CLV on Agency

8/11/2019 CLV on Agency

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CESAR L. VILLANUEVAI. DEFINITION AND OBJECTIVE OF A CONTRACT OF

AGENCY

a. Definition

Article 1868 of te Ci!il Co"e "efi#e$ te co#tr%ct of%&e#c' %$ o#e (ere)' *% +er$o# )i#"$ i,$elf to re#"er $o,e$er!ice or to "o $o,eti#& i# re+re$e#t%tio# or o# )e%lf of%#oter- (it te co#$e#t or %torit' of te l%tter.*/10

b. Purpose or Objective of Agency

I# Eurotech Industrial Technologies, Inc. v. Cuizon, 21SCRA 83 42557- te Cort el"

I# % co#tr%ct of %&e#c'- % +er$o# )i#"$ i,$elf to re#"er$o,e $er!ice or to "o $o,eti#& i# re+re$e#t%tio# or o# )e%lf of%#oter (it te l%tter9$ co#$e#t. Te #"erl'i#& +ri#ci+le of teco#tr%ct of %&e#c' i$ to %cco,+li$ re$lt$ )' $i#& te $er!ice$of oter$ to "o % &re%t !%riet' of ti#&$ li:e $elli#&- )'i#&-,%#f%ctri#&- %#" tr%#$+orti#&. It$ +r+o$e i$ to e;te#" te

+er$o#%lit' of te +ri#ci+%l or te +%rt' for (o, %#oter %ct$%#" fro, (o, e or $e "eri!e$ te %torit' to %ct. 4%t +.


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4c7 Te %&e#t %ct$ %$ % re+re$e#t%ti!e %#" #ot for i,$elf=%#"

4"7 Te %&e#t %ct$ (iti# te $co+e of i$ %torit'./30

!" Consent

Co#$e#t of )ot +ri#ci+%l %#" %&e#t i$ #ece$$%r' to cre%te%# %&e#c'. Te +ri#ci+%l ,$t i#te#" t%t te %&e#t $%ll %ct fori,= te %&e#t ,$t i#te#" to %cce+t te %torit' %#" %ct o# it-%#" te i#te#tio# of te +%rtie$ ,$t fi#" e;+re$$io# eiter i#

(or"$ or co#"ct )et(ee# te,.iton!ua, "r. v. Eternit Corp.,3


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Or"i#%ril'- %# %&e#c' i$ o#ero$ i# #%tre- (ere te%&e#c' e;+ect$ co,+e#$%tio# for i$ $er!ice$ i# te for, of $%'co,,i$$io#$. o(e!er- Article 18 recoi>e$ t%t %# %&e#c',%' )e $++orte" )' +re li)er%lit'- %#" t$ (ol" )e&r%tito$- )t te )r"e# of +roof (ol" )e to $o( t%t te%&e#c' (%$ co#$titte" &r%tito$l'.

@e# it i$ &r%tito$- te co#tr%ct of %&e#c' i$ #il%ter%lco#tr%ct )ec%$e it o#l' cre%te$ %# o)li&%tio# o# te +%rt of te%&e#t. Bt e!e# (e# it i$ $++orte" )' % !%l%)le co#$i"er%tio#

4i.e.- co,+e#$%te" or o#ero$ %&e#c'7- it (ol" $till )ec%r%cteri>e" %$ % #il%ter%l co#tr%ct- )ec%$e it i$ o#l' teflfill,e#t of te +ri,%r' o)li&%tio#$ of te %&e#t to re#"er$o,e $er!ice +o# (ic te $)or"i#%te o)li&%tio# of te

+ri#ci+%l to +%' te co,+e#$%tio# %&ree" +o# %ri$e$.

@e# %# %&e#t %cce+t$ te %&e#c' +o$itio# (itotco,+e#$%tio#- e %$$,e$ te $%,e re$+o#$i)ilit' to c%rr' otte %&e#c' %#" terefore i#cr$ te $%,e li%)ilit' (e# e f%il$to flfill i$ o)li&%tio#$ to te +ri#ci+%l. o(e!er- #"er Article1


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te +ri#ci+%l= e ,$t coo$e to te )e$t %"!%#t%&e ofte +ri#ci+%l. Tho$as v. %ineda- 8< il. ?12 41


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I# +ela Cruz v. orthern Theatrical Enterprises-


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re&%r"le$$ %$ to (eter e %" or %" #ot $ol" te )e"$. 4%t +.57

A$ % co#$ee#ce- te *re!oc%tio#* $o&t to )e ,%"e )'te +ri#ci+%l o# te +r+orte" %&e#c' %rr%#&e,e#t (%$ "e#ie"

)' te Cort- te rel%tio#$i+ )ei#& o#e of $%le- %#" te +o(er tore$ci#" i$ %!%il%)le o#l' (e# te +r+orte" +ri#ci+%l i$ %)le to$o( $)$t%#ti%l )re%c o# te +%rt of te +r+orte" %&e#t.

@e# te ter,$ of te %&ree,e#t co,+el$ te +r+orte"%&e#t to +%' for te +ro"ct$ recei!e" fro, te +r+orte"

+ri#ci+%l (iti# te $ti+l%te" +erio"- e!e# (e# tere %$ )ee##o $%le tereof to te +)lic- te #"erl'i#& rel%tio#$i+ i$ #oto#e of co#tr%ct of %&e#c' to $ell- )t o#e of %ct%l $%le. A re%l%&e#t "oe$ #ot %$$,e +er$o#%l re$+o#$i)ilit' for te +%',e#t ofte +rice of te o)ect of te %&e#c'= i$ o)li&%tio# i$ ,erel' totr#o!er to te +ri#ci+%l te +rocee"$ of te $%le o#ce erecei!e$ te, fro, te )'er. Co#$ee#tl'- $i#ce te#"erl'i#& %&ree,e#t i$ #ot %# %&e#c' %&ree,e#t- it c%##ot )ere!o:e" e;ce+t for c%$e. 0uiroga v. %arsons- ?8 il 5241e" to +rc%$e fro, %$++lier i# te U#ite" St%te$- te #"erl'i#& %&ree,e#t i$ #ot %#co#tr%ct of %&e#c' to )'- $i#ce %# %&e#t "oe$ #ot )e%r %#' ri$:rel%ti#& to te $)ect ,%tter or te +rice. Bei#& trl' % co#tr%ctof $%le- %#' +rofit$ re%li>e" )' te +r+orte" %&e#t fro,"i$co#t$ recei!e" fro, te A,eric%# $++lier- +ert%i# to it (it

#o o)li&%tio# to %cco#t for it- ,c le$$ to tr# it o!er- to te+r+orte" +ri#ci+%l. (onzalo %u*at v. Arco- 2 il. 352 41%tio# &i!e# tote )'er of &oo"$ to o)t%i# te, fro, te )%ilee *for %#" i#

)e%lf* of te )%ilor$eller "oe$ #ot #ece$$%ril' e$t%)li$ %#%&e#c'- $i#ce te i#te#tio# of te +%rtie$ (%$ for te )'er tot%:e +o$$e$$io# %#" o(#er$i+ o!er te &oo"$ (it te "eci$i!el%#&%&e i# te %tori>%tio# )ei#& *$ol" %#" e#"or$e".*

A$ % &e#er%l rle- %# %&e#c' to $ell o# co,,i$$io# )%$i"oe$ #ot )elo#& to %#' of te co#tr%ct$ co!ere" )' Article$ 1?%#" 1?8 reiri#& te, to )e i# % +%rticl%r for,- %#" #ot o#ee#,er%te" #"er te St%tte$ of Fr%"$ i# Article 135?. e#ce#li:e % $%le co#tr%ct (ic ,$t co,+l' (it te St%tte ofFr%"$ for e#force%)ilit'- % co#tr%ct of %&e#c' to $ell i$ !%li" %#"e#force%)le i# (%te!er for, it ,%' )e e#tere" i#to. i$ vCourt of Appeals- 23 SCRA 15 41


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Strictl' $+e%:i#&- % )ro:er i$ o#e (o i$ e#&%&e" for oter$o# % co,,i$$io# to #e&oti%te )et(ee# oter +%rtie$- #e!er %cti#&i# i$ o(# #%,e )t i# te #%,e of to$e (o e,+lo'e" i,.

