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June 9 – Agency Quickies compiled by Marian Not necessarily.

A contract is considered not as the

parties stipulated, but as they performed it.
What is the underlying principle of the contract of
agency? Why is it important that the principal have the
capacity required for the act entrusted to the
To accomplish the results by using the services of agent?
others; to extend the personality of the principal
It is because he is the one who will receive the
As a nominate contract, what are its basic and benefits and incur the obligations or losses arising
peculiar characteristics? from therefrom.
It is personal, representative (no rep in a contract, May agency be both unilateral and bilateral?
he cannot be considered as an agent) and it is
derivative (something obtained/developed from Yes. It may be unilateral if gratuitous because it
something else) creates obligation for one of the parties. It is
bilateral if for compensation, giving rise to reciprocal
May legal possibility without representation be rights and obligations.
In the presence of conflicting interests, may an
Yes. From the provisions of Article 1883, which agent act as one for both parties to the same
provides of the circumstance that the agent acts transaction?
exclusively in his own name.
Yes. 1) when both consent, 2) when he is a
What is the true essence of the distinction between middleman or intermediary, 3) with no independent
lease of service and agency? alternative, 4) when he acts with knowledge and
consent of both
The agent enters or is designed to enter into juridical
relations, with or without representation of the What is the effect of a person undertaking to act as
principal. (JBL Reyes, Lawyer’s Journal) agent for another, who has not given his consent?

May there be agency in impersonation? Reciprocal relations are created by virtue of a quasi-
contract, by which no consent is required and the
No. The element of representation is absent. On the
rd obligation arises from law or natural equity.
part of the 3 person, there is no knowledge that
the contract is on behalf of a person other than the May knowledge of the agent be imputed to the
one before him or with whom he is negotiating. principal?
Can agency be admissible in all contracts or acts? Yes, except when: 1) agent’s interests are adverse to
the principal, 2) agent’s duty is not to disclose the
Not necessarily. There are certain acts which cannot
information as where he is informed by way of
be performed through an agent such as: the entering
confidential information, 3) where the person
into a marriage contract, the making of wills and
claiming the benefit of the rule colludes with the
testaments, the presence of the accused during the
agent to defraud the principal.
trial of a criminal case, the statements required to be
made under oath, the right to vote during an May agency be created by operation of law?
election, and an act appointed to the agent in person
cannot be delegated to a sub-agent. Yes. For example, agency by estoppel, which creates
a conclusive presumption of an appearance of an
Can the mere use of the term “agency” in one agency.
clause dominate the whole contract?
**In Agency by estoppel, it is very hard to prove the If the termination is made by the principal, it is called
existence of the actual agency; An agent by a revocation. If it is made by the agent, it is called
estoppels is no agent at all withdrawal.

This is not, however, true in negotiorum gestio. What are the instances where special power of
attorney is required?
With respect to the effectiveness of the act
executed by the agent on behalf of the principal, is 1) acts of strict dominion, 2) gratuitous contracts, 3)
there a particular capacity required of the agent? contracts where personal trust or confidence is of
the essence of the agreement
No, so long as he has sufficient intelligence and
freedom of will. May authority be inferred from the fact that the
principal has previously ratified an act of the agent
What is an example of a principal that is a juridical a different character, or an act done under
person? substantially different conditions?
A corporation or partnership acting thru their No. The implication of authority rests not so much
officers of such entity as their agent on the number as on the character of the acts
May the principal avoid the contract entered into
by his agent in favor of a third person on the Only when can agency by estoppel be invoked?
ground of his agent’s incapacity?
When the third person knew and relied on the
No. The agent’s personality is only an extension of conduct of the principal
the principal. Thus, what is important is the capacity
of the principal and not the agent.

Is there a concept of transferring in a contract of


Yes. However, it is only possession that is

transferred, but not ownership.

Is the contract of agency the same as sale as to

cause, in that it is also essentially an onerous

No, but it is presumed to be for compensation,

presumed to be onerous, however, it may be
deemed gratuitous.

What is a feature which would make agency similar

to partnership?

The basis on trust and confidence; there are

fiduciary obligations of an agent as much as there
are fiduciary obligations of a partner

What are the manners of termination in agency?