commision agent

-one who is engaged in the business of buying & selling for a principal of
personal property, which for this purpose has to be placed in his possession & at
his disposal
cestui que trust
-another term for beneficiary, a person who has beneficial interest in the property
held in trust
acquisitive prescription
-mode of acquiring ownership were property is acquired thru lapse of time.
contract of partnership
- a contract where two or more persons bind themselves to contribute money,
property, or industry to a common fund with the intention of dividing the profits
among themselves. two or more persons may also form partnership for the
exercise of profession. where immovable property is contributed, a public
instrument must be necessary.
guaranteed commission
-additional compensation for the risk of collection
what are the different cases or instances where an agent shall have to secure a
SPA in order to bind his principal?
-to make such payments as are not usually considered as acts of administration
-to waive any obligations gratuituosly
-to affect novations which put an end to obligations arleady in existence at the
time the agency was constituted
-to bind the principal in a contract of partnership
-to accept or repudate inheritance
-to ratify or recognize obligations contracted before agency
-to obligate the principal as surety
what is the effect when 2 contracts are entered which are incompatible with each
other?
-when agent & principal entered into seperate contracts which are incompatible
with each other, the contract that which has prior date shall be preferred, without
prejudice to the provisions of art 1544 (law on double sale)
what is the rule when agents advances necessary expenses? is the agent
allowed indemnity in case of damages in the execution of the agency?
-the principal must reimburse the agent for the advances that was made thereof.
in the event that the business or undertaking was unsuccessful the agent must
still be reimbursed provided that the agent is free from fault.
the reimbursement must also include interest (art 1912)
doctrince of necessity
-is the doctrine which mandates that by virtue of existnce of an emergency, the

authority of an agent is correspondenly enlarged to cope with the necessities of

the moment.
the conditions are as follows:
-real existence of emergency
-inability of the agent to communicate with the principal
-the exercise of additional authority for the principal's own protection
-the adoption of fairly reasonable means
-the ceasing of authority the moment the emergency no longer demands
the same.
when is the principal not liable for the expenses of the agent?
-if the agent acted in contarvention of the principals instruction
-when the expenses were due to fault of the agent
-when it is stipluated that the expenses would be borne by the agent
-when the agent incurred them with knowledge that an unfavorbale result would
ensue
how is contract of agency extinguished?
-Expiration
-Death
-Withdrawal
-Accomplishment
-Revocation
-Dissolution
may the principal unilaterally revoke the agency?
-general rule is that the principal may revoke the agency at will
-exemption is when a bilateral contract depends on it, if it is a means of fulfilling
on obligation already contracted, if the partner is appointed manager of a
contract of partnership & his removal from office is unjustifiable, & if it has been
constituted in the common interest of the prinicipal & of the agent or in the
interest of a 3rd person who has accepted the stipulation in his favor.
what is the effect when the pratner derives profits & benefits w/o the consent of
the other partners?
-every partner must account to the partnership for any benefit & hold as trustee
for any profits derived by him w/o the consent of the other partners from any
transaction connected with the formation, conduct, or liquidation of the
partnership of from any use by him of its property. (art 1807)
may a partner demand formal account?
-yes the partner can demand formal coounting in the following cases:
-if he is wrongfully excluded from the partnership business or possession of its
property by his co-partners
-if the right exists under the terms of any agreement
-as provided by art 1807
-whenever other circumstances render it just & reasonable

may a general partner be a limited partner at the same time?

-that partner can be allowed to be both limited & general at the same time
provided that such fact will be stated in the certifiacte.
-he shall have all rights & powers & subject to all restrictions of a general partner,
except in respect to his contribution
what are the 2 kinds of trust? how is trust proven?
-express trust -created by parties
-implied trust -created by operation of law
-resulting trust
-constructive trust
-implied trust can be proven by parole evidence, express trust cannot be proven
by parole evidence there must documentary evidences.
in the winding up of general partnership which creditors are preferred?
-those owning the creditors other than the partners
-those owning to partners other that the capital or profit
-those owning to partners with respect to capital
-those owning to partners with respect to profit
-all partners are liable solidarily with the partnership. everything chargable to the
partnership under art.1822 & art. 1823