Re*es v. Rural 'an- of San iguel- 323 SCRA 1? 425537. e%$ #o rel%tio# (it te ti#& e %$ )ee# ret%i#e" to )' or to$ell= e i$ ,erel' %# i#ter,e"i%r' )et(ee# te +rc%$er %#" te!e#"or. e %cire$ #eiter te c$to"' #or te +o$$e$$io# of teti#& e $ell$. i$ o#l' office i$ to )ri#& to&eter te +%rtie$ tote tr%#$%ctio#. %acific Co$$ercial Co. v. 6atco- 6? il. ?


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/10See Che$phil E)port v. Court of Appeals - 21 SCRA 2141


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%##ot%te" ri&t of re+rc%$e o# teir title- %#" +o$$e$$io# %")ee# &i!e# to te $eller$ % retro "ri#& te $%,e +erio"- te# *%#i,+lie" %&e#c' ,$t )e el" to %!e )ee# cre%te" fro, teir$ile#ce or l%c: of %ctio#- or teir f%ilre to re+"i%te te %&e#c'.*

)" Agency Not Presu%e# to E2ist

Alto& %# %&e#c' co#tr%ct i$ co#$e#$%l i# #%tre %#"&e#er%ll' reire$ #o for,%lit'- te Cort %$ $tre$$e" t%t %#%&e#c' %rr%#&e,e#t i$ #e!er +re$,e". opez v. Tan Tioco- 8il. 6


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III. INDS OF AGENCY

a. 1ase# on t&e 1usiness or Transactions

Enco%passe#

U#"er Article 186- %# %&e#c' i$ ter,e" to )e % *&e#er%l%&e#c'* (e# it e#co,+%$$e$ %ll of te )$i#e$$ of te +ri#ci+%l.Te )etter ter, for $c %# %&e#c' (ol" )e % *#i!er$%l%&e#c'.*

A +o(er of %ttor#e' (ic +ro!i"e$ t%t *Ti$ i$ tofor,%li>e or %&ree,e#t for 'o to re+re$e#t U#ite" Fl%&I#"$tr' to "e%l (it %#' e#tit' or or&%#i>%tio#- +ri!%te or&o!er#,e#t- i# co##ectio# (it te ,%r:eti#& of or +ro"ct$fl%&$ %#" %ll it$ %cce$$orie$. For 'or $er!ice$- 'o (ill )ee#title" to % co,,i$$io# of ?5=* %tori>e$ te %&e#t to e#teri#to co#tr%ct of $%le o!er te +ro"ct$ co!ere" %#" for (ic e(ol" )e e#title" to recei!e co,,i$$io#$ $ti+l%te". *A &e#er%l%&e#t $%ll' %$ %torit' eiter e;+re$$l' co#ferre" i# &e#er%lter,$ or i# effect ,%"e &e#er%l )' te $%&e$- c$to,$ or #%treof te )$i#e$$ (ic e i$ %tori>e" to tr%#$%ct.* Siasat v*

+ntermediate !ppellate Court3 !(4 *CRA '(5 !45-".

O# te oter %#"- it i$ % *$+eci%l %&e#c'* (e# it co!er$o#l' o#e or ,ore $+ecific tr%#$%ctio#$. Te )etter ter, for $c%# %&e#c' i$ *+%rticl%r %&e#c'.*

Sc cl%$$ific%tio#$ %re ,ore %c%"e,ic t%# +r%ctic%l-$i#ce ot$i"e of &%r"i%#$i+ +rocee"i#&$- %r"l' %#')o"' i# te,o"er# (orl" e,+o(er$ %# %&e#t to co!er e!er' )$i#e$$ %$+ecto(#e" )' te +ri#ci+%l. Be$i"e $c % cl%$$ific%tio# i$ #ot re%ll'$efl )ec%$e % *&e#er%l or #i!er$%l %&e#c'* c%# )' l%( o#l'co!er &e#er%l +o(er$ of %ttor#e' co!eri#& ,erel' %ct$ of%",i#i$tr%tio#= %#" c%##ot- (itot e;+re$$ or "et%ile""e$cri+tio#- co!er $+eci%l +o(er$ of %ttor#e'- co!eri#& +%rticl%r%ct$ of $trict o(#er$i+. Terefore- % &e#er%l %&e#c' i$ )etter%cie!e" )' oter co#tr%ct%l for,$ $c %$ % co#tr%ct of

e,+lo',e#t. Te ri&t of %# %&e#t to i#"or$e % co,,erci%l +%+er i$#e!er +re$,e" to e;i$t$= it ,$t )e cle%rl' &r%#te" )' te

+ri#ci+%l. A $%le$,%# (it %torit' to collect ,o#e' )elo#&i#&to te +ri#ci+%l "oe$ #ot %!e i,+lie" %torit' to i#"or$e tecec:$ recei!e" i# +%',e#t. A#' +er$o# t%:i#& cec:$ +%'%)leto % cor+or%tio# tro& te e#"or$e,e#t of %# %&e#t- "oe$ $o %ti$ +eril %#" ,$t %)i"e )' te co#$ee#ce$ if te %&e#t (oi#"or$e$ te $%,e i$ (itot %torit'. +nsular -rug Co* v*

PN'3 -5 P&i$ 65) !4((".

Ro1inson #le$ing v. Cruz-


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IV. AUTORITY K O@ER- DUTIES K OBLIGATIONS- OFTE AGENT

!. GENERAL O1LIGATION O: AGENT 7O ACCEPT* TE

AGENC;

U#"er Article 1883- (e# %# %&e#t %cce+t$ te %++oi#t,e#t ofte +ri#ci+%l- te# e i$ le&%ll' )o#" to c%rr' ot te ter,$ ofte %&e#c'= oter(i$e- e i$ li%)le for "%,%&e$ $ffere" )' te

+ri#ci+%l )' re%$o# of i$ #o#fe%$%#ce or #o#+erfor,%#ce.Article 1883 e;+re$$e$ i# te re%l, of A&e#c' te co#tr%ct l%(

+ri#ci+le$ of consensualit*- $utualit* %#" o1ligator* forcee;+re$$e" i# Article$ 11< %#" 1?1 of te Ci!il Co"e- (ic

+ro!i"e t%t O)li&%tio#$ %ri$i#& fro, co#tr%ct$ %!e te forceof l%( )et(ee# te co#tr%cti#& +%rtie$ %#" $ol" )e co,+lie"(it i# &oo" f%it-H %#" t%t Co#tr%ct$ %re +erfecte" )' ,ereco#$e#t- %#" fro, t%t ,o,e#t te +%rtie$ %re )o#" #ot o#l' tote flfill,e#t of (%t %$ )ee# e;+re$$l' $ti+l%te" )t %l$o to%ll te co#$ee#ce$ (ic- %ccor"i#& to teir #%tre- ,%' )e i#:ee+i#& (it &oo" f%it- $%&e %#" l%(.H Li:e(i$e- Article 1?6of te Ci!il Co"e +ro!i"e$ t%t Co#tr%ct$ $%ll )e o)li&%tor'- i#(%te!er for, te' ,%' %!e )ee# e#tere" i#to- +ro!i"e" %ll te

e$$e#ti%l rei$ite$ for teir !%li"it' %re +re$e#t.H Fi#%ll'- Article1?58 +ro!i"e$ t%t te co#tr%ct ,$t )i#" )ot co#tr%cti#&

