art. 1873. If a person specially informs another or
states by public advertisement that he has given a
power of attorney to a third person, the latter thereby
becomes a duly authorized agent, in the former case
with respect to the person who received the special
information, and in the latter case with regard to any
person.
The power shall continue to be in full force until the
notice is rescinded in the same manner in which it was
given. (n)
Art. 1874. When a sale of a piece of land or any interest
therein is through an agent, the authority of the latter
shall be in writing; otherwise, the sale shall be void. (n)
Art. 1875. Agency is presumed to be for a
compensation, unless there is proof to the contrary. (n)
Art. 1876. An agency is either general or special.
The former comprises all the business of the principal.
The latter, one or more specific transactions. (1712)
Art. 1877. An agency couched in general terms
comprises only acts of administration, even if the
principal should state that he withholds no power or
consider appropriate, or even though the agency
should authorize a general and unlimited
management. (n)
Art. 1878. Special powers of attorney are necessary in
the following cases:
(1) To make such payments as are not usually
considered as acts of administration;
(2) To effect novations which put an end to obligations
already in existence at the time the agency was
constituted;
(3) To compromise, to submit questions to arbitration,
to renounce the right to appeal from a judgment, to
waive objections to the venue of an action or to
abandon a prescription already acquired;
(4) To waive any obligation gratuitously;
(5) To enter into any contract by which the ownership
of an immovable is transmitted or acquired either
gratuitously or for a valuable consideration;
(6) To make gifts, except customary ones for charity or
those made to employees in the business managed by
the agent;
(7) To loan or borrow money, unless the latter act be
urgent and indispensable for the preservation of the
things which are under administration;
(8) To lease any real property to another person for
more than one year;
(9) To bind the principal to render some service
without compensation;
(10) To bind the principal in a contract of partnership;
(11) To obligate the principal as a guarantor or surety;
(12) To create or convey real rights over immovable
property;
(13) To accept or repudiate an inheritance;
(14) To ratify or recognize obligations contracted
before the agency;
(15) Any other act of strict dominion. (n)
Art. 1879. A special power to sell excludes the power to
mortgage; and a special power to mortgage does not
include the power to sell. (n)
Art. 1880. A special power to compromise does not
authorize submission to arbitration. (1713a)
Art. 2111. A statement in writing by the pledgee that he
renounces or abandons the pledge is sufficient to extinguish
the pledge. For this purpose, neither the acceptance by the
pledgor or owner, nor the return of the thing pledged is
necessary, the pledgee becoming a depositary. (n)
Art. 2112. The creditor to whom the credit has not been
satisfied in due time, may proceed before a Notary Public to
the sale of the thing pledged. This sale shall be made at a
public auction, and with notification to the debtor and the
owner of the thing pledged in a proper case, stating the
amount for which the public sale is to be held. If at the first
auction the thing is not sold, a second one with the same
formalities shall be held; and if at the second auction there is
no sale either, the creditor may appropriate the thing
pledged. In this case he shall be obliged to give an
acquittance for his entire claim. (1872a)
Art. 2113. At the public auction, the pledgor or owner may
bid. He shall, moreover, have a better right if he should offer
the same terms as the highest bidder.
The pledgee may also bid, but his offer shall not be valid if
he is the only bidder. (n)
Art. 2114. All bids at the public auction shall offer to pay
the purchase price at once. If any other bid is accepted, the
pledgee is deemed to have been received the purchase price,
as far as the pledgor or owner is concerned. (n)
Art. 2115. The sale of the thing pledged shall extinguish the
principal obligation, whether or not the proceeds of the sale
are equal to the amount of the principal obligation, interest
and expenses in a proper case. If the price of the sale is more
than said amount, the debtor shall not be entitled to the
excess, unless it is otherwise agreed. If the price of the sale
is less, neither shall the creditor be entitled to recover the
deficiency, notwithstanding any stipulation to the contrary.
(n)
Art. 2116. After the public auction, the pledgee shall
promptly advise the pledgor or owner of the result thereof.
(n)
Art. 2117. Any third person who has any right in or to the
thing pledged may satisfy the principal obligation as soon as
the latter becomes due and demandable.(n)
Art. 2118. If a credit which has been pledged becomes due
before it is redeemed, the pledgee may collect and receive
the amount due. He shall apply the same to the payment of
his claim, and deliver the surplus, should there be any, to the
pledgor. (n)
Art. 2119. If two or more things are pledged, the pledgee
may choose which he will cause to be sold, unless there is a
stipulation to the contrary. He may demand the sale of only
as many of the things as are necessary for the payment of the
debt. (n)
Art. 2120. If a third party secures an obligation by pledging
his own movable property under the provisions of Article
2085 he shall have the same rights as a guarantor under
Articles 2066 to 2070, and Articles 2077 to 2081. He is not
prejudiced by any waiver of defense by the principal
obligor. (n)
Art. 2121. Pledges created by operation of law, such as
those referred to in Articles 546, 1731, and 1994, are
governed by the foregoing articles on the possession, care
and sale of the thing as well as on the termination of the
pledge. However, after payment of the debt and expenses,
the remainder of the price of the sale shall be delivered to
the obligor. (n)
Art. 2122. A thing under a pledge by operation of law may
be sold only after demand of the amount for which the thing
is retained. The public auction shall take place within one
month after such demand. If, without just grounds, the
creditor does not cause the public sale to be held within such
period, the debtor may require the return of the thing. (n)
Art. 2123. With regard to pawnshops and other
establishments, which are engaged in making loans secured
by pledges, the special laws and regulations concerning
them shall be observed, and subsidiarily, the provisions of
this Title. (1873a)
CHAPTER 3 MORTGAGE
Art. 2124. Only the following property may be the object of
a contract of mortgage:
(1) Immovables;
(2) Alienable real rights in accordance with the laws,
imposed upon immovables.
Nevertheless, movables may be the object of a chattel
mortgage. (1874a)
Art. 2125. In addition to the requisites stated in Article
2085, it is indispensable, in order that a mortgage may be
validly constituted, that the document in which it appears be
recorded in the Registry of Property. If the instrument is not
recorded, the mortgage is nevertheless binding between the
parties.
The persons in whose favor the law establishes a mortgage
have no other right than to demand the execution and the
recording of the document in which the mortgage is
formalized. (1875a)
Art. 2126. The mortgage directly and immediately subjects
the property upon which it is imposed, whoever the
possessor may be, to the fulfillment of the obligation for
whose security it was constituted. (1876)
Art. 2127. The mortgage extends to the natural accessions,
to the improvements, growing fruits, and the rents or income
not yet received when the obligation becomes due, and to
the amount of the indemnity granted or owing to the
proprietor from the insurers of the property mortgaged, or in
virtue of expropriation for public use, with the declarations,
amplifications and limitations established by law, whether
the estate remains in the possession of the mortgagor, or it
passes into the hands of a third person. (1877)