NATSCI

124
notice binding on the principal, even when in fact the principal never became aware thereof. Air France v. Court of Appeals, 126 SCRA 448 (1983). e. Personal, Fiduciary and Revocable The relations of an agent to his principal are fiduciary and in regard to the property forming the subject matter of the agency, he is estopped from acquiring or asserting a title adverse to that of the principal. Severino v. Severino, 44 Phil. 343 (1923). By reason of the personal, representative and derivative nature of agency, agency is extinguished by the death of the principal or agent. Rallos v. Felix Go Chan & Sons Realty Corp., 81 SCRA 251 (1978). A contract of agency is generally revocable as it is a personal contract of representation based on trust and confidence reposed by the principal on his agent. As the power of the agent to act depends on the will and license of the principal he represents, the power of the agent ceases when the will or permission is withdrawn by the principal. Thus, generally, the agency may be revoked by the principal at will. Republic v. Evangelista, 466 SCRA 544 (2005). In an agency, the principal’s personality is extended through the facility of the agent—the agent, by legal fiction, becomes the principal, authorized to perform all acts which the latter would have him do. Such a relationship can only be effected with the consent of the principal, which must not, in any way, be compelled by law or by any court. The Agreement itself between the parties states that “either party may terminate the Agreement without cause by giving the other 30 days’ notice by letter, telegram or cable.” Orient Air Services v. Court of Appeals, 197 SCRA 645 (1991). 1 5. Distinguished from Other Similar Contracts: a. From Employment Contract The relationship between the corporation which owns and operates a theatre, and the individual it hires as a security guard to maintain the peace and order at the entrance of the theatre is not that of principal and agent, because the principle of representation was in no way involved. The security guard was not employed to represent the defendant corporation in its dealings with third parties; he was a mere employee hired to perform a certain specific duty or task, that of acting as special guard and staying at the main entrance of the movie house to stop gate crashers and to maintain peace and order within the premises. Dela Cruz v. Northern Theatrical Enterprises, 95 Phil 739 (1954). 1 Litonjua, Jr. v. Eternit Corp., 490 SCRA 204 (2006).

description

case

Transcript of NATSCI

notice binding on the principal, even when in fact the principal never became awarethereof. Air France v. Court of Appeals, 126 SCRA 448 (18!".e. Personal, Fiduciary and Revocable#herelation$ofanagenttohi$principal are%d&ciar'andinregardtothepropert'forming the $&b(ect matter of the agenc', he i$ e$topped from ac)&iring or a$$erting a titleadver$e to that of the principal.Severino v. Severino, 44 *hil. !4! (12!".+' rea$on of the personal, representative and derivative nat&re of agenc', agenc' i$e,ting&i$hed b' the death of the principal or agent. Rallos v. Felix Go Chan & Sons RealtyCorp., 81 SCRA 2-1 (1.8".A contract of agenc' i$ generall' revocable a$ it i$ a per$onal contract of repre$entationba$ed on tr&$t and con%dence repo$ed b' the principal on hi$ agent. A$ the power of theagent to act depend$ on the will and licen$e of the principal he repre$ent$, the power oftheagent cea$e$ whenthe will or permi$$ion i$ withdrawn b' theprincipal. Thus,generally, the agency may e revo!ed y the principal at "ill.Repulic v. #vangelista, 466SCRA -44 (2//-".0n an agenc', the principal1$ per$onalit' i$ e,tended thro&gh the facilit' of the agent2the agent, b' legal %ction, become$ the principal, a&thori3ed to perform all act$ which thelatter wo&ld have him do. S&ch a relation$hip can onl' be e4ected with the con$ent of theprincipal, which m&$t not, in an' wa', becompelledb' lawor b' an' co&rt. #heAgreement it$elf between the partie$ $tate$ that 5either part' ma' terminate theAgreement witho&t ca&$e b' giving the other !/ da'$1 notice b' letter, telegram or cable.6Orient Air Services v. Court of Appeals, 197 SCRA 645 (1991).15. is!in"uis#ed $ro% &!#er Si%ilar Con!rac!s'a. Fro% (%)loy%en! Con!rac!#he relation$hip between the corporation which own$ and operate$ a theatre, and theindivid&al it hire$ a$ a $ec&rit' g&ard to maintain the peace and order at the entrance ofthe theatre i$ not that of principal and agent, beca&$e the principle of repre$entation wa$innowa' involved.#he$ec&rit' g&ard wa$not emplo'ed torepre$entthe defendantcorporation in it$ dealing$ with third partie$7 he wa$ a mere emplo'ee hired to perform acertain$peci%cd&t'orta$8, thatofactinga$$pecial g&ardand$ta'ingatthemainentranceof themovieho&$eto$topgatecra$her$andtomaintainpeaceandorderwithin the premi$e$.$ela Cru% v. &orthern Theatrical #nterprises, - *hil .! (1-4".+&t to $et the record $traight, the concept of a $ingle per$on having the d&al role ofagentandemplo'eewhiledoingthe$ameta$8i$anovel oneino&r(&ri$pr&dence,which m&$t be viewed with ca&tion e$peciall' when it i$ devoid o$ any *uris)ruden!ialsu))or! or )receden!. All the$e, read witho&t an' clear &nder$tanding of %ne legaldi$tinction$, appear to $pea8 of control b' the in$&rance compan' over it$ agent$. #he'are, however, control$ aimed onl' at $peci%c re$&lt$ in &nderta8ing an in$&rance agenc',andare, infact, parameter$ $et b' lawinde%ninganin$&ranceagenc' andtheattendant d&tie$ and re$pon$ibilitie$ an in$&rance agent m&$t ob$erve and &nderta8e.#he' do not reach the level of control into the mean$ and manner of doing an a$$ignedta$8 that invariabl' characteri3e$ an emplo'ment relation$hip a$ de%ned b' labor law.1Litonjua, Jr. v. Eternit Corp., 490 SCRA 204 (2006).Tongko v. The Manufacturers Life Insurance Co. (Phils.), Inc., 64+ SCRA ,95(-+11).b. Fro% Con!rac! $or a Piece.o$./or0#a8ing into con$ideration the fact$ that the operator owed hi$ po$ition to the compan'and the latter co&ld remove him or terminate hi$ $ervice$ at will7 that the $ervice $tationbelonged to the compan' and bore it$ tradename and the operator $old onl' the prod&ct$of the compan'7 that the e)&ipment &$ed b' the operator belonged to the compan' andwere(&$t loanedtotheoperator andthecompan'too8chargeof their repair andmaintenance7 that an emplo'ee of the compan' $&pervi$ed the operator and cond&ctedperiodic in$pection of the compan'9$ ga$oline and $ervice $tation7 that the price of theprod&ct$ $old b' the operator wa$ %,ed b' the compan' and not b' the operator7 andthat he wa$ a mere agent, the %nding of the Co&rt of Appeal$ that the operator wa$ anagent of the compan' and not an independent contractor $ho&ld not be di$t&rbed. Shellv. Firemen's (ns. Co., 1// *hil .-. (1-.".c. Fro% 1ro0er #he )&e$tion a$ to what con$tit&te$ a $ale $o a$ to entitle a real e$tate bro8er to hi$commi$$ion$ i$ e,ten$ivel' annotated in the ca$e of )unney vs. *ealey (:ebra$8a" . . . 44;aw Rep. Ann. -! 5#heb&$ine$$of areal e$tatebro8er or agent, generall', i$onl'to%ndap&rcha$er, andthe$ettledr&lea$$tatedb'theco&rt$i$that, intheab$enceof ane,pre$$ contract between bro8er and hi$ principal, the implication generall' i$ that thebro8er become$ entitled to the &$&al commi$$ion$ whenever he bring$ to hi$ principal apart' who i$ able and willing to ta8e the propert' and enter into a valid contract &pon theterm$ then named b' the principal, altho&gh the partic&lar$ ma' be arranged and thematter negotiatedandcompletedbetweentheprincipal andthep&rcha$er directl'.6+acondray & Co. v. Sellner, !! *hil. !./ (116".5#hed&tie$andliabilit'ofabro8ertohi$emplo'eraree$$entiall'tho$ewhichanagent owe$ to hi$ principal. Con$e)&entl', the deci$ive legal provi$ion$ on determiningwhether a bro8er i$ mandated to give to the emplo'er the propina or gift received fromthe b&'er wo&ld be Article$ 181 and 1/ of the Civil Code.6 (?et the fact$ did indicateclearl' that the real e$tate bro8er wa$ appointed a$ an e,cl&$ive agent." o!ingo v.o!ingo, 4- SCRA 1,1 (1971).