+%rtie$= it$ !%li"it' or co,+li%#ce c%##ot )e left to te (ill ofo#e of te,.H

De$+ite te o)li&%tor' #%tre of e!er' co#tr%ct of %&e#c'- #otet%t Article 1883 e,+%$i>e$ te +oi#t t%t (e# %# %&e#tref$e$ to co,+l' (it te o)li&%tio#$ e %cce+te" for i,$elf-te re,e"' of te +ri#ci+%l i$ to $e i, for "%,%&e$- $i#ce %#%ctio# for $+ecific +erfor,%#ce i$ #ot %!%il%)le for +er$o#%lo)li&%tio#$ to "o or #ot to "o. Te li%)ilit' of %# %&e#t for"%,%&e$ (e# e f%il$ to c%rr' ot i$ o)li&%tio#$ i$ co#$i$te#t(it te ter,$ of Article 115 of te Ci!il Co"e (ic +ro!i"e$t%t To$e (o i# te +erfor,%#ce of teir o)li&%tio#$ %re&ilt' of fr%"- #e&li&e#ce- or "el%'- %#" to$e (o i# %#',%##er co#tr%!e#e te te#or tereof- %re li%)le for "%,%&e$.HTi$ $%,e +ri#ci+le i$ e;+re$$e" i# Article 1


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a. Duty of Obe#ience

!"!s 'eteen the Principal and the !gent

T%t te %&e#t ,$t %ct (iti# te $co+e of i$ %torit'H,e%#$ t%t t%t e!er' %&e#t %$$,e$ )' i$ %cce+t%#ce of te%&e#c' to )e o)e"ie#t to te (ill of te +ri#ci+%l- (ic i$ )e$te;+re$$e" #"er Article 188 (e# it +ro!i"e$ t%t /i0# tee;ectio# of te %&e#c'- te %&e#t $%ll %ct i# %ccor"%#ce (itte i#$trctio#$ of te +ri#ci+%l.H Tere i$ #o "o)t t%t (e# %#%&e#t co,+lie$ (it te i#$trctio#$ of i$ +ri#ci+%l- e i$ %cti#&(iti# te $co+e of i$ %torit'.

A$ el" i# ictorias illing Co., Inc. v. Court of Appeals- ???SCRA 66? 425557- o#e f%ctor t%t ,o$t cle%rl' "i$ti#&i$e$ %#%&e#c' fro, oter le&%l co#ce+t$- i#cl"i#& $%le- i$ control: o#e

+er$o#Hte %&e#tPH%&ree$ to %ct #"er te co#trol or "irectio#of %#oterPHte +ri#ci+%l. It i$ cle%r terefore- t%t (e# %#%&e#t %ct$ i# %ccor"%#ce (it te +ri#ci+%l$ i#$trctio#- e i$%cti#& (iti# te $co+e of i$ %torit'.

Olaguer v* Purugganan/ 0r*3 -!- *CRA )69 '998"- el" t%t#"er Article 1882 of te Ci!il Co"e te li,it$ of %# %&e#t$%torit' $%ll #ot )e co#$i"ere" e;cee"e" $ol" it %!e )ee#

+erfor,e" i# % ,%##er %"!%#t%&eo$ to te +ri#ci+%l t%# t%t

$+ecifie" )' i,.

)an )iong v* S#C3 64 P&i$ )'- !4)9"- el" t%t te %&e#t i$ #ot"ee,e" to %!e e;cee"e" i$ %torit' $ol" e +erfor, te%&e#c' i# % ,%#%&er ,ore %"!%#t%&eo$ to te +ri#ci+%l t%#t%t i#"ic%te" )' te +ri#ci+%l. T$- (e# te %&e#t $ell$ te c%rof te +ri#ci+%l for ,ore t%# te %,o#t i#"ic%te" )' te

+ri#ci+%l- te# e %$ #ot i$ %torit' )ec%$e % i&er +rice i$,ore %"!%#t%&eo$ to te +ri#ci+%l.

No#etele$$- %&e#c' rel%tio# i$ e#tere" i#to ,%i#l' for )$i#e$$or co,,erci%l !e#tre$- %#" it i$ #ot e;+ecte" t%t te +ri#ci+%lc%# co!er e!er co#ti#&e#cie$ (it $+ecific i#$trctio#$- or t%te!er' %ct of te %&e#t ,$t )e )%$e" o# "et%ile" i#$trctio#$ of

te +ri#ci+%l. I#"ee"- te %&e#t i$ e;+ecte" to $e i$ )$i#e$$"i$cretio# %$ t%t of te +ri#ci+%l (ol" or col" if +er$o#%ll'+re$e#t. Terefore- (e $ol" co#$i"er te +ri#ci+%l$i#$trctio#$ %$ te li,it of %# %&e#t$ +o(er= %#" t%t i# te%)$e#ce of li,iti#& i#$trctio#$- it i$ e;+ecte" t%t te %&e#t $e$i$ )e$t "&,e#t to $t%' (iti# te $co+e of te +ri#ci+%l$%torit' &r%#te" to i,

Ti$ +ri#ci+le i$ )e$t e;+re$$e" #"er Article 1881- (ic+ro!i"e$ t%t te %&e#t %#' "o $c %ct$ %$ ,%' )e co#"ci!e tote %cco,+li$,e#t of te +r+o$e of te %&e#c'.H Li:e(i$e-Article 1882 +ro!i"e$ t%t /t0e li,it$ of te %&e#t$ %torit'$%ll #ot )e co#$i"ere" e;cee" $ol" it %!e )ee# +erfor,e" i#% ,%##er ,ore %"!%#t%&eo$ to te +ri#ci+%l t%# t%t $+ecifie"

)' i,.H I# oter (or"$- %# %&e#t #ot o#l' %$ e;+re$$ +o(er$-)t %l$o i,+lie" +o(er$ e,%#%ti#& fro, te e;+re$$ +o(er$&r%#te" to i,= %$ (ell %$ i#ci"e#t%l +o(er$ #ece$$%r' i# or"erto %cie!e te +r+o$e for (ic te %&e#c' (%$ co#$titte".

'"!s )o )hird Parties

Te ter,$ of Article 188 (ic effecti!el' $t%te$ t%t (e# %#%&e#t %ct$ co#tr%r' to te i#$trctio#$ of i$ +ri#ci+%l- e i$"ee,e" to %!e %cte" (itot or i# e;ce$$ of %torit'- i$ rlet%t &o!er#$ te rel%tio#$i+ )et(ee# te +ri#ci+%l %#" %&e#t.U#"er Article 1


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!"!s 'eteen the Principal and the !gent

U#"er Article 188- it i$ te o)li&%tio# of e!er' %&e#t (o%cce+t$ te %&e#c' to %ct i# %ccor"%#ce (it te i#$trctio#$ ofte +ri#ci+%l- %#" i# "ef%lt tereof- to "o %ll t%t % &oo" f%terof % f%,il' (ol" "o %$ reire" )' te #%tre of te )$i#e$$. I#te $%,e ,%##er- Article 1e" o(e!er- t%t (e# te %&e#t %ct$ i#%ccor"%#ce (it te i#$trctio#$ of te +ri#ci+%l- te %&e#tc%##ot )e "ee,e" to %!e %cte" i# fr%" %&%i#$t te +ri#ci+%l or

to %!e %cte" #e&li&e#tl'- e!e# (e# "%,%&e (%$ c%$e" to te+ri#ci+%l. T$ Article 18


