1.

Rallos v Felix go chan

Essential Elements of Agency

Agency is extinguished by By the death, civil interdiction, insanity or insolvency of the principal or of the
agent;

Death first by principle, then the agent sells property of the deceased, even without the consent of the
decesead. Thus the actions of the “agent” are unenforceable.

 Essential Elements:

(1) there is consent, express or implied of the parties to establish the relationship;

(2) the object is the execution of a juridical act in relation to a third person;

(3) the agents acts as a representative and not for himself, and

(4) the agent acts within the scope of his authority.

 Extinguishment

o Generally: among others, By the death, civil interdiction, insanity or insolvency of the principal or of
the agent

- death of the principal effects instantaneous and absolute revocation of the authority of the agento
Exceptions: (Art. 1930) if it has been constituted in the common interest of the latter and of the agent,
or in the interest of a third person who has accepted the stipulation in his favor. (Art. 1931) agent
acted without knowledge of the pricipal’s death and that the third person was in good faith (both these
reqs should be present)

2. Loadmasters v. Glodel

A company hiring a broker to oversee transport of goods, that broker hiring a private carrier to transport
said goods.

Private carriers are not agents of their principle, since the private carrier never represented principle.

Neither was the private carrier ever authorized to make such representation. Note in the end the
liability of the private carrier is solidary to its principle, due to its employer-employee relationship.

It is a settled rule that the basis for agency is representation, that is, the agent acts for and on behalf of
the principal on matters within the scope of his authority and said acts have the same legal effect as if
they were personally executed by the principal. On the part of the principal, there must be an actual
intention to appoint or an intention naturally inferable from his words or actions, while on the part of
the agent, there must be an intention to accept the appointment and act on it.

The elements of a contract of agency are:

(1) consent, express or implied, of the parties to establish the relationship;

(2) the object is the execution of a juridical act in relation to a third person;

(3) the agent acts as a representative and not for himself;

(4) the agent acts within the scope of his authority.

3. Yu Eng Clo v. Pan American

Independent travel solicitor (travel agents) are not by nature agents of the airlines.

Thus their liabilities do no extend to the airlines.

The elements of a contract of agency.

4. Tongko v. Manufacturer’s Life Ins.

Person recruited as an “agent” for insurance company, but was dismissed, Person files for illegal
dismissal, company claims he is not an agent or an employee.

Employee vs. Agent- the determinative element is the control exercised over the one rendering service.
The employer controls the employee both in the results and in the means and manner of achieving this
result. The principal in an agency relationship, on the other hand, also has the prerogative to exercise
control over the agent in undertaking the assigned task based on the parameters outlined in the
pertinent laws.

This provision is pertinent for purposes of the necessary control that the principal exercises over the
agent in undertaking the assigned task, and is an area where the instructions can intrude into the labor
law concept of control so that minute consideration of the facts is necessary. A related article is Article
1891 of the Civil Code which binds the agent to render an account of his transactions to the principal.

General law on agency as applied to insurance, an agency must be express in light of the need for a
license and for the designation by the insurance company.

An agency relationship prevails in the insurance industry for the purpose of selling insurance. The
Agreement, by its express terms, is in accordance with the Insurance Code model when it provided for a
principal-agent relationship, and thus cannot lightly be set aside nor simply be considered as an
agreement that does not reflect the parties’ true intent. This intent, incidentally, is reinforced by the
system of compensation the Agreement provides, which likewise is in accordance with the production-
based sales commissions the Insurance Code provides.
Like Tongko, the evidence suggests that these other agents operated under their own agency
agreements. Thus, if Tongko’s compensation scheme changed at all during his relationship with
Manulife, the change was solely for purposes of crediting him with his share in the commissions the
agents under his wing generated. As an agent who was recruiting and guiding other insurance agents,
Tongko likewise moved up in terms of the reimbursement of expenses he incurred in the course of his
lead agency, a prerogative he enjoyed pursuant to Article 1912 of the Civil Code. Thus, Tongko received
greater reimbursements for his expenses and was even allowed to use Manulife facilities in his
interactions with the agents, all of whom were, in the strict sense, Manulife agents approved and
certified as such by Manulife with the Insurance Commission.

Whether an employer-employee exist, four-fold test

Elements are: (1) the selection and engagement of the employee; (2) the payment of wages; (3) the
power of dismissal; and (4) the control test

The elements of a contract of agency.

5. Eurotech v. Cuison

Elements of the contract of agency

6. Litonjua v. Etermit

Persons selling property on behalf of a company, but was not ratified by company, the customer sues for
specific performance. For this to be valid, the principle must have given the agent the special power of
attorney, and such sale be ratified by the principle, without this even a specific performance cannot
compel the sale.

The general principles of agency govern the relation between the corporation and its officers or agents,
subject to the articles of incorporation, by-laws, or relevant provisions of law.

While a corporation may appoint agents to negotiate for the sale of its real properties, the final say will
have to be with the board of directors through its officers and agents as authorized by a board
resolution or by its by-laws. Any sale of real property of a corporation by a person purporting to be an
agent thereof but without written authority from the corporation is null and void.

An agency may be express or implied from the act 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. However, to create or convey real rights
over immovable property, a special power of attorney is necessary. (Art. 1874; 1878)6. In this case,
there was no board resolution clothing Adams, Glanville nor Delsaux the authority to sell the properties.

Agency by estoppel
For an agency by estoppel to exist, the following must be established: (1) the principal manifested a
representation of the agent’s authority or knowingly allowed the agent to assume such authority; (2) the
third person, in good faith, relied upon such representation; (3) relying upon such representation, such
third person has changed his position to his detriment.48 An agency by estoppel, which is similar to the
doctrine of apparent authority, requires proof of reliance upon the representations, and that, in turn,
needs proof that the representations predated the action taken in reliance.

7. Doles v. Angeles

Persons in a deal stating to represent another, means it is an agency.

Agency may even be implied from the words and conduct of the parties and the circumstances of the
particular case.

Though the fact or extent of authority of the agents may not, as a general rule, be established from the
declarations of the agents alone, if one professes to act as agent for another, she may be estopped to
deny her agency both as against the asserted principal and the third persons interested in the
transaction in which he or she is engaged.

For an agency to arise, it is not necessary that the principal personally encounter the third person with
whom the agent interacts. The law in fact contemplates, and to a great degree, impersonal dealings
where the principal need not personally know or meet the third person with whom her agent transacts:
precisely, the purpose of agency is to extend the personality of the principal through the facility of the
agent.