@here the p&rported agent wa$ orall' given a&thorit' to 5follow &p6 the p&rcha$e ofthe %re tr&c8 with the m&nicipalgovernment, there i$ no a&thorit' to $ellnor ha$ thep&rported agent been empowered to ma8e a $ale for and in behalf of the $eller.Guardexv. &)RC, 11 SCRA 48. (1/".@hentheterm$oftheagenc'arrangementi$tothee4ectthatentitlementtothecommi$$ion wa$ contingent on the p&rcha$e b' a c&$tomer of a %re tr&c8, the implicitconditionbeingthat theagentwo&ldearnthecommi$$ionif hewa$in$tr&mental inbringing the $ale abo&t. Since the agent had nothing to do with the $ale of the %re tr&c8,and i$ not therefore entitled to an' commi$$ion at all. Guardex v. &)RC, 11 SCRA 48.(1/".A ro!eri$ one who i$ engaged,forother$,on a commi$$ion,negotiating contract$relative to propert' with the c&$tod' of which he ha$ no concern7 the negotiator betweenthe other partie$, never acting in hi$ own name b&t in the name of tho$e who emplo'edhim. Ai$occ&pationi$toringthepartiestogether, inmatterof trade, commerceornavigation.Sch!i" an" O#erl$, Inc. v. %&L Martine', 166 SCRA 49, (1922).Anagent receive$ a commi$$ion &pon the $&cce$$f&l concl&$ion of a $ale. Bn the other hand,a ro!erearn$ hi$ pa' merely y ringing the uyer and the seller together, even if no$ale i$ event&all' made.Tan v. (ullas, ,9, SCRA ,,4 (-++-).0nrelationthereto, wehaveheldthat theterm5proc&ringca&$e6inde$cribingabro8er1$ activit', refer$ to a ca&$e originating a $erie$ of event$ which, witho&t brea8 intheir contin&it', re$&lt in the accompli$hment of the prime ob(ective of the emplo'mentof the bro8er2prod&cing a p&rcha$er read', willing and able to b&' on the owner1$ term$.#o be regarded a$ the 5proc&ring ca&$e6 of a $ale a$ to be entitled to a commi$$ion, abro8er1$ e4ort$ m&$t have been the fo&ndation on which the negotiation$ re$&lting in a$ale began. Me"rano v. Court of Appeals, 45- SCRA 77 (-++5).2A reale$tate bro8er i$ one who negotiate$ the $ale of realpropertie$. Ai$ b&$ine$$,generall' $pea8ing, i$ onl' to %nd a p&rcha$er who i$ willing to b&' the land &pon term$%,ed b' the owner. Ae ha$ no a&thorit' to bind the principal b' $igning a contract of $ale.0ndeed, an a&thorit' to %nd a p&rcha$er of real propert' doe$ not incl&de an a&thorit' to$ell. Liton)ua, &r. v. *ternit Corp., 49+ SCRA -+4 (-++6).Since bro8erage relation$hip i$ nece$$ar' a contract for the emplo'ment of an agent,principle$ of contract law al$o govern the bro8erCprincipal relation$hip. xAacus SecuritiesCorp. v. Ampil, 48! SCRA !1- (2//6".Contrar' tothe appellateco&rt9$ concl&$ion,thi$ arrangement$how$anagenc'.Anagent receive$ a commi$$ion &pon the $&cce$$f&l concl&$ion of a $ale. Bn the other hand,a bro8er earn$ hi$ pa' merel' b' bringing the b&'er and the $eller together, even if no$ale i$ event&all' made. (,iter - the issue "as "hether it "as an independentdistriutorof .+/carsinthe0hilippines"x*ahnv. Courtof Appeals, 266SCRA-!.(1.".d. Fro% Sale@hen the term$ of the agreement compel$ the p&rported agent to pa' for the prod&ct$received from the p&rported principal within the $tip&lated period, even when there ha$been no $ale thereof to the p&blic, the &nderl'ing relation$hip i$ not one of contract ofagenc' to $ell, b&t one of act&al $ale. A real agent doe$ not a$$&me per$onalre$pon$ibilit' for the pa'ment of the price of the ob(ect of the agenc'7 hi$ obligation i$merel' to t&rnCover to the principal the proceed$ of the $ale once he receive$ them fromthe b&'er. Con$e)&entl', $ince the &nderl'ing agreement i$ not an agenc' agreement, itcannot be revo8ed e,cept for ca&$e.1uiroga v. 0arsons, !8 *hil -/2 (118".@hen &nder the agreement the p&rported agent become$ re$pon$ible for an' change$in the ac)&i$ition co$t of the ob(ect he ha$ been a&thori3ed to p&rcha$e from a $&pplier inthe Dnited State$, the &nderl'ing agreement i$ not an contract of agenc' to b&', $ince atr&e agent doe$ not bear an' ri$8 relating to the $&b(ect matter or the price. +eing acontract of $aleandnot agenc', an'pro%t$ reali3edb'thep&rportedagent fromdi$co&nt$ receivedfromtheAmerican$&pplier pertainedtoit withnoobligationtoacco&nt for it, m&ch le$$ to t&rn it over, to the p&rported principal.Gon%alo 0uyat v. Arco,.2 *hil. 4/2 (141".2Reiterated in 0hil. *ealth2care 0roviders 3+axicare4 v. #strada, -42 SCRA 616 (2//8". #hedi$tinction$betweena$aleandanagenc'arenotdiEc&lttodi$cernandthi$Co&rt, a$ earl' a$ 1./, had alread' form&lated the g&ideline$ that wo&ld aid indi4erentiating the two (2" contract$. < that the primordial di4erentiating con$iderationbetweenthetwo(2" contract$i$thetran$ferof owner$hiportitleoverthepropert'$&b(ect of the contract. 0n an agenc', the principal retain$ owner$hip and control over thepropert' and the agent merel' act$ on the principal9$ behalf and &nder hi$ in$tr&ction$ inf&rtherance of the ob(ective$ for which the agenc' wa$ e$tabli$hed. Bn the other hand,the contract i$ clearl' a $ale if the partie$ intended that the deliver' of the propert' wille4ect a relin)&i$hment of title, control and owner$hip in $&ch a wa' that the recipientma' do with the propert' a$ he plea$e$. Spouses 5iloria v. Continental Airlines, (nc., F.R.:o. 188288.16 Gan&ar'2/12.33. F&R4S A5 635S &F A7(5C8 1. 9o: A"ency 4ay 1e Cons!i!u!ed (Ar!. 1269)#hereare$omeprovi$ion$of lawwhichre)&irecertainformalitie$for partic&larcontract$= the%r$ti$whentheformi$re)&iredforthevalidit'of thecontract7 the$econd i$ when it i$ re)&ired to ma8e the contract e4ective a$ again$t third partie$7 andthe third i$ when the form i$ re)&ired for the p&rpo$e of proving the e,i$tence of thecontract. A contract of agenc' to $ell on commi$$ion ba$i$ doe$ not belong to an' ofthe$e three categorie$, hence it i$ valid and enforceable in whatever form in ma' beenteredinto. Con$e)&entl', whentheagent $ign$her $ignat&reonan'faceof thereceipt $howing that $he receive$ the (ewelr' for her to $ell on commi$$ion, $he i$ bo&ndto the obligation$ of an agent. #he e,act po$ition of the agent1$ $ignat&re in the receipt(in thi$ ca$e near the de$cription of the good$ and not on top of her printed name" i$immaterial. )im v. Court of Appeals, 2-4 SCRA 1./ (16".a. Fro% Side o$ !#e Princi)al (Ar!. 1269)@hen the b&'er$Ca2retrofailed for $everal'ear$ to clear their title to the propert'p&rcha$ed and allowed the $ellerCa2retroto remain in po$$e$$ion in $pite of thee,pirationof theperiodof redemption, thenthee,ec&tionof thememorand&mofrep&rcha$e b' the b&'er$1 $onCinClaw, which $tood &nrep&diated for man' 'ear$,con$tit&ted an implied agenc' &nder Article 186 of the Civil Code, from their $ilence orlac8 of action, or their fail&re to rep&diate the agenc'.Conde v. Court of Appeals, 11SCRA 24- (182".@here the principal ha$ ac)&ie$ced in the act of hi$ agent for a long period of time,and ha$ received and appropriated to hi$ own &$e the bene%t$ re$&lt in from the act$ ofhi$ agent, co&rt$ $ho&ld be $low in declaring the act$ of the agent n&ll and void.)inan v.0uno, !1 *hil. 2- (11-".b. Fro% Side o$ !#e A"en! (Ar!s. 127+, 1271 and 127-)c. Fro% Side o$ ;#ird Par!iesniversal A"encyAn agent may be (1) universal; (2) general, or () s!e"ial. A universal agent is one aut#ori$e% to %o all a"ts&or #is !rin"i!al'#i"# "an la'&ully be %elegate% to an agent. So &ar as su"# a "on%ition is !ossible, su"# anagent may be sai% to #ave universal aut#ority. A general agent is one aut#ori$e% to %o all a"ts !ertaining to abusiness o& a "ertain (in% or at a !arti"ular !la"e, or all a"ts !ertaining to a business o& a !arti"ular "lass orseries. )e #as usually aut#ority eit#er e*!ressly "on&erre% in generalterms or in e&&e"t ma%e generalby t#eusages, "ustomsornatureo& t#ebusiness'#i"# #e is aut#ori$e%totransa"t.An agent, t#ere&ore,'#o isem!o'ere% to transa"t all t#e business o& #is !rin"i!al o& a !arti"ular (in% or in a !arti"ular !la"e, 'oul% &or t#isreason, be or%inarily %eeme% a general agent. A special agent is one aut#ori$e% to %o some !arti"ular a"t or toa"t u!on some !arti"ular o""asion. )e a"ts usually in a""or%an"e 'it# s!e"i&i" instru"tions or un%er limitationsne"essarily im!lie% &rom t#e nature o& t#e a"t to be %one.Siasat v. IAC, 19 SCRA 2+ (19+,).