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Te rle$ #"er Article 1?1 %re $++orte" #"er Article 135?-(ic i#cl"e$ %,o#& to$e cl%$$ifie" %# #e#force%)leco#tr%ct$-H 417 To$e e#tere" i#to i# te #%,e of %#oter +er$o#

)' o#e (o %$ )ee# &i!e# #o %torit' or le&%l re+re$e#t%tio#-or (o %$ %cte" )e'o#" i$ +o(er.H

S+ecific%ll'- #"er te L%( o# A&e#c'- Article 18


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il. 2? 41


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V. RULES OF @AT O@ERS AY BE VALIDLYEQERCISED BY TE AGENY

a. Genera$ Ru$e on Po/er of A#%inistration

I# te %)$e#ce of te &r%#t of $+eci%l +o(er of %ttor#e' to te%&e#t- e i$ "ee,e" to %!e )ee# e;te#"e" o#l' % &e#er%l +o(erof %ttor#e' )' te +ri#ci+%l- %#" i$ +o(er$ c%# o#l' co!er %ct$of %",i#i$tr%tio#. T$- #"er Article 18- e!er' %&e#c'

coce" i# &e#er%l ter,$ c%# o#l' )e co#$tre" %$ &r%#ti#& tote %&e#t te +o(er to e;ecte %ct$ of %",i#i$tr%tio#- e!e# if te+ri#ci+%l

4%7 St%te$ t%t e (itol"$ #o +o(er fro, te %&e#t=

4)7 St%te$ t%t te %&e#t ,%' e;ecte %ct$ e co#$i"er$%++ro+ri%te= or

4c7 Atori>e$ &e#er%l %#" #li,ite" ,%#%&e,e#t

Act$ of %",i#i$tr%tio# %$ te $%,e co,,erci%l %#" le&%l$iific%#ce %$ to %ct i# te or"i#%r' cor$e of )$i#e$$.H Fore;%,+le- te ri&t to $e for te collectio# of "e)t o(i#& to te

+ri#ci+%l i$ "ee,e" not%# i#ci"e#t of $trict o(#er$i+ (ic

,$t )e co#ferre" i# e;+re$$ ter,$. 6erman 5 Co* v*-onaldson/ Sim 5 Co*3 ! P&i$. 6( !49!".

A# %ttor#e'i#f%ct e,+o(ere" to +%' te "e)t$ of te +ri#ci+%l%#" to e,+lo' le&%l co#$el to "efe#" te +ri#ci+%l$ i#tere$t-%$ cert%i#l' te i,+lie" +o(er to +%' o# )e%lf of te +ri#ci+%lte %ttor#e'$ fee$ c%r&e" )' te l%('er.unicipal Council of

Iloilo v. Evangelista- il 2


18/42

it (it re$+ect to it$ "e e;ectio#. 1eloso v* Court of !ppeals3'69 *CRA -4( !446".

'" Construction Rules on Poers of !ttorney

T%t % +o(er of %ttor#e' )e i# (riti#& $ee,$ to )e ,ore critic%lto te co#$tittio# of % $+eci%l +o(er of %ttor#e'- t%# to %&e#er%l +o(er of %ttor#e'. I# )ot t'+e$ of %&e#cie$- )ec%$e ofte %)$e#ce of % (ritte# e!i"e#ce- te )r"e# of +roof to $o(t%t tere i$ i#"ee" % co#tr%ct of %&e#c' i$ o# te +%rt of te

+er$o# (o +r+ort$ to %ct for %#" i# )e%lf of % +ri#ci+%l- %#"e!e# te# tir" +%rtie$ %re "irecte" to e#$re te #%tre %#"e;te#t of te %&e#t$ +o(er. Bt if (%t (%$ co#$titte" (%$ %&e#er%l +o(er of %ttor#e'- it co!er$ ,erel' %ct$ of%",i#i$tr%tio#- %#" terefore tir" +%rtie$ (ol" )e le$$ (%r't%t te co#tr%ct or tr%#$%ctio# te' e#tere" i#to i$ #ot (iti# te

+o(er$ of te %&e#t. O# te oter %#"- (e# (%t (%$co#$titte" (%$ %# or%l $+eci%l +o(er of %ttor#e'- te# l%c:i#&te (ritte# e!i"e#ce of (%t +%rticl%r +o(er of o(#er$i+ %$

)ee# &r%#te" to te %&e#t- te tir" +%rt' ,%' o#l' re%$o#%)l'+re$,e t%t te %&e#t i$ &r%#te" o#l' +o(er$ of %",i#i$tr%tio#.

Terefore- ot$i"e of Article 183 (ic re#"er$ te $%le of %+iece of l%#" !oi" if te +o(er of %ttor#e' i$ #ot i# (riti#&-

e!er' co#tr%ct e#tere" i#to )' te %&e#t o# )e%lf of te+ri#ci+%l co!eri#& %ct$ of o(#er$i+ ,%"e +r$%#t to % !er)%l$+eci%l +o(er of %ttor#e' (ol" #ot )e !oi"- )t r%ter#e#force%)le- for te +ri#ci+%l %$ e!er' %torit' to +r$e tere$lti#& co#tr%ct- %#" te tir"+%rt' (ol" )e e$to++e" fro,ref$i#& to co,+l' (it % co#tr%ct e (illi#&l' e#tere" i#to%)$e#t te (ritte# %torit' of te %&e#t.

b. Cases 7&ere *pecia$ Po/ers of Attorney Are Necessary

Article 188 e#,er%te$ fortee# i#$t%#ce$ (ic %re "e$cri)e"%$ %ct$ of $trict "o,i#io#-H %#" (ic c%##ot )e "ee,e" to )e(iti# te +o(er of te %&e#t #le$$ e;+re$$l' &r%#te" 4 i.e.-e;ce+t #"er % $+eci%l +o(er of %ttor#e'7- %#" te fiftee#t c%$ee#,er%te" %ct%ll' co!er$ te &e#er%l rleA dul* appointedagent has no po4er to e)ercise on 1ehalf of the principal an* actof strict do$inion unless it is under a special po4er of attorne*.

;hat $a-es an agenc* a special po4er of attorne*


19/42

+o(er to (%i!e o)ectio#$ to te !e#e of %# %ctio#- or to (%i!e% +re$cri+tio# %lre%"' %cire"- !i$ !i$ te $+eci%l +o(er toco,+ro,i$e.

@e# te %ttor#e'i#f%ct %$ )ee# %tori>e" i# (riti#& toi#$titte %#' %ctio# i# cort to eect %ll +er$o# fo#" i# %$+ecifie" +%rcel of l%#" %#" for ti$ +r+o$e- to %++e%r %t te

+retri%l %#" e#ter i#to %#' $ti+l%tio# of f%ct$ %#"orco,+ro,i$e %&ree,e#t )t o#l' i#$of%r %$ ti$ (%$ +rotecti!e ofte ri&t$ %#" i#tere$t$ of te +ri#ci+%l i# te +ro+ert'-H te $%,e

"oe$ #ot co#$titte %torit' to e#ter i#to % co,+ro,i$e%&ree,e#t t%t +ro!i"e$ for te $%le of te +ro+ert' to te"efe#"%#t i# te c%$e t$ file". Te "&,e#t )%$e" o#co,+ro,i$e e#tere" i#to )' te %ttor#e' (o %$ #ot $o(#$+ecific %torit' to "o $o (%$ "ecl%re" !oi". Cos$ic u$1er v.Court of Appeals- 26 SCRA 168 41


