Sales Agency - Extinguishment
Extinguishment of Agency
Modes of extinguishment of agency
(A) By Revocation of the Principal
1] Revocation - refers to the act of the principal of terminating the agency at will confidence and representation being the foundation of the contract.
The principal may revoke the agency at will, and compel the agent to return the document evidencing the agency. (Art. 1920)
2] Who may revoke agency when there are two or more principals.
When the power of attorney was granted for a common transaction, any one of the principals may revoke the same without the consent of the others. (Art. 1925)
This is consistent with the solidary liability of the principals. (See Art. 1915)
3] Kinds of revocation:
a. Express – when made orally or in writing.
b. Implied – when revocation can be inferred from the act of the principal as in the following:
i. When a new agent is appointed for the same business or transaction, the previous agency is revoked from the day on which notice thereof was given to the former agent. (Art. 1923)
ii. If the principal directly manages the business entrusted to the agent, dealing directly with third persons.
If the purpose of the principal is just to assist the agent, the latter’s authority is not deemed revoked.
iii. A general power of attorney is revoked by a special one granted to another agent, as regards the special matter involved in the latter. (Art. 1926)
4] When agency may not be revoked at will a. If a bilateral contract depends upon the agency.
b. If the agency is a means of fulfilling an obligation already contracted.
c. If a partner is appointed manager of a partnership in the contract of partnership and his removal from the management is unjustifiable. (Art. 1927)
5] Notice of revocation
a. If the agency has been entrusted for the purpose of contracting with specified persons, the principal must give a timely notice of the revocation to such third persons.
Without such notice, said
Modes of extinguishment of agency
(A) By Revocation of the Principal
1] Revocation - refers to the act of the principal of terminating the agency at will confidence and representation being the foundation of the contract.
The principal may revoke the agency at will, and compel the agent to return the document evidencing the agency. (Art. 1920)
2] Who may revoke agency when there are two or more principals.
When the power of attorney was granted for a common transaction, any one of the principals may revoke the same without the consent of the others. (Art. 1925)
This is consistent with the solidary liability of the principals. (See Art. 1915)
3] Kinds of revocation:
a. Express – when made orally or in writing.
b. Implied – when revocation can be inferred from the act of the principal as in the following:
i. When a new agent is appointed for the same business or transaction, the previous agency is revoked from the day on which notice thereof was given to the former agent. (Art. 1923)
ii. If the principal directly manages the business entrusted to the agent, dealing directly with third persons.
If the purpose of the principal is just to assist the agent, the latter’s authority is not deemed revoked.
iii. A general power of attorney is revoked by a special one granted to another agent, as regards the special matter involved in the latter. (Art. 1926)
4] When agency may not be revoked at will a. If a bilateral contract depends upon the agency.
b. If the agency is a means of fulfilling an obligation already contracted.
c. If a partner is appointed manager of a partnership in the contract of partnership and his removal from the management is unjustifiable. (Art. 1927)
5] Notice of revocation
a. If the agency has been entrusted for the purpose of contracting with specified persons, the principal must give a timely notice of the revocation to such third persons.
Without such notice, said