(-) S)ecial or Par!icular A"ency#herightof anagent toindor$ecommercial paper (chec8$" i$aver're$pon$iblepower andwill not belightl'inferred. A$ale$manwitha&thorit'tocollect mone'belonging to hi$ principal doe$ not have the implied a&thorit' to indor$e chec8$ receivedin pa'ment. An' per$on ta8ing chec8$ made pa'able to a corporation which can act onl'b'agent$doe$$oathi$peril, andm&$tabideb'thecon$e)&enceiftheagentwhoindor$e$ the $ame i$ witho&t a&thorit'. (nsular $rug v. 0&., -8 *hil. 684 (1!!".b. /#e!#er 3! Covers ?e"al 4a!!ers(1) A!!orney.a!.?a:Bnl' the emplo'ee, not hi$ co&n$el, can imp&gn the con$ideration of the compromi$ea$ being &ncon$cionable. #he relation of attorne' and client i$ in man' re$pect$ one ofagenc', and the general r&le$ of agenc' appl' to $&ch relation2the circ&m$tance$ ofthi$ ca$e indicate that the emplo'ee1$ co&n$el acted be'ond the $cope of hi$ a&thorit'in )&e$tioning the compromi$e agreement. #hat a client ha$ &ndo&btedl' the right tocompromi$e a $&it witho&t the intervention of hi$ law'er cannot be gain$aid, the onl')&ali%cation being that if $&ch compromi$e i$ entered into with the intent of defra&dingthe law'er of the fee$ (&$tl' d&e him, the compromi$e m&$t be $&b(ect to the $aid fee$.820hil +arine, (nc. v. &)RC, -61 SCRA 6.- (2//8".Anattorne'cannot, witho&t aclient1$a&thori3ation, $ettletheactionor $&b(ectmatter of the litigation even when he believe$ that $&ch a $ettlement will be$t $erve hi$client1$ intere$t.0hilippine Aluminum /heels, (nc. v. FASG( #nterprises, (nc., !42 SCRA.22 (2///". (-) A!!orney.in.Fac!#he relation$hip of attorne' and client i$ in man' re$pect$ one of agenc', and thegeneral r&le$ of agenc' appl' to $&ch relation. #he act$ of an agent are deemed the act$of the principal onl' if the agent act$ within the $cope of hi$ a&thorit'. #h&$, when thelaw'er %le$ an oppo$ition to the compromi$e agreement that ha$ been validl' enteredinto b' hi$ client, he i$ acting be'ond the $cope of hi$ a&thorit'. T820hil. +arine, (nc. v.&)RC, -61 SCRA 6.- (2//84.c. /#e!#er3!CoversAc!so$ Ad%inis!ra!ionorAc!so$ o%inion' @Po,ersofAttorne$A(1) For% o$ Po:ers o$ A!!orney0naca$einvolvinga&thorit'toact inbarangga'conciliationca$e$coveringane(ectment for fail&re to pa' rental$= 5A power of attorne' i$ an in$tr&ment in writing b'which one per$on, a$ principal, appoint$ another a$ hi$ agent and confer$ &pon him thea&thorit' to perform certain $peci%ed act$ or 8ind$ of act$ on behalf of the principal. #hewritten a&thori3ation it$elf i$ the power of attorne', and thi$ i$ clearl' indicated b' thefact that it ha$ al$o been called a 5letter of attorne'.6/ee v. $e Castro, -62 SCRA 6-,.12 (2//8".#he;etter datedGan&ar'16, 16relied&ponb'thepetitioner$wa$$ignedb're$pondent Hernande3 alone, witho&t an' a&thorit' from the re$pondent$Cowner$. #herei$ noact&ationof re$pondent Hernande3 inconnectionwithher dealing$ withthepetitioner$. A$$&ch, $aidletter i$notbindingonthere$pondent$a$owner$of the$&b(ect propertie$. Liton)ua v. -ernan"e', 4-7 SCRA 472 (-++4).(-) 7eneral Po:er o$ A!!orney (Ar!. 1277)A power of attorne' i$an instrument in "ritingb' which one per$on, a$ principal,appoint$ another a$ hi$ agent and confer$ &pon hi$ the a&thorit' to perform certain act$or 8ind$ of act$ on behalf of the principal. /ee v. $e Castro, -62 SCRA 6- (2//8".:onethele$$, we$tre$$thatthepowerof admini$trationdoe$notincl&deact$ofdi$po$ition or enc&mbrance, which are act$ of $trict owner$hip. A$ $&ch, an a&thorit' todi$po$ecannotproceedfromana&thorit'toadmini$ter, andvicever$a, forthetwopower$ ma' onl' be e,erci$ed b' an agent b' following the provi$ion$ on agenc' of theCivil Code (from Article 18.6 to Article 18.8".Agga#ao v. Parulan &r., 6-9 SCRA56- (-+1+).(,) S)ecial Po:er o$ A!!orneyKven if a doc&ment i$ de$ignated a$ a general power of attorne', the re)&irement ofa$pecial power of attorne'i$ met if therei$ aclear mandatefromtheprincipal$peci%call' a&thori3ing the performance of the act.#state of )ino ,la6uer v. ,ng9oco,-6! SCRA !.! (2//8".0t i$ a general r&le that a power of attorne' m&$t be $trictl' con$tr&ed7 thein$tr&ment will be held to grant onl' tho$e power$ that are $peci%ed, and the agent ma'neither go be'ond nor deviate from the power of attorne'.,laguer v. 0urugganan, 8r.,-1- SCRA 46/ (2//.".Alt#oug# a -S!e"ial .o'er o& Attorney/ 'as issue% by t#e insuran"e "om!any to its agen"y manager, it'or%ings s#o' t#at it soug#t only to establis# an agen"y t#at "om!rises all t#e business o& t#e !rin"i!al 'it#int#e %esignate% lo"ality, but "ou"#e% in general terms, an% "onse0uently 'as limite% only to a"ts o&a%ministration. A general !o'er !ermits t#e agent to %o all a"ts &or '#i"# t#e la' %oes not re0uire a s!e"ial!o'er. 1#us, t#e a"ts enumerate% in or similar to t#ose enumerate% in t#e -S!e"ial .o'er o& Attorney/ (i.e.,really a general !o'er o& attorney) %i% not re0uire a s!e"ial !o'er o& attorney, an% "oul% only "over a"ts o&a%ministration. Dominion Insurance Corp. v. Court of Appeals, 376 SCRA 239 (2002).Kvenwhenthetitlegiventoadeedi$a$a5Feneral *owerofAttorne',6b&tit$operative cla&$e contain$ an a&thorit' to $ell, it con$tit&ted the re)&i$ite $pecial powerof attorne' to $ell a piece of land. 5#h&$, there wa$ no need to e,ec&te a $eparate and$pecial power of attorne' $ince the general power of attorne' had e,pre$$l' a&thori3edthe agent or attorne' in fact the power to $ell the $&b(ect propert'. #he $pecial power ofattorne' can be incl&ded in the general power when it i$ $peci%ed therein the act ortran$action for which the $pecialpower i$ re)&ired.6 .eloso v. Court of Appeals,-6+ SCRA 59, (1996).@hen an agent ha$ been given general control and management of the b&$ine$$, hei$deemedtohavepower toemplo'$&chagent$andemplo'ee$a$are&$&al andnece$$ar' in the cond&ct of the b&$ine$$, and need$ no $pecial power of attorne' for$&ch p&rpo$e. :u Chuc! v. ;7ong )i 0o,6 46 *hil. 6/8 (124". An attorne'CinCfact empowered to pa' the debt$ of the principal and to emplo' legalco&n$eltodefend theprincipal1$ intere$t, ha$ certainl' theimpliedpower topa'onbehalf of the principal the attorne'1$ fee$ charged b' the law'er.+unicipal Council of(loilo v. #vangelista, -- *hil. 2/ (1!/".A coCowner who i$ made an attorne'CinCfact, with the $ame power and a&thorit' todeal with the propert' which the principal might or co&ld have had if per$onall' pre$ent,ma'adoptthe&$&al legal mean$toaccompli$htheob(ect, incl&dingacceptanceof$ervice and engaging of legal co&n$el to pre$erve the owner$hip and po$$e$$ion of theprincipal1$ propert'. Government of 0( v. /agner, -4 *hil. 1!2 (12".Contract$ of agenc', a$ well a$ a general power of attorne', m&$t be interpreted inaccordance with the lang&age &$ed b' the partie$. #he real intention of the partie$ i$primaril' to be determined from the lang&age &$ed. #he intention i$ to be gathered fromthe whole in$tr&ment. 0n ca$e of do&bt, re$ort m&$t be had to the $it&ation,$&rro&nding$, and relation$ of the partie$. @henever it i$ po$$ible, e4ect i$ to be givento ever' word or cla&$e &$ed b' the partie$. 0t i$ to be pre$&med that the partie$ $aidwhat the' intended to $a' and that the' &$ed each word or cla&$e with $ole p&rpo$e,and that p&rpo$e i$, if po$$ible, to be a$certained and enforced. 0f the contract be opento two con$tr&ction$, one of which wo&ld while the other wo&ld overthrow it, the formeri$ to be cho$en. 0f b' one con$tr&ction the contract wo&ld be illegal, and b' anothere)&all' permi$$ible con$tr&ction wo&ld be lawf&l, the latter m&$t be adopted. #he act$of the partie$ will be pre$&med to be done in conformit' with and not contrar' to theintent of the contract. #he meaning of general word$ m&$t be con$tr&ed with referenceto the $peci%c ob(ect to be accompli$hed and limited b' the recital$ made in referenceto $&ch ob(ect. )inan v. 0uno, !1 *hil. 2- (11-".