20/42

(riti#&- i$ #ot re%ll' !oi"- )t ,erel' !oi"%)le $i#ce te $%lec%# )e r%tifie" )' te +ri#ci+%l 4$ee Art$. 1e" % +er$o# to $ell i$ +%rcel of l%#"- )t (e# $c

+er$o# $)$ee#tl' %++ro!e" te %ctio# of te +r+orte" %&e#t-ti$ +ro"ce" te effect of r%tific%tio# co#!erti#& te rel%tio#$i+

i#to %# e;+re$$ %&e#c'. o(e!erte rli#& i# (uitierrezHer$anos c%##ot )e relie" +o# to $++ort te co#cl$io# t%t %$%le of % +iece of l%#" tro& %# %&e#t (itot % (ritte#%torit' (ol" ,erel' )e #e#force%)le i# $+ite of te cle%rl%#&%&e of Article 183 $i#ce te "eci$io# (%$ re#"ere" #"erte ter,$ of te ol" Ci!il Co"e- %#" Article 183 i$ %# e#tirel'#e( +ro!i$io# i# te Ne( Ci!il Co"e. Li:e(i$e- %+%rt fro, te"ee" of $%le effecte" )' te %&e#t i# (utierrez Her$anos- tere&i$tere" o(#er $)$ee#tl' tereto %ffir,e" te $%le #"er

+)lic "oc,e#t%tio#. Te +roce"re i$ %l$o +o$$i)le #"erArticle 183- (ic ,e%#$ t%t if te %&e#t e#ter$ i#to % $%le of %

+iece of l%#" (itot (ritte# %torit'- i#"ee" te $%le (ol" )e!oi"= )t t%t if te +ri#ci+%l $)$ee#tl'- e#ter$ "irectl' %&%i#

(it te $%,e )'er i#to % for,%l "ee" of $%le- te# te $eco#"tr%#$%ctio#$ (ol" )e !%li" for it i$ #o lo#&er co!ere" #"erArticle 183.

Te rle terefore i$ )e$t e;+re$$e" i#Raet v. Court of Appeals-2


21/42

5uenzle and Streiff v. Collector of Custo$s- ?1 il 636 41e"t%t te +roi)itio# %&%i#$t %&e#t$ +rc%$i#& +ro+ert' i# teir%#"$ for $%le or ,%#%&e,e#t i$ cle%rl'- #ot %)$olte= (e# $o%tori>e" )' te +ri#ci+%l- te %&e#t i$ #ot "i$%lifie" fro,

+rc%$i#& te +ro+ert' e ol"$ #"er % co#tr%ct of %&e#c' to$ell.

6" To 0ae Gifts

A &ift or % "o#%tio# i$ "efi#e" #"er Article 2 of te Ci!ilCo"e %$ %# %ct of li)er%lit' (ere)' % +er$o# "i$+o$e$&r%tito$l' of % ti#& or ri&t i# f%!or of %#oter +er$o# (o%cce+t$ it.

U#"er +%r%&r%+ 6 of Article 188- for %# %&e#t to %!e te+o(er to ,%:e &ift$ or "o#%tio#$ o# )e%lf of te +ri#ci+%l(ol" reire te $%,e to )e i# te for, of % $+eci%l +o(er of%ttor#e'- e;ce+t

4%7 C$to,%r' o#e$ for c%rit'

4)7 To$e ,%"e to e,+lo'ee$ i# te )$i#e$$ ,%#%&e" )' te%&e#t

@e# % &ift or "o#%tio# i$ ,%"e )' %# %&e#t o# )e%lf of te+ri#ci+%l (ic i$ #ot co!ere" )' % $+eci%l +o(er of %ttor#e'- it"oe$ #ot )eco,e !oi" for f%ilre to co,+l' (it te$ereire,e#t i# A&e#c' L%( 4)ec%$e $c "eficie#c' ,erel're#"er$ te co#tr%ct #e#force%)le7- )t r%ter it i$ !oi" or #ot"e+e#"i#& o# (eter it co,+lie$ (it te for,%litie$ reire"#"er te L%( o# Do#%tio#- for e!er' %ct of "o#%tio# co#$titte"% $ole,# co#tr%ct. Te #et effect of co,+li%#ce (it tefor,%litie$ reire" )' te L%( o# Do#%tio# (ol" )e to ,%:ete re$lti#& &ift or "o#%tio# #e#force%)le- (e# it "oe$ #otco,+l' (it te $+eci%l +o(er of %ttor#e' reire,e#t.

8" To Loan or 1orro/ 0oney

U#"er +%r%&r%+ of Article 188- te +o(er of %# %&e#t toeiter lo%# or )orro( ,o#e'- i$ %# %ct of $trict o(#er$i+- %#"reire$ te $%,e to )e i# te for, of % $+eci%l +o(er of%ttor#e'. Te e;ce+tio# (ol" )e (e# te %ct )e r&e#t %#"i#"i$+e#$%)le for te +re$er!%tio# of te ti#&$ (ic %re #"er%",i#i$tr%tio#.H/?0 Te +%r%&r%+ %$ )ee# co#$tre" to co!ero#l' te )orro(i#& of ,o#e' #"er $utuu$- %#" "oe$ #oti#cl"e +rc%$i#& of &oo"$ o# cre"it o# )e%lf of te +ri#ci+%l.

+e illa v. #a1ricante- 15 il. 62 41


22/42

co#$titte ,erel' % &e#er%l +o(er of %ttor#e'= %#" ,%' )ei,+lie" fro, te e;+re$$ +o(er$ &i!e#.

I# ti$ co##ectio#- it $ol" )e #ote" t%t #"er Article 135?427of te Ci!il Co"e- %# %&ree,e#t for te le%$i#& of re%l +ro+ert'for % +erio" lo#&er t%# o#e 'e%r i$ #e#force%)le #le$$ ,%"ei# (riti#&. Terefore- e!e# (e# te %&e#c' +o$$e$$ % $+eci%l

+o(er of %ttor#e' to le%$e re%l +ro+ert'- (e# te le%$e it$elf for,ore t%# % 'e%r i$ #ot i# (riti#&- te re$lti#& co#tr%ct (ol"$till )e #e#force%)le.

I# % co#tr%ct of %&e#c'- te %&e#t %ct$ i# re+re$e#t%tio# or i#)e%lf of %#oter (it te co#$e#t of te l%tter. Article 188 ofte Ci!il Co"e e;+re$$e$ t%t % $+eci%l +o(er of %ttor#e' i$#ece$$%r' to le%$e %#' re%l +ro+ert' to %#oter +er$o# for ,oret%# o#e 'e%r. Te le%$e of re%l +ro+ert' for ,ore t%# o#e 'e%ri$ co#$i"ere" #ot ,erel' %# %ct of %",i#i$tr%tio# )t %# %ct of$trict "o,i#io# or of o(#er$i+. A $+eci%l +o(er of %ttor#e' i$t$ #ece$$%r' for it$ e;ectio# tro& %# %&e#t. Shopper3s

%aradise Realt* v. Ro/ue- 31< SCRA


23/42

U#"er +%r%&r%+ #,)ere" 12 of Article 188- %# %&e#t c%##ot-i# te #%,e of te +ri#ci+%l- cre%te or co#!e' re%l ri&t$ o!eri,,o!%)le +ro+ert' (itot )ei#& +o$$e$$e" of % $+eci%l +o(erof %ttor#e'= oter(i$e- te re$lti#& co#tr%ct (ol" )e#force%)le %&%i#$t te +ri#ci+%l.

