IF TWO OR MORE PERSONS HAVE

APPOINTED AN AGENT FOR A COMMON

TRANSACTION OR UNDERTAKING, THEY
SHALL BE SOLIDARILY LIABLE TO THE
AGENT FOR ALL THE CONSEQUENCES OF
THE AGENCY. (1731)
Art. 1915
Requisites for solidary liability
There are three requisites for the application of the
above article:

1) There are two or more principals;

2) The principals have all concurred in the
appointment of the same agent; and

3) The agent is appointed for a common transaction or
undertaking.
Where principals are members of a non-
profit association
A distinction has been made in respect of the liability of
the principals of a profit association as compared to that
of a non-profit or voluntary association. While the
principals in the first are personally liable on all business
contracts, the principals or members in the second are
liable personally only under two circumstances:

1) Where the member assented to the particular act or
transaction in respect of which personal liability is
sought to be fastened. Such assent is usually indicated by
an affirmative vote at the meeting where the proposal is
discussed.
2) Where the member assented by his conduct
WHEN TWO PERSONS CONTRACT
WITH REGARD TO THE SAME THING,
ONE OF THEM WITH THE AGENT AND
THE OTHER WITH THE PRINCIPAL,
AND THE TWO CONTRACTS ARE IN-
COMPATIBLE WITH EACH OTHER,
THAT OF PRIOR DATE SHALL BE
PREFERRED, WITHOUT PREJUDICE
TO THE PROVISIONS OF ARTICLE
1544. (N)
Art. 1916
Example
P authorized A to contract for the construction of his
house for a price of not more than P100,000.00.
Without the knowledge of A, P contracted with B for
the construction of the house for P95,000.00. Later,
A entered into a contract with C for the construction
of the same house for P90,000.00.

Under Article 1916, the contract with B shall be
preferred as it is of prior date.

IN THE CASE REFERRED TO IN THE
PRECEDING ARTICLE, IF THE AGENT
HAS ACTED IN GOOD FAITH, THE
PRINCIPAL SHALL BE LIABLE IN
DAMAGES TO THE THIRD PERSON
WHOSE CONTRACT MUST BE
REJECTED. IF THE AGENT ACTED IN
BAD FAITH, HE ALONE SHALL BE
RESPONSIBLE. (N)

Art. 1917
THE PRI NCI PAL I S NOT LI ABLE FOR THE EXPENS-
ES I NCURRED BY THE AGENT I N THE FOLLOWI NG
CASES:

( 1) I F THE AGENT ACTED I N CONTRAVENTI ON OF
THE PRINCI - PAL S I NSTRUCTI ONS, UNLESS THE
LATTER SHOULD WI SH TO AVAI L HIMSELF OF THE
BENEFI TS DERI VED FROM THE CONTRACT;

( 2) WHEN THE EXPENSES WERE DUE TO THE FAULT
OF THE
AGENT;

Art. 1918
( 3) WHEN THE AGENT INCURRED THEM WI TH
KNOWLEDGE THAT AN UNFAVORABLE RESULT
WOULD ENSUE, I F THE PRI NCI PAL WAS NOT AWARE
THEREOF;

( 4) WHEN I T WAS STI PULATED THAT THE EXPENSES
WOULD BE BORNE BY THE AGENT, OR THAT THE
LATTER WOULD BE ALLOWED ONLY A CERTAIN SUM.
( N)