(4) (B)ress Po:er o$ A!!orney (Bcludes Po:ers o$ Ad%inis!ra!ion (e.g.,7eneral Po:er o$ A!!orney)#hein$tr&mentwhichgrant$totheagentthepower5#ofollowC&p, a$8, demand,collect and receipt for m' bene%t indemnitie$ or $&m d&e me relative to the $in8ing ofL.M. :KLBS in the vicinit' of Kl Gadida, Ca$ablanca, Lorocco on the evening of Hebr&ar'1., 186,6 i$ a $pecial power of attorne', e,cl&de$ an' intent to grant a general powerof attorne' or to con$tit&te a &niver$al agenc'. +eing $pecial power$ of attorne', the'm&$t be$trictl' con$tr&ed. #hein$tr&ment cannot bereadto givepower to theattorne'CinCfact 5to obtain, receive, receipt from6 the in$&rance compan' the proceed$ari$ing from the death of the $eamanCin$&red, e$peciall' when the commercial practicefor gro&p in$&rance of thi$ nat&re i$ that it i$ the emplo'erCpolic'holder who too8 o&tthe polic' who i$ empowered to collect the proceed$ on behalf of the covered in$&red ortheir bene%ciarie$. Pine"a v. Court of Appeals, --6 SCRA 754 (199,).d. Cases /#ere S)ecial Po:ers o$ A!!orney Are 5ecessary (Ar!. 1272)(1) ;o 4a0e Pay%en!s @As Are /ot 0suall$ Consi"ere" as Acts ofA"!inistrationA2n t#e "ase o& t#e area manager o& an insuran"e "om!any, it 'as #el% t#at t#e !ayment o& "laims is not ana"t o& a%ministration, an% t#at sin"e t#e settlement o& "laims 'as not in"lu%e% among t#e a"ts enumerate% int#e S!e"ial.o'ero& Attorney issue% by t#e insuran"e "om!any, nor iso& a "#ara"ter similar to t#e a"tsenumerate% t#erein, t#en a s!e"ial !o'er o& attorney 'as re0uire% be&ore su"# area manager "oul% settle t#einsuran"e "laims o& t#e insure%. Conse0uently, t#e amounts !ai% by t#e area manager to settle su"# "laims"annot bereimburse%&romt#e!rin"i!al insuran"e"om!any.DominionInsuranceCorp. v.Court ofAppeals, 376 SCRA 239 (2002).(-) ;o (Cec! 5ova!ions /#ic# Pu! an (nd !o &bli"a!ions Already in (Bis!encea! !#e ;i%e !#e A"ency /as Cons!i!u!ed(,) ;oCo%)ro%ise, ;oSub%i! Dues!ions!oArbi!ra!ion, ;oRenounce!#eRi"#! !o A))eal $ro% a Eud"%en!, ;o /aive &b*ec!ions !o !#e Fenue o$ anAc!ion, or ;o Abandon a Prescri)!ion Already AcGuired;#e )o:er !o co%)ro%ise eBcludes !#e )o:er !o sub%i! !o arbi!ra!ion.3! :ould alsobe reasonable !o conclude !#a! !#e)o:er !o sub%i! !oarbi!ra!ion does no! carry :i!# i! !#e )o:er !o co%)ro%ise. (Ar!. 122+"@hen an agent ha$ been empowered to $ell hemp in a foreign co&ntr', that e,pre$$power carrie$ with it the implied power to ma8e and enter into the &$&al andc&$tomar'contract for it$$ale, which$alecontract ma'providefor $ettlement ofi$$&e$b' arbitration. 5@eare clearl'of theopinion that the contractin)&e$tioni$valid and binding &pon the defendant NprincipalO, and that a&thorit' to ma8e and enterintoit for andonbehalf of thedefendant NprincipalO, b&t a$amatter of fact thecontract wa$ legall' rati%ed and approved b' the $&b$e)&ent act$ and cond&ct$ of thedefendant NprincipalO.6 Roinson Fleming v. Cru%, 4 *hil 42 (126".#r&e, $aid co&n$el a$$erted that he had verbal a&thorit' to compromi$e the ca$e.#he R&le$, however, re)&ire, for attorne'$ to compromi$e the litigation of their client$,a 5$pecial a&thorit'6 (Section 2!, R&le 1!8, R&le$ of Co&rt". And while the $ame doe$not $tate that the $pecial a&thorit' be in writing, the co&rt ha$ ever' rea$on to e,pect,that, if not in writing, the $ame be d&l' e$tabli$hed b' evidence other than the $elfC$erving a$$ertion of co&n$el him$elf that $&ch a&thorit' wa$ verball' given to him. Hor,a&thorit' to compromi$e cannot lightl' be pre$&med. 1o!e Insurance Co. v. 0SL,-1 SCRA 26, (1967).,ld Civil Code= #he power to bring $&it in order to collect $&m$ of mone' accr&ing inthe ordinar' co&r$e of b&$ine$$ 5a$ properl' belonging to the cla$$ of act$ de$cribed inarticle1.1!of theCivil Codea$act$of P$trict owner$hip1. 0t $eem$rather tobe$omething which i$ nece$$aril' a part of the mere admini$tration of $&ch a b&$ine$$ a$that de$cribed in the in$tr&ment in )&e$tion and onl' incidentall', if at all, involving apower to di$po$e of the title to propert'.6 N0n an' event, the provi$ion to 5e,act thepa'ment of $&m$ of mone' 5b' legal mean$6 wa$ con$tr&ed to be e,pre$$ power to$&e.OGermann v. $onaldson, 1 *hil 6! (1/1".(4) ;o /aive Any &bli"a!ion 7ra!ui!ously(5) ;o (n!er 3n!o Any Con!rac! by /#ic# !#e &:ners#i) o$ an 3%%ovable 3s;rans%i!!ed or AcGuired (i!#er 7ra!ui!ously or $or a FaluableConsidera!ionAl$o, &nder Article 18.8 of the Civil Code, a $pecial power of attorne' i$ nece$$ar'for an agent to enter into a contract b' which the owner$hip of an immovable propert'i$ tran$mitted or ac)&ired, either grat&ito&$l' or for a val&able con$ideration. 0ahud v.Court of Appeals, -. SCRA 1! (2//".According to the provi$ion$ of Article 18.4 on Agenc', when the $ale of a piece ofland or an' intere$t therein i$ made thro&gh an agent, the a&thorit' of the latter $hallbe in writing. Ab$ent thi$ re)&irement, the $ale $hall be void. Al$o, &nder Article 18.8,a $pecial power of attorne' i$ nece$$ar' in order for an agent to enter into a contractb' which the owner$hip of an immovable propert' i$ tran$mitted or ac)&ired, eithergrat&ito&$l' or for a val&able con$ideration. *state of Lino Olaguer v. Ong)oco, 56,SCRA ,7, (-++2).@hile the law re)&ire$ a $pecial power of attorne', the general power of attorne'wa$ $&Ecient in thi$ ca$e, a$ Blag&er wa$ e,pre$$l' empowered to $ell an' of Mirgilio1$propertie$7andto$ign, e,ec&te,ac8nowledgeanddeliver'an'agreementtherefor.Kven if a doc&ment i$ de$ignated a$ a general power of attorne', the re)&irement of a$pecial power of attorne' i$ met if there i$ a clear mandatefromthe principal$peci%call' a&thori3ing the performance of the act. N.ravo2Guerrero v. .ravo, 46- SCRA244 (2//-"O. #he $pecial power of attorne' can be incl&ded in the general power whentheactortran$actionforwhichthe$pecial poweri$re)&iredi$$peci%edtherein.6*state of Lino Olaguer v. Ong)oco, 56, SCRA ,7, (-++2).(5.A) Sale o$ a Piece o$ ?and or 3n!eres! ;#erein (Ar!. 1274= Cit$2Lite %ealt$Inc. v. Court of Appeals, ,-5 SCRA ,25 H-+++I).Ab$ence of a written a&thorit' to $ell a piece of land i$ ipso 9urevoid, preci$el' toprotect the intere$t of an &n$&$pecting owner frombeing pre(&diced b' the&nwarranted act of another. 0ahud v. Court of Appeals, -. SCRA 1! (2//".Dnder Article 18.4, when a $ale of a piece of land or an' intere$t therein i$ thro&ghan agent, the a&thorit' of the agent $hall be in writing, otherwi$e the $ale $hall be void.NSee )iton9ua, 8r. v. #ternit Corp., 4/ SCRA 2/4 (2//6".O :otice that the article doe$ notdeclare the agenc' to be void, b&t the re$&lting contract of $ale e4ected b' the agent.(s the agency itself void< Agenc' ma' be oral &nle$$ the law re)&ire$ a $peci%c form. Aowever, to create orconve' real right$ over immovable propert', a $pecial power of attorne' i$ nece$$ar'.#h&$, when a $ale of a piece of land or an' portion thereof i$ thro&gh an agent, thea&thorit' of the latter $hall be in writing, otherwi$e, the $ale $hall be void. )iton9ua, 8r.v. #ternit Corp., 4/ SCRA 2/4 (2//6".#he Civil Code provide$ that in the $ale of a parcel of land or an' intere$t thereinmade thro&gh an agent, a $pecial power of attorne' i$ e$$ential. NArticle 18.8O. #hi$a&thorit' m&$t be in writing, otherwi$e the $ale $hall be void. NArticle 18.4O6Pine"av. Court of Appeals, ,76 SCRA ---, --2 (-++-).@here in the $pecial power of attorne' the agent wa$ primaril' empowered b' thecorporation to bring an e(ectment ca$e again$t the occ&pant and al$o 5to compromi$e .. . $o far a$ it $hall protect the right$ and intere$t of the corporation in theaforementionedlot$,6 andthat theagent dide,ec&teacompromi$einthelegalproceeding$ %led which $old the lot$ to the occ&pant, the compromi$e agreement thate4ected a $ale of the lot$ i$ void for the power to $ale b' wa' of compromi$e co&ld notbe implied to protect the intere$t$ of the principal to $ec&re po$$e$$ion of thepropertie$. Cos!ic Lu!#er v. Court of Appeals, -65 SCRA 162 (1996).#he e,pre$$ mandate re)&ired b' Article 18.4 to enable an appointee of an agenc'co&ched in general term$ to $ell m&$t be one that e,pre$$l' mention$ a $ale of a pieceof land or that incl&de$ a $ale a$ a nece$$ar' ingredient of the act mentioned. #hepower of attorne' need not contain a $peci%c de$cription of the land to be $old, $&chthat givingtheagentthepowerto$ell 5an'or all tract$, lot$, or parcel$6of landbelonging to the principal i$ ade)&ate. $omingo v. $omingo, 42 SCRA 1!1 (1.1".