Te +%r%&r%+ i#te#"$ to co!er "e%li#&$ o# i,,o!%)le +ro+ert'ot$i"e of te $%le of % +iece of l%#" or %#' i#tere$t terei#co!ere" $+ecific%ll' #"er Article 183- %#" co#tr%ct$ of

+rc%$e of % +iece of l%#"- %#" co#tr%ct$ of "o#%tio#$ of e!er'

t'+e of i,,o!%)le +ro+ert'.Re%l ri&t$H o!er i,,o!%)le +ro+ert' (ol" co!er $cco#tr%ct$ %$ ,ort&%&e$- $frct- e%$e,e#t- etc. It o)!io$l'co!er$ te e#teri#& i#to % le%$e co#tr%ct o!er %# i,,o!%)le (it% +erio" e;cee"i#& o#e 'e%r 4$e+%r%tel' co!ere" #"er +%r%&r%+#,)ere" 8 of Article 1887.

@e# it co,e$ to % ,ort&%&e- te Cort %$ e;+re$$e" te"octri#e t%t % +er$o# c%# )eco,e li%)le o# % re%l e$t%te,ort&%&e (ic e #e!er e;ecte" eiter i# +er$o# or )'%ttor#e'i#f%ct.%hilippine sugar Estates +ev. Co. v. %oizat, 38il. ?6 41e" to ,%:e te ,ort&%&e- if e%$ #ot %cte" i# te #%,e of te +ri#ci+%l. Neiter i$ it or"i#%ril'$fficie#t t%t i# te ,ort&%&e te %&e#t "e$cri)e" i,$elf %$%cti#& )' !irte of te +o(er of %ttor#e'- if i# f%ct te %&e#t %$%cte" i# i$ o(# #%,e %#" %$ $et i$ o(# %#" %#" $e%l to te,ort&%&e. Ti$ i$ e$+eci%ll' tre (ere te %&e#t i,$elf i$ %

+%rt' to te i#$tr,e#t. o(e!er cle%rl' te )o"' of te,ort&%&e ,%' $o( %#" i#te#" t%t it $%ll )e te %ct of te

+ri#ci+%l- 'et- #le$$ i# f%ct it i$ e;ecte" )' te %&e#t for %#" o#)e%lf of i$ +ri#ci+%l- it i$ #ot !%li" %$ to te +ri#ci+%l.

!(" )o !ccept or Repudiate an +nheritance

U#"er Article 1533 of te Ci!il Co"e- %#' +er$o# %!i#& tefree "i$+o$%l of i$ +ro+ert' ,%' %cce+t or re+"i%te %#i#erit%#ce-H (ic o)!io$l' #"er +%r%&r%+ 1? of Article188 co#$titte %ct$ of $trict "o,i#io#. @ile tere i$ #o "o)tt%t re+"i%tio# of %# i#erit%#ce i$ %# %ct t%t &oe$ %&%i#$t tei#tere$t of te +ri#ci+%l %#" (ol" reire te &r%#t of % $+eci%

+o(er of %ttor#e' if it i$ to )e "o#e tro& %# %&e#t- te%cce+t%#ce of i#erit%#ce %$ %#oter )%$i$ +o# (ic it c%##o

)e %# i,+lie" +o(er of i$ %&e#t te %cce+t%#ce of %#i#erit%#ce i#!ol!e$ %# %ct of &r%tit"e o# te +%rt of te eir%#" terefore c%##ot )e +re$,e" to )e % )r"e#H t%t te

+ri#ci+%l i$ +re$,e to %cce+t %$ % ,%tter of cor$e..

!)" )o Ratify or Recogni7e Obligations Contracted 'efore the!gency

R%tif'H i$ % le&%l ter, t%t i#!ol!e$ te %cce+t%#ce of %co#tr%ct- (ic i$ eiter !oi"%)le or #e#force%)le- %#" %$ teeffect cle%#$i#& $c co#tr%ct of it$ le&%l "efect$ t%t retro%ct$ tote "%te of it$ +erfectio#. U#"er Article$ 1?e$ t%tte %ct of r%tif'i#& or cle%#$i#& % "efect co#tr%ct t%t tereforecol" !%li"l' )e e#force" %&%i#$t te +ri#ci+%l i$ %# %ct of $tricto(#er$i+- %#" c%##ot )e effecte" )' te %&e#t (itot $+eci%l

+o(er of %ttor#e'.

Recoitio#H of %# o)li&%tio# refer$ to %c:#o(le"&i#& (%t(%$ % #%tr%l o)li&%tio# (ic (%$ #ot terefore te $)ect ofci!il e#force,e#t= it %$ te effect of ,%:i#& % for,er #%tr%o)li&%tio# )e tr%#$for,e" i#to % ci!il o)li&%tio# t%t c%# )e

e#force" %&%i#$t te e$t%te of te +ri#ci+%l. Recoitio# i$ %# %ctof $trict o(#er$i+ (ic c%# )e +erfor,e" )' %# %&e#t o#)e%lf of te +ri#ci+%l (o +o$$e$$e$ % $+eci%l +o(er of%ttor#e'.

+irector v. Sing "uco- ? il 25 41


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"e+e#"i#& o# circ,$t%#ce$ +re!%ili#& i# e%c c%$e- (ol" )e%ct$ of %",i#i$tr%tio#- %#" ,%' )e &o!er#e" )' % &e#er%l +o(erof %ttor#e'- or ,%' )e i,+lie" or i#ci"e#t%l fro, e;+re$$ +o(er$or fro, te #%tre of te )$i#e$$ co!ere" )' te %&e#c'%rr%#&e,e#t.

I# (arcia v. +e anzano- ?< il 41i#& te $%leof re%l +ro+ert'- ,$t #ece$$%ril' c%rr' (it it te ri&t to $ell %%lf i#tere$t i# % $,%ll )o%t. Te recor" frter $o($ te $%le(%$ #ece$$%r' i# or"er to &et ,o#e' or % cre"it (itot (ic it(ol" )e i,+o$$i)le to co#ti#e te )$i#e$$ (ic (%$ )ei#&co#"cte" i# te #%,e of N%rci$o L. %#>%#o %#" for i$

)e#efit. 4%t +. 87

+e anzano i$ %torit' to $o( t%t %lto& te +o(er to $elli,,o!%)le$ ,$t )e co#t%i#e" i# % $+eci%l +o(er of %ttor#e'-

%#" terefore %l(%'$ co#$titte$ %# %ct of $trict o(#er$i+- te$%le or e#c,)r%#ce of ,o!%)le$ ,%' co#$titte eiter %ct$ of%",i#i$tr%tio# or %ct$ of $trict o(#er$i+- "e+e#"i#& o# te

+re!%ili#& circ,$t%#ce$. T$- i#+e anzano- te &r%#t of tee;+re$$ +o(er to ,%#%&e te e#tire )$i#e$$ %ff%ir$ of te

+ri#ci+%l- (%$ "ee,e" to i#cl"e te +o(er to $ell coo(#er$i+i#tere$t i# ,o!%)le +ro+ert'- e$+eci%ll' (e# te $%le (%$#ece$$%r' to co#"ct te )$i#e$$ of te +ri#ci+%l.

/10Citing Cit*7ite Realt* Corp. v. Court of Appeals- ?2 SCRA

?8 425557=Raet v. Court of Appeals- 2


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VI. SECIFIC OBLIGATION RULES FOR AGENTS

a. Ob$igation of Agent to A#vance :un#s

Tere i$ #o co,,o#l%( "t' or o)li&%tio# o# te +%rtof te %&e#t to %"!%#ce i$ o(# f#"$ i# )e%lf of te +ri#ci+%l=for i#"ee"- o#e of te "i$ti#&i$i#& c%r%cteri$tic of e!er'%&e#c' i$ t%t te %&e#t "oe$ #ot +er$o#%ll' )eco,e li%)le forte co#tr%ct$ %#" tr%#$%ctio#$ +r$e" i# )e%lf of te +ri#ci+%l.

