ASSIGNMENT #1 [LAW ON BUSINESS ORGANIZATION]

Distinguish Agency to Sell vs. Sale

Agency to Sell

Agent makes no warranty for which he assumes personal liability as

long as he acts his authority and in the name of the seller.
Agent in dealing with the thing received must act according to the
instruction of the principal.

Agency to Sell Sale

1. Agent does not pay. 1) Buyer pays the price.

2. Agent does not acquire ownership. 2) Buyer acquires ownership over the
object of the contract.

3. Agent does not warrant. Unless he 3) Seller warrants.

agrees.

4. Essence of agency: delivery to the 4) Essence of sale: transfer of title or

agent of the goods as the agent’s agreement to transfer it for the price
property but of the principal who paid or promised.
remains the owner and has the right
to control the sales by the agent, fix
the price and terms, demand and
receive the proceeds of the sales less
the agents commission.
 ASSIGNMENT #1 [LAW ON BUSINESS ORGANIZATION]

Agency vs. Lease of Services

Agency

Agency is a fiduciary relationship between two parties in which one is under the
control of the other. The agent is authorized by the principal to perform certain acts,
for and on behalf of the principal. The principal is bound by the acts of the agent,
performed in carrying out entrusted duties and within the scope of agents authority,
an agency can be created by express agreement, whether oral or written,
implication, based on the custom or practice of the trade or conduct of the principal.
Under the legal doctrine of estoppels, the principal is prohibited from denying the
existence of a properly constituted agency.

Lease of Services

Lease is a consensual, bilateral, onerous and commutative contract by virtue of which one person binds
himself to grant temporarily the use of the thing or to render some service to another who undertakes to
pay some rent.
Art. 1842. The right to an account of his interest shall accrue to any partner, or his legal representative as
against the winding up partners or the surviving partners or the person or partnership continuing the
business, at the date of dissolution, in the absence of any agreement to the contrary. (n)
What are the properties which may be leased?
1. Lease of Public Domain which must be those alienable lands (agricultural lands) of 1,000 hectares
maybe leased by private corporation for 25 years and 12 hectares by Filipino citizens
2. Private Lands and/or improvements thereof.
What is the recording of lease of personal property?
As a general rule, the lease of real property is personal right. However if the lease partakes of the nature
of real right if the lease real property is more than one (1) year or is registered regardless of duration.

Lease of service/s is a leasing agreement in which the owner (lessor) is responsible

for covering the building’s operating expenses in the rent.