@hennopartic&lar formalit' i$ re)&iredb' law, r&le$ or reg&lation, thentheprincipal ma' appoint hi$ agent in an' form which might $&it hi$ convenience or that ofthe agent, in thi$ ca$e a letter addre$$ed to the agent re)&e$ting him to %le a prote$t inbehalf of the principal with the Collector of C&$tom$ again$t the apprai$ement of themerchandi$e imported into the co&ntr' b' the principal.7uen%le and Strei=v.Collector of Customs, !1 *hil 646 (11-".@here the nephew in hi$ own name $old a parcelof land with a ma$onr' ho&$econ$tr&cted thereon to the compan', when in fact it wa$ propert' owned b' the &ncle,b&t in the e$tafa ca$e %led b' the compan' again$t the nephew, the &ncle $wore &nderoaththat hehada&thori3ed hi$ nephewto $ell thepropert', the&nclecan becompelledinthecivil actiontoe,ec&tethedeedof $alecoveringthepropert'. 50thaving been proven at the trial that he gave hi$ con$ent to the $aid $ale, it follow$ thatthe defendant conferred verbal, or at lea$t implied, power of agenc' &pon hi$ nephewQ&ran, who accepted it in the $ame wa' b' $elling the $aid propert'. #he principal m&$ttherefore f&l%ll all the obligation$ contracted b' the agent, who acted within the $copeof hi$ a&thorit'. (Art$. 1./, 1.1/ and 1.2."(utierre' 1er!anos v. Orense, -2P#il. 57- (1914).Dnder Sec. !!- of the Code of Civil *roced&re, an agreement for the lea$ing for alonger period than one 'ear, or for the $ale of real propert', or of an intere$t therein, i$invalidif madeb'theagent &nle$$thea&thorit'of theagent beinwritingand$&b$cribed b' the part' $o&ght to be charged.Rio y ,laarrieta v.:utec, 4 *hil 2.6(126".A power of attorne' to conve' real propert' need not be in a p&blic doc&ment, itneedonl'beinwriting, $inceaprivate doc&menti$ competent to create,tran$mit,modif', or e,ting&i$h a right in real propert'. 8imene% v. Raot, !8 *hil !.8 (118".(i) Cor)ora!e Sale o$ ?and@hen the $ale of a piece of land or an' intere$t therein i$ thro&gh an agent, thea&thorit'ofthelatter$hall beinwriting7otherwi$e, the$ale$hall bevoid.City2liteRealty Corporation v. Court of Appeals, !2- SCRA !8- (2///".@hen the corporation1$ primar' p&rpo$e i$ to mar8et, di$trib&te, e,port and importmerchandi$e, the$aleof landi$notwithintheact&al orapparenta&thorit'of thecorporation acting thro&gh it$ oEcer$, m&ch le$$ when acting thro&gh the trea$&rer.;i8ewi$e Article$ 18.4 and 18.8 of Civil Code re)&ire$ that when land i$ $old thro&ghan agent, the agent1$ a&thorit' m&$t be in writing, otherwi$e the $ale i$ void. San 8uanStructural v. CA, 26 SCRA 6!1 (18".!(5.1) A"en!s Canno! 1uy Pro)er!y o$ Princi)al >nless Au!#oriJed (Ar!.1491H-I) #he prohibition again$t agent$ p&rcha$ing propert' in their hand$ for $ale ormanagement i$, however, clearl', not ab$ol&te. @hen $o a&thori3ed b' the principal,the agent i$ not di$)&ali%ed from p&rcha$ing the propert' he hold$ &nder a contract ofagenc' to $ell. ,laguer v. 0urugganan, 8r., -1- SCRA 46/ (2//.".(6) ;o ?ease Real Pro)er!y $or 4ore ;#an &ne 8earArticle 18.8 of the Civil Code e,pre$$e$ that a $pecial power of attorne' i$nece$$ar' to lea$e an' realpropert' to another per$on for more than one 'ear. #helea$eof real propert'for morethanone'ear i$con$iderednot merel'anact ofadmini$trationb&t anact of $trict dominionor of owner$hip. A$pecial power ofattorne' i$ th&$ nece$$ar' for it$ e,ec&tion thro&gh an agent.Shopper3s Para"ise%ealt$ v. %o4ue, 419 SCRA 9, (-++4).@here the lea$e contract involve$ the lea$e of realpropert' for a period of morethan one 'ear, and it wa$ entered into b' the agent of the le$$or and not the le$$orher$elf, in $&ch a ca$e, Article 18.8 of the Civil Code re)&ire$ that the agent be armedwith a $pecial power of attorne' to lea$e the premi$e$. Con$e)&entl', the provi$ion$ ofthe contract of lea$e, incl&ding the grant therein of an option to p&rcha$e to the le$$ee,wo&ld be &nenforceable. ."a. e Chua v. IAC, --9 SCRA 99 (1994).@hen the attorne'CinCfact wa$ empowered b' hi$ principal to ma8e an a$$ignmentof credit$, right$, and intere$t$, in pa'ment of debt$ for profe$$ional $erviced rendered!AF Realty & Dev., Inc. v. Dieselman Freigt Services Co., 3 SCRA +, (2002); Firme v. !u"al Enterprises an# Dev. Corp., 414 SCRA 190 (200).b' law$, and the hiring of law'er$ to ta8e charge of an' action$ nece$$ar' or e,pedientfor the intere$t$ of hi$ principal, and to defend $&it$ bro&ght again$t the principal, $&chpower$ nece$$aril'implie$ thea&thorit'topa'for theprofe$$ional $ervice$ th&$engaged, whichincl&de$a$$ignment of the(&dgment $ec&redfor theprincipal in$ettlement of o&t$tanding profe$$ional fee$.+unicipal Council of (loilo v. #vangelista,-- *hil. 2/ (1!/".(7) ;o Crea!e or Convey Real Ri"#!s over 3%%ovable Pro)er!y5#here i$ no doc&mentar' evidence on record that the re$pondent$Cowner$$peci%call' a&thori3ed re$pondent Hernande3 to $ell their propertie$ to another,incl&ding the petitioner$.Article 18.8 of the :ewCivil Code provide$that a$pecialpower of attorne' i$ nece$$ar' to enter into an' contract b' which the owner$hip of animmovable i$ tran$mitted or ac)&ired either grat&ito&$l' or for a val&ablecon$ideration, or to create or conve' real right$ over immovable propert', or for an'other act of $trict dominion. An' $ale of real propert' b' one p&rporting to be the agentof the regi$tered owner witho&t an' a&thorit' therefore in writing from the $aid owneri$n&ll andvoid. #hedeclaration$of theagent alonearegenerall'in$&Ecient toe$tabli$h the fact or e,tent of her a&thorit'.6 Liton)ua v. -ernan"e', 4-7 SCRA472, 49, (-++4).(2) ;o 4a0e 7i$!s(9) ;o ?oan or 1orro: 4oney(Bce)!'#he agent ma' borrow mone' when it $ &rgent and indi$pen$able for thepre$ervation of the thing$ which are &nder admini$tration. Po:er !o Sell (Bcludes Po:er !o 4or!"a"e and .ice .ersa (Ar!. 1279)A $pecial power of attorne' i$ nece$$ar' for an agent to borrow mone', &nle$$ itbe&rgentandindi$pen$ablefor thepre$ervationof thething$whichare&nderadmini$tration. :asuma v. *eirs of Cecilio S. $e 5illa, 4 SCRA 466 (2//6".40t i$ a generalr&le in the law agenc' that, in order to bind the principalb' amortgage on real propert' e,ec&ted b' an agent, it m&$t &pon it$ face p&rport to bemade, $igned and $ealed in the name of the principal, otherwi$e, it willbind theagent onl'. Go%un v. +ercado -11 SCRA !/- (2//6".A power of attorne', li8e an' other in$tr&ment, i$ to be con$tr&ed according tothenat&ral import of it$ lang&age7 andthea&thorit' whichtheprincipal ha$conferred &pon hi$ agent i$ not to be e,tended b' implication be'ond the nat&raland ordinar' $igni%cance of the term$ in which that a&thorit' ha$ been given. #heattorne' ha$ onl' $&ch a&thorit' a$ the principal ha$ cho$en to confer &pon him,and one dealing with him m&$t a$certain at hi$ own ri$8 whether hi$ act$ will bindtheprincipal. #h&$, wherethepower of attorne'whichve$tedtheagent witha&thorit' 5for me and in m' name to $ign, $ealand e,ec&te, and a$ m' act anddeed, deliver' an' lea$e, an' other deed for conve'ing an' real or per$onalpropert'6 or 5an' other deed for the conve'ing of an' real or per$onal propert',6 itdoe$ not carr' with it or impl' that the agent for and on behalf of hi$ principal ha$thepower toe,ec&teapromi$$or'noteor amortgageto$ec&reit$pa'ment.&ational .an! v. Tan ,ng S%e, -! *hil. 4-1 (12".4$o%un v. &erca#o ,11 SCRA 0, (2006).@here the power of attorne' e,ec&ted b' the principal a&thori3ed the agent 5+'mean$ of a mortgage of m' real propert', to borrow and lend $&m$ in ca$h, at $&chintere$t and for $&ch period$ and condition$ a$ he ma' deem propert' and to collector to pa' the principal and intere$t thereon when d&e,6 while it did not a&thori3e theagent to e,ec&te deed$ of $ale with right of rep&rcha$e over the propert' of theprincipal, nonethele$$ wo&ld validate the main contract of loan entered into with thedeed of $ale with right of rep&rcha$e con$tit&ting merel' an e)&itable mortgage,both contract$ of which were within the $cope of a&thorit' of the agent to enter intointhenameof theprincipal.Rodrigue%v. 0amintuanand$e8esus, !.