U#"er Article 1886 of te Ci!il Co"e- te o#l' ti,e t%t%# %&e#t i$ le&%ll' )o#" to %"!%#ce +er$o#%l f#"$ i# te

+r$it of te %&e#c' i$ (e# $c o)li&%tio# %$ )ee# e;+re$$l'%&ree" +o# i# te cre%tio# of te co#tr%ct of %&e#c'. Bt e!e#i# $c % c%$e- te %&e#t ,%' ref$e to %"!%#ce %#' +er$o#%lf#"$ (e# te +ri#ci+%l i$ i#$ol!e#t. I#"ee"- #"er Article1


26/42

4)7 ;hen Agent E$po4ered to 'orro4 orend one* P Article 18


27/42


28/42

g. Liabi$ity of Agent for Interest

U#"er Article 18


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VII. O@ER OF AGENT TO AOINT A SUBSTITUTE

Article 18


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i#i#tere$t- eiter %$ +l%i#tiff or "efe#"%#t- i# %# %ctio# +o# t%tco#tr%ct ,$t- &e#er%ll'- eiter )e +%rtie$ to $%i" co#tr%ct. /10

'"#8ceptions9

I# te follo(i#& c%$e$- %# %&e#t- e!e# (e# %cti#& %$ $c(iti# te $co+e of i$ %torit'- ,%' )eco,e +er$o#%ll' li%)leo# te co#tr%ct$ or tr%#$%ctio#$ e#tere" i#to- (e#

4%7 Te %&e#t e;+re$$l' ,%:e$ i,$elf +er$o#%ll' li%)le for teco#tr%ct$ of i$ +ri#ci+%l. 4Art. 18e"- #"er%#' circ,$t%#ce$- )li#"l' to tr$t te %&e#t$= $t%te,e#t$ %$ tote e;te#t of i$ +o(er$= $c +er$o# ,$t #ot %ct #e&li&e#tl'

)t ,$t $e re%$o#%)le "ili&e#ce %#" +r"e#ce to %$cert%i#(eter te %&e#t %ct$ (iti# te $co+e of i$ %torit'. Te$ettle" rle i$ t%t- +er$o#$ "e%li#& (it %# %$$,e" %&e#t %re

)o#" %t teir +eril- %#" if te' (ol" ol" te +ri#ci+%l li%)le-to %$cert%i# #ot o#l' te f%ct of %&e#c' )t %l$o te #%tre %#"e;te#t of %torit'- %#" i# c%$e eiter i$ co#tro!erte"- te )r"e#of +roof i$ +o# te, to +ro!e it. iton!ua v. #ernandez- 32SCRA 38 425537.Reiterated initon!ua, "r. v. Eternit Corp.,

3


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@e# %&e#t e;cee"$ i$ %torit'- te ,%tter c%# )e r%i$e" o#l')' te +ri#ci+%l- %#" (e# #ot $o r%i$e"- reco!er' c%# )e ,%"e)' te tir" +%rt' o#l' %&%i#$t te +ri#ci+%l. Article 18


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"iffere#t o(#er$- $%ll "i$ti#&i$ te, )' co#ter,%r:$- %#""e$i%te te ,erc%#"i$e re$+ecti!el' )elo#& to e%c +ri#ci+%l.I# oter (or"$- te "ef%lt rle i$ t%t co,,i$$io# %&e#t c%##otco,,i#&le &oo"$ of te $%,e :i#" )elo#&i#& to "iffere#t

+ri#ci+%l$.

Di$ti#&i$ ti$ "ef%lt rle i# te c%$e of % co#tr%ct of "e+o$it-(ic #"er Article 1


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VIII. OBLIGATIONS OF TE RINCIAL

!. 1INDING E::ECT O: TE TER0* O: TE CONTRACT O:

AGENC;

I#"ee"- $i#ce % co#tr%ct of %&e#c' i$ ,erel' % +re+%r%tor'co#tr%ct- it i$ (ell (iti# te le&%l c%+%cit' of )ot +%rtie$ toe#ter i#to %#' $ti+l%tio#- o)li&%tio# %#" #"ert%:i#& )' (icte' c%# t%ilorfit te rel%tio#$i+ to )e$t %cie!e te +r+o$e of

te %&e#c'. Li:e %#' oter co#tr%ct &o!er#e" )' te +ri#ci+le$ of,t%lit' %#" o)li&%tor' force- te +ri#ci+%l i$ )o#" )' teter,$ %&ree" +o# #"er te co#tr%ct of %&e#c'.

A+%rt fro, te co#tr%ct%l o)li&%tio#$ !ol#t%ril' %$$,e")' te +ri#ci+%l #"er te ter,$ of te +%rticl%r co#tr%ct of%&e#c' e#tere" i#tote follo(i#& %re te co,,o#l%( "tie$%#" o)li&%tio#$ of te +ri#ci+%l )' te !er' f%ct t%t e %$co#$titte" %#oter +er$o#- te %&e#t- to re+re$e#t i, i#

+r$i#& ri"ic%l %ct$ %#" co#tr%ct$- i# i$ #%,e.

'. PRINCIPAL I* 1Oe" to tr%#$%ct )$i#e$$ for %#"
http://deanclvonagency.weblog.com/2008/8/VIII-OBLIGATIONS-OF-THE-PRINCIPAL.htmlhttp://deanclvonagency.weblog.com/2008/8/VIII-OBLIGATIONS-OF-THE-PRINCIPAL.html


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o# )e%lf of te )%#:. T$- ti$ Cort %$ rle" i# Bo%r" ofLii"%tor$ !. %l%(1 /25 SCRA


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a. Ob$igation to A#vance *u%s Re>ueste# for E2ecution of

Agency

U#"er Article 1


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$oli"%ril' li%)le to te %&e#t for %ll te co#$ee#ce$ of te%&e#c'.

E!e# if te +ri#ci+%l$ "o #ot %ct%ll' %#" +er$o#%ll' :#o(e%c oter- $c ior%#ce "oe$ #ot %ffect teir ri"ic%l $t%#"i#&of te %&e#t.+oles v. Angeles, 3


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IQ. EQTINGUISENT OF AGENCY

!. O7 AND 7EN AGENC; E+TING


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(ic i$ te o)ect of % +o(er of %ttor#e' &i!e# to %# %&e#t "oe$#ot #ece$$%ril' ,e%# tere i$ i#te#t to re!o:e. For i#"ee"-%&e#c' %rr%#&e,e#t$ %re #ot ,e%#t to crt%il te +o(er of te

+ri#ci+%l to e;ecte %ct$ of o(#er$i+ %#" %",i#i$tr%tio#- )t %$% ,%tter of )$i#e$$ $e#$e- to %llo( te +ri#ci+%l- )' le&%lfictio#- to e;te#" i$ +er$o#%lit' tro& te f%cilit' of te %&e#t4Orient Air Service & Hotel Representatives v. Court of Appeals-1


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to $++l%#t %#" re!o:e te l%tter (e# te t(o %re i#co#$i$te#t.If te #e( %++oi#t,e#t (it li,ite" +o(er$ "oe$ #ot re!o:e te&e#er%l +o(er of %ttor#e'- te e;ectio# of te $eco#" +o(er of%ttor#e' (ol" )e % ,ere ftile &e$tre.*

If te +r+o$e of te +ri#ci+%l i# "e%li#& "irectl' (it te+rc%$er %#" i,$elf effecti#& te $%le of te +ri#ci+%l$+ro+ert' i$ to %!oi" +%',e#t of i$ %&e#t$ co,,i$$io#- tei,+lie" re!oc%tio# i$ "ee,e" ,%"e i# )%" f%it %#" c%##ot )e$%#ctio#e" (itot %ccor"i#& to te %&e#t te co,,i$$io# (ic

i$ "e i,.+nfante v* Cunanan3 4( P&i$ 64( !4-(". @ere #o ti,e for te co#ti#%#ce of te %&e#c' i$ fi;e"

