IN THE NAME W/IN THE SCOPE OF OUTSIDE SCOPE OF IN VIOLATION OF ACTS WITHOUT

OF AUTHORITY AUTHORITY INSTRUCTIONS AUTHORITY

Arts. 1898,1899,1900 Arts. 1892, 1893, 1898,
Contract: Valid 1897
Contract:
Void/Unenforceable to P
Liabilities/duties: Liabilities/duties:
Agent: Agent:
- No liab - Liable to 3rd Person and
to Principal
Except: if he gave notice
of his powers to 3rd
person, then he is NOT
bound
PRINCIP
AL
Arts. 1887 Arts. 1897
Contract: Valid; Contract: Unauthorized
binding
Liabilities/duties: Liabilities/duties:
Agent: Agent:
- Liable to P - Personally liable (in
Except: When A carries case of damages) as the
out instructions & does principal
NOT appear to have
exceeded his
authority/acted in N,D/F
then A is NOT liable
for failure of P to
accomplish the object
of the agency

Principal: Principal: Principal: Principal:

- Responsible for acts - No liability (unless he - Bound by acts of A - contract unenforceable
of the agent ratified As acts) - Liable to 3rd Person to him
- Liable to 3rd person - May proceed to Gen. Rule: it matters
(in case of damages) Agent/SubAgent for not that As act directly
damages contrary to Ps
instructions, P will
nevertheless be
liable.
Exception: 3rd person
with whom A dealt
knew that he was
exceeding his
authority/violating his
instruction

3rd person: 3rd person: 3rd person: 3rd person:

- Proceed to P - Proceed to A (if aware of - bound to inquire to - proceed against Agent
As authority then A is the extent of As
personally liable unless authority (if not
ratified by P written)
Arts. 1883, 1900
Contract: Valid Contract: Voidable; Contract: Contract: Valid (No
Unenforceable to P Unenforeceable contract of agency)
Liabilities/duties: Liabilities/duties: Liabilities/duties: Liabilities/duties:
Agent: Agent: Agent: Agent:
- directly bound to 3rd - Personally liable - Liable to Principal and - He is himself regarded
person - Forfeits his right to 3rd Person as principal
Except: contract collect commission

AGEN involves things

belonging to Principal
- If
converts/misappropriates
he

T for his own use: Liable

for estafa

Principal: Principal: Principal: Principal:

- No right of action - Unenforceable to him - Unenforceable against - Agent is the P
with whom Agent has him
contracted with
neither such person
against P

3rd person: 3rd person: 3rd person: 3rd person:

- Proceed against A - Proceed against A - Proceed against A - Proceed to P^
Except: if contract
involves things
belonging to P
Obligations of Agent
If the agent acts