*hil 8.6(118".A $pecial power of attorne' to mortgage real e$tate i$ limited to $&ch a&thorit'to mortgage and doe$ not bind the grantor per$onall' to other obligation$contracted b' the grantee (in thi$ ca$e the per$onal loan obtained b' the agent inhi$ own name from the *:+" in the ab$ence of an' rati%cation or other $imilar actthat wo&ld e$top the grantor from )&e$tioning or di$owning $&ch other obligation$contractedb'thegrantee.0hilippine&ational .an!v. Sta. +aria, 2SCRA!/!(16". 0notherword$, thepowertomortgagedoe$notincl&dethepowertoobtainloan$, e$peciall' when the grantor$ allege that the' had no bene%t at all from theproceed$ of the loan ta8en b' the agent in hi$ own name from the ban8. 50t i$ not&n&$&al infamil'andb&$ine$$circle$that onewo&ldallowhi$propert'or an&ndivided $hare in real e$tate to be mortgaged b' another a$ $ec&rit', either a$ anaccommodation or for val&able con$ideration, b&t the grant of $&ch a&thorit' doe$not e,tend to a$$&ming per$onal liabilit', m&ch le$$ $olidar' liabilit', for an' loan$ec&red b' the grantee in the ab$ence of e,pre$$ a&thorit' $o given b' the grantor.60hilippine &ational .an! v. Sta. +aria, 2 SCRA !/!, !1/ (16".@here the power of attorne' given to the h&$band b' the wife wa$ limited to agrant of a&thorit' to mortgage a parcel of land titled in the wife1$ name, the wifema' not be heldliableforthepa'ment ofthemortgage debt contracted b'theh&$band, a$thea&thorit'tomortgagedoe$not carr'withit thea&thorit'tocontract obligation. $e 5illa v. Faricante, 1/- *hil. 6.2 (1-".(1+) ;o 1ind !#e Princi)al !o Render So%e Service /i!#ou! Co%)ensa!ion(11) ;o 1ind !#e Princi)al in a Con!rac! o$ Par!ners#i)(1-) ;o &bli"a!e !#e Princi)al as a 7uaran!or or Sure!y@here a power of attorne' i$ e,ec&ted primaril' to enable the attorne'CinCfact, a$managerof amercantileb&$ine$$, tocond&ctit$a4air$forandonbehalf of theprincipal, who i$ the owner of the b&$ine$$, and to thi$ end the attorne'CinCfact i$a&thori3ed to e,ec&te contract$ relating to the principal1$ propert' N5act and deeddeliver', an' lea$e, or an' other deedfor theconve'ingan' real or per$onalpropert'6 and 5act and deed deliver', an' lea$e, relea$e, bargain, $ale, a$$ignment,conve'ance or a$$&rance, or an' other deed for the conve'ing an' real or per$onalpropert'6O , $&ch power will not be interpreted a$ giving the attorne'CinCfact power tobind the principal b' a contract of independent g&arant' or $&ret' &nconnected withthe cond&ct of the mercantile b&$ine$$. Feneral word$ contained in $&ch power willnot be interpreted to e,tend power to the ma8ing of a contract of $&ret'$hip, b&t willbelimited, &nder thewellC8nowr&leof con$tr&ctionindicatedinthee,pre$$ ine9usdemgeneris, a$appl'ingtomatter$$imilar totho$epartic&larl'mentioned.$irector v. Sing 8uco, -! *hil 2/- (12".(1,) ;o Acce)! or Re)udia!e an 3n#eri!ance(14) ;o Ra!i$y or Reco"niJe &bli"a!ions Con!rac!ed 1e$ore !#e A"ency@here it appear$ that a wife gave her h&$band a power of attorne' 5to loan andborrowmone'6andtomortgageherpropert', thatfactdoe$notcarr'withitorimpl' that he ha$ a legal right to $ign her name to a promi$$or' note which wo&ldma8e her liable for the pa'ment of a preCe,i$ting debt of the h&$band or that of hi$%rm, for which $he wa$ not previo&$l' liable, or to mortgage her propert' to $ec&rethe preCe,i$ting debt. .an! of 0.(. v. $e Coster, 4. *hil -4 (12-".@here the term$ of the power granted to the $&b$tit&ted attorne'CinCfact wa$ totheendthattheprincipalC$ellerma'beabletocollectthebalanceofthe$ellingprice of the printing e$tabli$hment $old, $&ch $&b$tit&te agent had no power to enterinto new $ale$ arrangement$ with the b&'er, or to novate the term$ of the original$ale. 5illa v. Garcia .os6ue, 4 *hil 126 (126".e. 5o!ariJed Po:er o$ A!!orneyA notari3ed power of attorne' carrie$ with it the evidentiar' weight conferred &ponit with re$pect to it$ d&e e,ect&ion. 5elso v. Court of Appeals, 26/ SCRA -! (16".@henthedoc&ment &nder $cr&tin'i$a$pecial power of attorne'that i$d&l'notari3ed, the notarial ac8nowledgment i$ prima facie evidence of the fact of it$ d&ee,ec&tion2a b&'er ha$ ever' rea$on to rel' on a per$on1$ a&thorit' to $ell a partic&larpropert' owned b' a corporationon theba$i$ of a notari3ed board re$ol&tion2&ndeniabl' the b&'er i$ an innocent p&rcha$er for val&e in good faith.St. +ary's Farm,(nc. v. 0rima Real 0roperties, (nc., -6/ SCRA ./4 (2//8".333.P&/(R A5 &1?37A;3&5S &F ;9( A7(5; 1. 7eneral &bli"a!ion o$ A"en! /#o Acce)!s !#e A"ency (Ar!. 1224)a. >)on Acce)!ance o$ A))oin!%en!' A"en! 3s 1ound !o Carry on A"ency !o 3!sCo%)le!ion and $or !#e 1eneK! o$ Princi)al&;9(R/3S( =A"en! /ill 1e ?iable $or a%a"es :#ic# ;#rou"# 9is 5on.Per$or%ance !#e Princi)al 4ay SuCer a%a"esb.3n(ven!o$ea!#o$Princi)al'A"en!4us!Finis#1usinessAlready1e"unS#ould elay (n!ail Any an"er(50T S**' Ar!. 1919(,) . ea!# (B!in"uis#esA"ency"0n con$tr&ing the original ver$ion of Article 1884 (Article 1.18 of the old Civil Code", theS&preme Co&rt held that the b&rden i$ on the per$on who $ee8$ to ma8e an agent liable to$how that the lo$$e$ and damage ca&$ed were occa$ioned b' the fa&lt or negligence oftheagent7 mereallegationwitho&t $&b$tantiationi$ not eno&ghtoma8etheagentper$onall' liable. *eredia v. Salina, 1/ *hil 1-. (1/8".@here the holder of an e,cl&$ive and irrevocable power of attorne' to ma8ecollection$, failed to collect the $&m$ d&e to the principal and thereb' allowed the allottedf&nd$ to be e,ha&$ted b' other creditor$, $&ch agent wa$ ad(&dged to have failed to actwiththecareof agoodfather of afamil're)&ired&nder Article188.andbecameper$onall' liable for the damage$ which the principal ma' $&4er thro&gh hi$ nonCperformance. 0&. v. +anila Surety, 14 SCRA ..6 (16-".@heretheprevailing$tat&tor'r&lethenwa$Article26.of theCodeof Commercewhich declared that no agent $hall p&rcha$e for him$elf or for another that which he ha$been ordered to $ell, the Co&rt held that a $ale b' a bro8er to him$elf witho&t the con$entof theprincipal wo&ldbevoidandine4ect&al whether thebro8er ha$beeng&ilt'offra&d&lent cond&ct or not. Con$e)&entl', $&chbro8er i$ not entitledtoreceivean'commi$$ion&nderthecontract, m&chle$$an'reimb&r$ementof e,pen$e$inc&rredinp&r$&ing and clo$ing $&ch $ale$. #he $ame prohibition i$ now contained in Article 141(1"of the Civil Code. .arton v. )eyte Asphalt, 46 *hil !8 (124".@henthe%nancecompan'e,ec&te$amortgagecontractthatcontain$aprovi$ionthat in the event of accident or lo$$, it $hall ma8e a proper claim again$t the in$&rancecompan', wa$ine4ect anagenc'relation, andthat &nder Article1884, the%nancecompan'wa$bo&ndb'it$acceptancetocarr'o&t theagenc', andin$piteof thein$tr&ction$ of the borrower$ to ma8e $&ch claim$ in$tead in$i$ted on having the vehiclerepaired b&t event&all' re$&lting in lo$$ of the in$&rance coverage, the %nance compan'hadbreachedit$ d&t'of diligence, andm&$t a$$&methedamage$ $&4eredb'theborrower$, and con$e)&entl' can no longer collect on the balance of the mortgage loan$ec&red thereb'. 5A -inance v. Court of Appeals, -+1 SCRA 157 (1991).#hewellC$ettledr&lei$thatanagenti$al$ore$pon$ibleforan'negligenceintheperformance of it$ f&nction (Art. 1/" and i$ liable for the damage$ which the principalma'$&4erb'rea$onof it$negligentact. (Art. 1884".5ritishAir,a$sv.CourtofAppeals, -25 SCRA 45+ (1992).-. &bli"a!ion o$ A"en! /#o eclines A"ency (Ar!. 1225)a.3$ 7oods Are For:arded !o 9i%'Bb$erve diligence of a good father of a famil' inc&$tod' and pre$ervation of good$ &ntil new agent appointedb. Co%)are :i!# Ar!. 19-9 R Bbligation of an agent who withdraw$ form an agenc' R hem&$t contin&e to act &ntil principal ta8e$ nece$$ar' $tep$ to meet $it&ation,. 7eneral Rule on (Bercise o$ Po:era. A"en! 4us! Ac! @/i!#in !#e Sco)e o$ 9is Au!#ori!yA (Ar!. 1221)(1) Meaning of 6Perfor!ance 7ithin the Scope of Authorit$8 (Ar!. 19++)(-) 1e Ma$ Perfor! Acts Con"ucive to Acco!plish!ent of Agenc$ PurposeDnder Article 1881 of the Civil Code, the agent m&$t act within the $cope of hi$a&thorit'tobindhi$principal. Solonga$theagent ha$a&thorit', e,pre$$orimplied, the principal i$ bo&nd b' the act$ of the agent on hi$ behalf, whether or notthe third per$on dealing with the agent believe$ that the agent ha$ act&al a&thorit'.