)' te ter,$- te +ri#ci+%l i$ %t li)ert' to ter,i#%te it %t (ill$)ect o#l' to te reire,e#t$ of &oo" f%it. -a


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B' te o+e#i#& of )r%#c office (it te %++oi#t,e#t of it$)r%#c ,%#%&er %#" o#ori#& $e!er%l $ret' )o#"$ i$$e" i# it$)e%lf- te i#$r%#ce co,+%#' i#"ce" te +)lic to )elie!e t%tit$ )r%#c ,%#%&er %" %torit' to i$$e $c )o#"$. A$ %co#$ee#ce- te i#$r%#ce co,+%#' (%$ e$to++e" fro,

+le%"i#&- +%rticl%rl' %&%i#$t % re&l%r c$to,er tereof- t%t te)r%#c ,%#%&er %" #o %torit'. Central Surety 5 +nsuranceCo* v* C*N* (odges3 (5 *CRA !-4 !48!".

@ile Article 1?8 of te Ci!il Co"e reire$ t%t te

co#tr%ct$ i#!ol!i#& re%l +ro+ert' ,$t %++e%r i# % +ro+er"oc,e#t- % re!oc%tio# of % $+eci%l +o(er of %ttor#e' to,ort&%&e % +%rcel of l%#"- e,)o"ie" i# % +ri!%te (riti#&- i$ !%li"%#" )i#"i#& )et(ee# te +%rtie$- $c reire,e#t of Article1?8 )ei#& o#l' for te co#!e#ie#ce of te +%rtie$ %#" to ,%:ete co#tr%ct effecti!e %$ %&%i#$t tir" +er$o#$. PN' v*

+ntermediate !ppellate Court3 !54 *CRA 659 !449".

Cia. (en. +e To1acos v. +ia1a- 25 il ?21 41


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%#re$% co,,e#ti#& o# Art. 15< of te S+%#i$ Ci!ilCo"e e;+l%i#$ t%t te r%tio#%le for te l%( i$ fo#" i# te

ri"ic%l )%$i$ of %&e#c' (ic i$ re+re$e#t%tio#. Tere )ei#& %#i#te&r%tio# of te +er$o#%lit' of te +ri#ci+%l i#to t%t of te%&e#t it i$ #ot +o$$i)le for te re+re$e#t%tio# to co#ti#e to e;i$to#ce te "e%t of eiter i$ e$t%)li$. otier %&ree$ (it %#re$%t%t )' re%$o# of te #%tre of %&e#c'- "e%t i$ % #ece$$%r' c%$efor it$ e;ti#ctio#. L%re#t $%'$ t%t te ri"ic%l tie )et(ee# te

+ri#ci+%l %#" te %&e#t i$ $e!ere" i+$o re +o# te "e%t ofeiter (itot #ece$$it' for te eir$ of te +ri#ci+%l to #otif' te%&e#t of te f%ct of "e%t of te for,er.

Te $%,e rle +re!%il$ %t co,,o# l%( te "e%t of te+ri#ci+%l effect$ i#$t%#t%#eo$ %#" %)$olte re!oc%tio# of te%torit' of te %&e#t #le$$ te +o(er )e co+le" (it %#i#tere$t. 15 Ti$ i$ te +re!%le#t rle i# A,eric%# Jri$+r"e#ce(ere it i$ (ell$ettle" t%t % +o(er (itot %# i#tere$t co#ferre"+o# %# %&e#t i$ "i$$ol!e" )' te +ri#ci+%l9$ "e%t- %#" %#'%tte,+te" e;ectio# of te +o(er %fter(%r"$ i$ #ot )i#"i#& o#te eir$ or re+re$e#t%ti!e$ of te "ece%$e". 4%t +. 2657

Te "e%t of % clie#t "i!e$t$ i$ l%('er of %torit' tore+re$e#t i, %$ co#$el. A "e%" clie#t %$ #o +er$o#%lit' %#"c%##ot )e re+re$e#te" )' %# %ttor#e'. 2avina v* Court of

!ppeals3 !8! *CRA 64! !455".

Re$ate# Cases,

)errado v* Court of !ppeals3 !(! *CRA (8( !45)"

Her$osa v. ongara-


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To $++ort $c %r&,e#t refere#ce i$ ,%"e to % +ortio# i#%#re$%9$ Co,,e#t%rie$ (ic @e ote

*If te %&e#c' %$ )ee# &r%#te" for te +r+o$e ofco#tr%cti#& (it cert%i# +er$o#$- te re!oc%tio# ,$t )e ,%"e:#o(# to te,. Bt if te %&e#c' i$ &e#er%l i# #%tre- (itotrefere#ce to +%rticl%r +er$o# (it (o, te %&e#t i$ to co#tr%ct-it i$ $fficie#t t%t te +ri#ci+%l e;erci$e "e "ili&e#ce to ,%:ete re!oc%tio# of te %&e#c' +)licl' :#o(#.

*I# c%$e of % &e#er%l +o(er (ic "oe$ #ot $+ecif' te+er$o#$ to (o, re+re$e#t%tio# $ol" )e ,%"e- it i$ te &e#er%lo+i#io# t%t %ll %ct$ e;ecte" (it tir" +er$o#$ (o co#tr%cte"i# &oo" f%it- (itot :#o(le"&e of te re!oc%tio#- %re !%li". I#$c c%$e- te +ri#ci+%l ,%' e;erci$e i$ ri&t %&%i#$t te %&e#t-(o- :#o(i#& of te re!oc%tio#- co#ti#e" to %$$,e %

+er$o#%lit' (ic e #o lo#&er %".* 4%#re$%- Vol. 11- ++. 61%#" = ++. 116- rollo7

Te %)o!e "i$cor$e- o(e!er- tre%t$ of re!oc%tio# )' %#%ct of te +ri#ci+%l %$ % ,o"e of ter,i#%ti#& %# %&e#c' (ic i$to )e "i$ti#&i$e" fro, re!oc%tio# )' o+er%tio# of l%( $c %$"e%t of te +ri#ci+%l (ic o)t%i#$ i# ti$ c%$e. O# +%&e $i; ofti$ O+i#io# @e $tre$$e" t%t )' re%$o# of te !er' #%tre of te

rel%tio#$i+ )et(ee# +ri#ci+%l %#" %&e#t- %&e#c' i$ e;ti#&i$e"ipso !ure+o# te "e%t of eiter +ri#ci+%l or %&e#t. Alto& %re!oc%tio# of % +o(er of %ttor#e' to )e effecti!e ,$t )eco,,#ic%te" to te +%rtie$ co#cer#e"- 'et % re!oc%tio# )'o+er%tio# of l%(- $c %$ )' "e%t of te +ri#ci+%l i$- %$ % rle-i#$t%#t%#eo$l' effecti!e i#%$,c %$ *)' le&%l fictio# te%&e#t9$ e;erci$e of %torit' i$ re&%r"e" %$ %# e;ectio# of te

+ri#ci+%l9$ co#ti#i#& (ill.* @it "e%t- te +ri#ci+%l9$ (illce%$e$ or i$ ter,i#%te"= te $orce of %torit' i$ e;ti#&i$e".

Te Ci!il Co"e "oe$ #ot i,+o$e % "t' o# te eir$ to#otif' te %&e#t of te "e%t of te +ri#ci+%l. @%t te Co"e

+ro!i"e$ i# Article 1

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