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    PAT Lec. No.1

    Uploaded by

    Martin Gacias
    Partnership General Provisions

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    PAT Lec. No.1

    Uploaded by

    Martin Gacias
    7 views3 pages
    Partnership General Provisions

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

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    Partnership General Provisions

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views3 pages

    PAT Lec. No.1

    Uploaded by

    Martin Gacias
    Partnership General Provisions

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    QUIZ No.

    1:

    Nature, Forms and Kinds of Agency (Arts. 1868-1873)

    1. What is a contract of agency?

    A: By the contract of agency, a person binds himself to render some service or to do something in representation or in
    behalf of another, with the consent or authority of the latter.

    2. What are the characteristics of a contract of agency?

    A: a. Consensual: It is created by agreement of the parties. It is perfected by mere consent.


    b. Principal: It can stand on its own without the need of another contract.
    c. Preparatory: It is entered into for the creation of another transaction or contract.
    d. Unilateral or Bilateral: It is unilateral if it is gratuitous because it creates an obligation
    to only one of the contracting parties. It is bilateral if it is for a compensation because it
    creates reciprocal rights and obligations.
    e. Nominal: It has its own name.

    Nature of a contract of agency:

    • Manifestation of Consent: The principal must intend that the agent acts in his behalf and that the agent must
    accept the authority and act on it. The intention of both parties must be expressed either in words or through
    their conduct.

    • The agent, by legal fiction, becomes the principal: In acting for the principal, the agent, by legal fiction,
    becomes the principal, authorized to act which the principal would have him do. To put this into effect, it is
    necessary that the agent must be given consent or authority by the principal.

    Basis of a contract of agency:

    3. What is the basis of a contract of agency?


    A: the basis of a contract of agency is representation.

    • The acts of the agent, by legal fiction, are the acts of the principal:
    The acts of the agent, within the scope of his authority, produce the effect as thought they were done by the
    principal. Thus, by this legal fiction, the actual absence of the principal is converted into his juridical
    presence.

    4. What is the purpose of a contract of agency?


    A: The purpose of a contract of agency is to extend the personality of the principal through the facility of the agent.

    Parties to an Agency:

    5. Who are the parties to a contract of agency?


    A: Agent: The person who acts for or represents the principal.
    Principal: The person represented in a contract of agency.

    6. Is legal capacity of both the principal and agent a condition sine qua non before a contract of agency may arise?

    A: The principal must be capacitated. He must have the legal capacity to enter into contracts. A person who
    cannot legally enter into a contract should not be permitted to enter the same indirectly through another.

    The legal capacity of the agent is immaterial. The legal capacity of the agent is immaterial since he assumes
    no personal liability. An agent is not required to have full legal capacity to act for himself insofar as third
    persons are concerned. An agent derives his authority from the principal and the contract entered into by a
    an agent is viewed as that entered into by the principal.

    7. What are the acts that may not be delegated by the principal to an agent?

    A: Personal acts such as the act of casting of votes or making of a will.


    Acts prohibited by law or criminal acts.
    8. What is the ruling of the SC in the case of Ong vs. CA vis-à-vis on the acts which cannot be delegated to an agent?

    A: The law on agency does not apply to criminal cases. If a person participates in the commission of a crime, he cannot
    escape punishment on the ground that he simply acted as an agent of another party.

    9. What are the essential elements of a contract of agency?

    A: There must be consent of the parties, either express or implied;


    The object, which is the execution of a juridical act in relation to third persons;
    The agent must act as a representative and not for himself;
    The agent must act within the scope of his authority;
    The parties must be competent to act as principal and agent.

    10. Is there any formality required for the creation of an agency relationship?

    A: No. There is no formality required for the creation of an agency relationship. The question as to whether an agency
    relation has been created may be established in the same way as any other fact, either by direct or circumstantial
    evidence. The question is ultimately one of intention.

    Intention to create the relationship: On the part of the principal, there must be an actual intention to appoint
    an agent or that his intention is naturally inferable from his words or actions. On the part of an agent, there
    must be an acceptance of the authority and he must act on it, otherwise, there is generally no agency.

    Agency relation cannot be presumed. It must be established as a fact. For the relation to exist, there must be
    consent of both parties: The principal consents that the agent acts on his behalf and that the agent consents to
    act on behalf of the principal.

    11. What is the nature of the relation between the principal and the agent?

    A: The relation between the principal and the agent is fiduciary in character which is based on trust and confidence.

    12. Distinguish agency from a contract of lease of services.


    As to basis:
    A: Representation.
    CLS: Employment

    As to Exercise of Powers:
    A: The agent exercises discretionary powers.
    CLS: The employee exercises only ministerial powers.

    As to Extinguishment:
    A: Extinguished upon the will of the principal.
    CLS: Extinguished only when there is a concurrence of both the employer and employee.

    13. Distinguish agency from partnership.

    A: An agent acts only on behalf of the P


    P: A partner acts on behalf of the firm, the co-partners and himself

    A: The agent is subject to the control of the P


    P: The partner’s right to bind the co-partners is not subject to the co-partner’s right to control.

    A: An agent has no liability when he acts in behalf of the principal and had acted within the scope of his authority.
    P: A partner who enters into a contract within the scope of his authority binds himself, his co-partners and the firm.

    14. Distinguish agency from an independent contract.

    A: The agent is subject to the control of the principal.


    IC: The independent contractor is not subject to the control of the employer except only as to the result of the work.
    The independent contractor exercises his employment independently and not in representation of the employer.
    15. Distinguish agency from negotiorum gestio.
    In both agency and negotiorum gestio, representation is present.
    A: Representation by the agent is expressly conferred by the principal.
    NG: The representation made is without the knowledge and authority of the owner of the business.

    A: The agent acts according to the will of the principal.


    NG: The gestor acts according to the presumed will of the owner by exercising the due diligence of a good father of a
    family.

    A: Contract
    NG: Quasi-contract.

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