#h&$, all $ignatorie$inacontract $ho&ldbeclothedwitha&thorit'tobindthepartie$ the' repre$ent. Sargasso Construction & $evelopment Corporation>0ic! &Shovel, (nc.,>Atlantic #rectors, (nc. 38oint 5enture4 v. 0hilippine 0orts Authority, 62!SCRA 26/ (2/1/".Article 1881 of the Civil Code provide$ that Sthe agent m&$t act within the $copeof hi$a&thorit'.S *&r$&ant tothea&thorit'givenb'theprincipal, theagent i$granted the right Sto a4ect the legal relation$ of hi$ principal b' the performance ofact$ e4ect&ated in accordance with the principal9$ manife$tation of con$ent.SPaci9c %ehouse Corp. v. *I5 Securities, Inc., 6,, SCRA -14 (-+1+).b. Co%)are :i!# Ar!. 1227 R A"en! 4us! Follo: 3ns!ruc!ions o$ !#e Princi)alc.Au!#ori!yo$ A"en!5o!ee%ed(Bceeded3$Per$or%edina4anner4oreAdvan!a"eous !o Princi)al (Ar!. 122-)(1)Co%)are'Agent Shoul" /ot Act If It 7oul" Manifestl$ %esult in Loss ora!age to Principal (Ar!. 1222).Article1882oftheCivil Codeprovide$thatthelimit$ofanagent1$a&thorit'$hall not becon$iderede,ceeded$ho&ldit havebeenperformedinamanneradvantageo&$ to the principal than that $peci%ed b' him. ,laguer v. 0urugganan, 8r.,-1- SCRA 46/ (2//.".#he admi$$ion$ obtained b' the agent from the adver$e part' prior to the formalamendment of the complaint that incl&ded the principal a$ a part' to the $&it, canbeavailedof b'theprincipal 5$inceanagent ma'do$&chact$ a$ ma'becond&cive to the accompli$hment of the p&rpo$e of the agenc', admi$$ion$ $ec&redb' the agent within the $cope of the agenc' o&ght to favor the principal. #hi$ ha$ tobe the r&le, for the act or declaration$ of an agent of the part' within the $cope ofthe agenc' and d&ring it$ e,i$tence are con$idered and treated in t&rn a$declaration$, act$ and repre$entation$ of hi$ principal and ma' be given in evidenceagain$t $&ch part'6 .ay 5ie" *otel v. 7er & Co., 116 SCRA !2. (182".d. (Cec!s o$ 5on.Ra!iKedAc!s one by A"en! in(Bcess o$ 9is Au!#ori!y'>nen$orceable, 5o! Foid (Ar!s. 1,17, 14+,, and 1292)@hen mone' i$ received a$ a depo$it b' an agent, and that mone' i$ t&rned over b'theagent totheprincipal, withnoticethat it i$themone'of thedepo$itor, theprincipal i$ bo&nd to deliver to the depo$itor, even if hi$ agent wa$ not a&thori3ed toreceive $&ch depo$it. N#here ha$, in e4ect, rati%cation of the &na&thori3ed act of theagent, thereb' binding the principalO. Cason v. Ric!ards, - *hil 6! (1/6".@hentheadmini$trator enter$intoacontract that areo&t$ideof the$copeofa&thorit', thecontract wo&ldneverthele$$ not beanab$ol&ten&llit', b&t $impl'voidableN&nenforceableO at thein$tanceof thepartie$ whohadbeenimproperl'repre$ented, and onl' $&ch partie$ can a$$ert the n&llit' of $aid contract$ a$ to them.?ayco v. Serra, 4 *hil 8- (12-".Dnder Article 188 of the :ew Civil Code, the act$ of an agent be'ond the $cope ofhi$ a&thorit' do not bind the principal, &nle$$ the latter rati%e$ the $ame e,pre$$l' orimpliedl'.H&rthermore,when the third per$on. .. 8now$ that the agent wa$actingbe'ond hi$ power or a&thorit', the principal cannot be held liable for the act$ of theagent. 0f the $aid third per$on i$ aware of the limit$ of the a&thorit', he i$ to blame, andi$not entitledtorecover damage$fromtheagent, &nle$$thelatter &ndertoo8to$ec&re the principal1$ rati%cation.Cervantes v. Court of Appeals, ,+4 SCRA -5(1999)7 Sa@c Alcan v. (mperial 5egetale, !-- SCRA -- (2//1".Kven when the agent, in thi$ ca$e the attorne'CatClaw who repre$ented the client inforgingacompromi$eagreement, ha$ e,ceededhi$ a&thorit'inin$ertingpenalt'cla&$e, the $tat&$ of the $aid cla&$e i$ not void b&t merel' voidable,i.e.,capable ofbeing rati%ed. 0ndeed, the client1$ fail&re to )&e$tion the incl&$ion of the penalt' in the(&dicial compromi$e de$pite $everal opport&nitie$ to do $o and with the repre$entationof newco&n$el, wa$tantamo&nt torati%cation. Aence, theclient i$$toppedfroma$$ailing the validit' thereof.5or)a, Sr. v. Sul$ap, Inc., ,99 SCRA 6+1 (-++,).Contract$ entered into in the name of another per$on b' one who ha$ been given noa&thorit' or legal repre$entation or who ha$ acted be'ond hi$ power$ are cla$$i%ed a$&na&thori3edcontract$andare&nenforceable, &nle$$the'arerati%ed.(o'unv.Merca"o 511 SCRA ,+5 (-++6).e. ConseGuences /#en A"en! Ac!s in 9is &:n 5a%e (Ar!. 122,)(1)Principal 1as/o%ightAgainstThir"PersonIfAgentActsin1isO,n/a!eArticle 1.1. of the NoldO Civil Code provide$ that 5@hen an agent act$ in hi$ ownname, the principal $hall have no action again$t the per$on$ with whom the agentha$ contracted, nor the $aid per$on$ again$t the principal.6 Article 246 of the Codeof Commerce provide$ that 5@hen an agent tran$act$ b&$ine$$ in hi$ own name, it$hall not be nece$$ar' for him to $tate who i$ the principal, and he $hall be directl'liable a$ if the b&$ine$$ were for hi$ own acco&nt, to the per$on$ with whom hetran$act$ the $ame, $aid per$on not having an' right of action again$t the principal,nor thelatteragain$t the former,the liabilitie$of theprincipal andtheagent toeachother alwa'$ re$erved.6 0t beinge$tabli$hedb' apreponderanceof theevidence that the agent acted in hi$ own name in $elling the merchandi$e to thedefendant$, and that the defendant$ f&ll' believed that the' were dealing with the$aidagent, witho&t an'8nowledgeof thefact that hewa$ theagent of theplainti4$, and having paid him in f&ll for the merchandi$e p&rcha$ed, the' are notliable to the plainti4$, for $aid merchandi$e. #hi$ i$ tr&e whether the tran$action i$covered b' the provisions of the Civil Code or b' the provi$ion$ of the CommercialCode. )im Tiu v. Rui% & Rementeria, 1- *hil. !6., !./ (11/".@hen an agent act$ in hi$ own name, the principal ha$ no right of action again$ttheper$on$withwhomtheagent ha$contracted, or $&chper$on$again$t theprincipal. 0n $&ch ca$e, the agent i$ directl' liable to the per$on with whom he ha$contracted, a$ if the tran$action$ were hi$ own.Smith .ell v. Sotelo +atti, 44 *hil.8.4 (122".Kven when the agent ha$ a $pecial power of attorne' to mortgage the propert' ofthe principal, when $&ch agent neverthele$$ e,ec&ted the real e$tate mortgage inhi$ownname, theniti$notvalidandbindingontheprincipal p&r$&anttotheprovi$ion$ of Article 188! of the Civil Code.0hilippine Sugar #states $ev. Corp. v.0oi%at, 48 *hil. -!6 (12-"7 Rural .an! of .omon v. Court of Appeals, 212 SCRA 2-(12".Dnder Article188!of theCivil Code, if anagent act$inhi$ownname, theprincipal ha$noright of actionagain$t theper$on$withwhomtheagent ha$contracted7 neither have $&ch per$on$ again$t the principal. 0n $&ch ca$e the agenti$ the one directl' bo&nd in favor of the per$on with whom he ha$ contracted, a$ ifthe tran$action were hi$ own, e,cept when the contract involve$ thing$ belonging tothe principal. Since the principal$ have ca&$ed their agent to enter into a charterpart' in hi$ own name and witho&t di$clo$ing that he act$ for an' principal, then$&ch principal$ have no $tanding to $&e &pon an' i$$&e or ca&$e of action ari$ingfrom $aid charter part'. +arimperio Compania &aviera, S.A. v. Court of Appeals, 1-6SCRA !68 (18.".(-)Agent Is irectl$ 5oun" to Thir" Person as If the Transaction 7ere 1isO,n@hen the agent e,ec&te$ a contract in hi$ per$onal capacit', the fact that he i$de$cribed in the contract a$ the agent of the principal and the propertie$ mortgagedpertain to the principal, ma' not be ta8en to mean that he enter$ into the contractin the name of the principal. A mortgage on real propert' of the principal not madeand $igned in the name of the principali$ not valid a$ to the principal. &ational.an! v. 0alma Gil, -- *hil. 6! (1!1"7 &ational .an! v. Agudelo, -8 *hil 6-- (1!!".Apart'who$ign$ abill of e,changea$ anagent (a$ the*re$ident of thecompan'", b&t failedtodi$clo$ehi$principal become$per$onall'liablefor thedraft$ he accepted, even when he did $o e,pre$$l' a$ an agent. Section 2/ of the:egotiable 0n$tr&ment$ ;aw $a'$ provide$ e,pre$$l' that when an agent $ign$ in anrepre$entative capacit', b&t doe$ not indicate or di$clo$e hi$ principal wo&ld inc&rper$onal liabilit' on the bill of e,change.0hil. .an! of Commerce v. Aruego, 1/2SCRA -!