II.

KINDS OF AGENCY

1. As to manner of creation
a. Express (Arts. 1869, 1870)

Article 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)

Article 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)

b. Implied (Arts. 1869 - 1872)

Article 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)

Article 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)

Article 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)

Article 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)

i. Implied agency vs agency by estoppel (Estoppel: Arts. 1873, 1431, 1432)

Article 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The power shall continue to be in full force until the notice is rescinded in the same manner in which it was given.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)

Article 1431. Through estoppel an admission or representation is rendered conclusive upon the person making it, and cannot be denied or disproved as against the
person relying thereon.

Article 1432. The principles of estoppel are hereby adopted insofar as they are not in conflict with the provisions of this Code, the Code of Commerce, the Rules of
Court and special laws.

ii. Doctrine of apparent authority

1
 Cases:
 Yun Kwan Byung v. PAGCOR, G.R. No. 163553, 608 SCRA 107 (2009)
 Salvador v. Rabaja, 749 SCRA 654 (2015)
 Blondeau v. Nano, 61 Phil 625 (1935)
 Equitable PCI Bank v. Ku, 355 SDCRA 309 (2001)
 Country Bankers Insurance v Keppel Cebu Shipyard, 673 SCRA 427 (2012)
 Republic v. Bañez, 772 SCRA 297 (2015)
 Banate v. Philippine Countryside Rural Bank, 625 SCRA 21 (2010)
 Bitte v. Jonas, 777 SCRA 204 (2015)

2. As to character
a. For compensation (Arts. 1875, 1909)

Article 1875. Agency is presumed to be for a compensation, unless there is proof to the contrary. (n)

Article 1909. The agent is responsible not only for fraud, but also for negligence, which shall be judged with more or less rigor by the courts, according to whether
the agency was or was not for a compensation. (1726)

b. Gratuitous

Case:
• Manotoc Brothers v. CA, 221 SCRA 224