Agency, Trust & Partnership Reviewer - Obligations of the Principal (Cambri Notes)

Obligations of the Principal

1910:Obligations contracted

Bound/Liable Within the scope of authority

Not Bound/Not Liable

G!: "gent e#ceeded his authority 1911

191%: "d&ance'ent of necessary su's plus interest fro' the day the ad&ance (as 'ade

191*: +nde'ni,cation for da'ages the e#ecuti&e of  agency caused the agent 191191: t(o or 'ore persons ha&e appointed an agent for a co''on transaction 191213: +nco'patible contract of agency

1914: $#penses incurred by agent

When he ratifes it I he allowed the agent to act as though he had ull powers (solidarily liable)

$#ceptions

)uty to rei'burse I so requested by agent I there is a stipulation, provided principal is not insolvent (1886) ven i the business underta!ing was not unsuccessul, unsuccessul, provided agent is ree ro" ault Without agent#s ault

I agent is at ault

.he agent 'ay retain in pledge the obects of agency until rei'burse'ent and inde'nity are paid $olidarily liable to the agent or all consequences o agency G!: Prior date shall be preferred "gent in good faith "gent is in bad faith principal is liable or &rincipal &rincipal not liable, agent da"ages to third persons only whose contract "ust be re%ected 1) principal should wish to 1) 'gent acted in avail hi"sel o the benefts contravention with derived ro" the contract principal#s instructions ) penses in the eecution o agency, without ault o agent *) &rincipal was aware o such !nowledge

) penses due to the ault

*) 'gent incurred the" with !nowledge o unavorable result, principal was not aware +) When stipulated, or when

the agent will be allowed a certain su"

B; !$
1-/ 1-*

1-+

1-6. 9eneral power o attorney

5O)$6 O7 $8.+NG+65$N. Without preudice to With preudice persons Without notice With notice

I persons are in good aith and had no !nowledge o the revocation !e&o>ed 0y the principal at will (epress or i"plied) 'ppoint"ent o a new agent or the $' business or transaction I the principal 2I3457 ''9$ the business and 2'$ 2I3457 with third persons 0y special one granted to another agent as regard to special "atter

1-:

B; W+.)!"W"L ;ow. 0y agent giving due notice to the principal

$?ect

B; )$".

=annot be re&o>ed

I a bilateral contract depends upon it I it is the "eans o ulflling an obligation already contracted I a partner is appointed "anager o a partnership and his re"oval is un%ustifable iable or da"ages. i the principal should su
ot iable (eception). i"possibility o continuing the peror"ance without grave detri"ent to hi"sel 

2eath o principal 1-*/. 'gency re"ains in ull orce and e
1-*1. ='I2 and >?7 >>45I= with respect to third persons in good faith 2eath o agent

O.$! ="6$6

1-*. ;is heirs "ust notiy the principal and adopt "easures 4ivil interdiction, insanity, insolvency o principal or agent, dissolution o fr" or corporation which entrusted or accepted the agency

I it has been constituted in the co""on interest o the principal and o the agent In the interest o a third person who has accepted the stipulation in his avor 'cts done by agent without the !nowledge o death or '7 @5;3 4'?$ W;I4; A5I9?I$;$ 5; '947