/ (181".(LC(P;3&5 '/#en Con!rac! 3nvolves ;#in"s 1elon"in" !o Princi)alKven when the agent ha$ written a&thorit' to conve' real propert' on behalf ofthe principal, neverthele$$ when the deed of $ale wa$ e,ec&ted b' the agent in herown name witho&t $howing the capacit' in which $he acted, altho&gh the act wa$do&btle$$ irreg&lar, the deed operated to bind the principal who had a&thori3ed the$ale. 8imene% v. Raot, !8 *hil. !.8 (118".@here the plainti4$ appointed the defendant to p&rcha$e a ve$$el and giving himmone' for that p&rpo$e, b&t the agent p&rcha$ed the boat and placed it in hi$ ownname, he ha$ breached hi$ %d&ciar' obligation and i$ obliged to tran$fer the $ameto the plainti4$,or the plainti4$have a right to be $&brogated.Accordingtothee,ception&nder Art. 1.1.of theoldCivil Code(whenthing$belongingtotheprincipal are dealt with"the agent is ound to the principal although he does notassumethecharacter of suchagent andappearsactinginhiso"nname. #hemone'withwhichthela&nchwa$ bo&ght havingcomefromtheplainti4, thee,ception e$tabli$hed in Art. 1.1. i$ applicable to the in$tant ca$e. S'28uco v. Sy28uco, 4/ *hil. 6!4 (12/".@here a coCowner tran$fer$ the entiret' of the mining claim to the b&'er, wheretheb&'er 8newthat itincl&dedtheoneChalf $harepro2indivisoof theother coCowner, thenthetran$actionma'becon$idereda$onewherethedi$po$ingcoCowner acted a$ agent of the other coCowner. Con$e)&entl', &nder Article 188! ofthe Civil Code, $&ch other coCowner ma' $&e the per$on with whom the agent dealtwith in hi$ (agent1$" own name, when the tran$action involve$ thing$ belong to theprincipal. Goldstar v. )im, 2- SCRA -. (168".@hen acommi$$ionagententer$ into a$hipping contract inhi$ own name totran$port the grain$ of :HA on a ve$$el owned b' a $hipping compan', :HA cannotclaim it i$ not liable to the $hipping compan' &nder Article 188! when thing$ belongto the principal are dealt with, the agent i$ bo&nd to the principal altho&gh he doe$not a$$&me the character of $&ch agent and appear$ acting in hi$ own name. 0nother word$, the agent1 apparent repre$entation 'ield$ to the principal1$ tr&erepre$entation and that, in realit' and in e4ect, the contract m&$t be con$idered a$entered into between the principal and the third per$on Corollaril', if the principalcan be obliged to perform hi$ d&tie$ &nder the contract, then it can al$o demand theenforcement of it$ right$ ari$ing from the contract.&ational Food Authority v. (AC,184 SCRA 166 (1/".(,) Provisions Are 7ithout Pre)u"ice to Actions 5et,een Principal an" Agent:See "iscussions #elo, on #reach #$ agent of his "ut$ of lo$alt$I4. S)eciKc &bli"a!ion Rules $or A"en!sa. 5o &bli"a!ion o$ A"en! !o Advance Funds (Ar!. 1226)' It isPrincipal3so#ligationtoa"vancethefun"s, #ut Principal topa$interestona"vances!a"e#$Agentfro!"a$hea"vancesthe!one$(Ar!. 191-).(LC(P; ' (1) 3$ S!i)ula!ed in !#e A"ency A"ree%en!(-) /#ere )rinci)alisinsolven! (SeeAr!.1919H,I' 3nsolvencyeB!in"uis#es an a"ency)b.A"en!S#ouldCarry&u!A"ency inAccordance :i!# Princi)alMs3ns!ruc!ions(Ar!. 1227)(1) 3$ a"en! $ollo:ed ins!ruc!ions, )rinci)al canno! se! u) a"en!Ms i"norance or circu%s!ance :#ic# )rinci)al :as, or ou"#! !o #ave been, a:are o$ (Ar!.1299"*&r$&ant to the in$tr&ction$ of the principal$, the agent p&rcha$ed a piece of land intheir name$ and in the $&m$ given to him b' the principal, and that after the fact ofp&rcha$e the principal$ had rati%ed the tran$action and even received pro%t$ ari$ingfrom the inve$tment in the land, b&t that event&all' a defect in the title to the landaro$e, the $aid principal$ cannot recover their lo$t inve$tment from the agent. 5#here i$nothingintherecordwhichwo&ldindicatethat thedefendant failedtoe,erci$erea$onable care and diligence in the performance of hi$ d&t' a$ $&ch agent, or that he&ndertoo8tog&aranteethevendor1$titletothelandp&rcha$edb'directionoftheplainti4$.6&epomuceno v. *eredia, . *hil -6!, -66 (1/.".@hen an agent in e,ec&ting the order$ and commi$$ion$ of hi$ principal carrie$ o&tthein$tr&ction$heha$receivedfromhi$principal, anddoe$not appear tohavee,ceeded hi$ a&thorit' or to have acted with negligence, deceit or fra&d, he cannot beheld re$pon$ible for the fail&re of hi$ principal to accompli$h the ob(ect of the agenc'.Agents, although they act in representation of the principal, are not guarantors for thesuccess of the usiness enterprise they are as!ed to manage.Guiterre% *ermanos v.,ria *ermanos, !/ *hil. 41 (11-".c. &bli"a!ion 5o! Carry &u! A"ency 3$ (Becu!ion /ould 4ani$es!ly Resul! in ?ossor a%a"e !o Princi)al (Ar!. 1222)@hile it i$ tr&e that an agent who act$ for a revealed principal in the ma8ing of acontract doe$ not become per$onall' bo&nd to the other part' in the $en$e that anaction can ordinaril' be maintained &pon $&ch contract directl' again$t the agent, 'etthat r&le doe$ not control when the agent cannot intercept and appropriate the thingwhichtheprincipal i$bo&ndtodeliver, andthereb'ma8etheperformanceof theprincipal impo$$ible. #he agent in an' event m&$t be precl&ded from doing an' po$itiveact that co&ld prevent performance on the part of hi$ principal, otherwi$e the agentbecome$liableal$oonthecontract.&ational .an!v. /elshFairchild, 44*hil .8/(12!".d. >;8 &F ?&8A?;8 ' &bli"a!ion in a ConNic! o$ 3n!eres! Si!ua!ion (Ar!. 1229) (1) A"en! s#all be liable !o !#e )rinci)al $or da%a"es sus!ained by !#e la!!er:#ere in case o$ conNic! o$ in!eres! si!ua!ion, and a"en! )re$erred #is o:nin!eres!.(-) A"en! )ro#ibi!ed $ro% buyin" )ro)er!y en!rus!ed !o #i% $orad%inis!ra!ion or sale :i!#ou! )rinci)alMs consen! (Ar!. 1491H-I).An agent cannot repre$ent both him$elf and hi$ principal in a tran$action involvingthe $hifting to another per$on of the agent1$ liabilit' for a debt to the principal.Aoiti%v. $e Silva, 4- *hil 88! (124".#hedirector andgeneral manager of the$toc8corporation, whoal$owa$ thema(orit' $toc8holder, and wa$ de$ignated to be the main negotiator for the compan'with the Fovernment for the $ale of it$ large tract of land, having $pecial 8nowledge ofcommercial information that wo&ld increa$e the val&e of the $hare$ in relation to the$ale of the parcel$ of land to the Fovernment, can be treated legall' a$ being an agentof the $toc8holder$ of the compan', with a %d&ciar' obligation to reveal to the other$toc8holder$ $&ch $pecialinformation before proceeding to p&rcha$e from the other$toc8holder$ their $hare$ of $toc8. 0f $&ch director obtain$ the p&rcha$e of the $hare$of a $toc8holder witho&t having di$clo$ed important fact$ or to render the appropriatereport on the e,pected increa$e in val&e of the compan', there wa$ fra&d committedfor which the director $hall be liable for the earning$ earned again$t the $toc8holder onthe $ale of $hare$. Strong v. Guiterre% Repide, 41 *hil. 4. (1/".A con%dentialemplo'ee who, 8nowing that hi$ principalwa$ negotiating with theowner of $ome land for the p&rcha$e thereof, $&rreptitio&$l' $&cceed$ in b&'ing it inthenameof hi$wife, commit$anact of di$lo'alt'andin%delit'tohi$principal,whereb'hebecome$liable, amongother thing$, for thedamage$ca&$ed, whichmeant to tran$fer the propert' bac8 to the principal &nder the term$ and condition$o4ered to the original owner.Sing 8uco and Sing .engco v. Sunyantong and )lorente,4! *hil -8 (122".@here an &ncle who wa$ acting a$ agent or admini$trator of propert' belonging to aniece had proc&red a #orren$ title in hi$ own name to $aid propert', he i$ deemed to bea tr&$tee, and he m&$t $&rrender the propert' to the niece and tran$fer title to her. #herelation$ of an agent to hi$ principal are %d&ciar' and in regard to the propert' formingthe $&b(ectCmatter of the agenc', he i$ e$topped from ac)&iring or a$$erting a titleadver$e to that of the principal. Con$e)&entl', an action in personam will lie again$t anagent to compel him to ret&rn or retran$fer to hi$ principal, or the latter1$ e$tate, thereal propert' committed to hi$ c&$tod' a$ $&ch agent andal$o to e,ec&tethenece$$ar' doc&ment$ of conve'ance to e4ect $&ch retran$fer. Severino v. Severino, 44*hil. !4! (12!".e. Rule 3$ A"en! 3s (%)o:ered !o 1orro: