Obligations of The Principal
Obligations of The Principal
Obligations of The Principal
(1) To comply with all the obligations which the agent (a) It follows that the third party may not set-off or
may have contracted within the scope of his allege any defense against the agent, in an action by
authority (Arts. 1910, 1881, 1897.) and in the name the principal to enforce the contract other than one
of the principal (Arts. 1868, 1883.) which arises out of the particular contract upon
which the action is brought.
(2) To advance to the agent, should the latter so
request, the sums necessary for the execution of the (b) Since notice by a third party to the agent is notice
agency (Art. 1912.) to the principal, the third party is not liable for
damages for failure of the agent to give notice to his
(3) To reimburse the agent for all advances made by principal.
him, provided the agent is free from fault (Ibid.);
the mismanagement of the business of a party by his The principal can nevertheless be deemed to have
agents does not relieve said party from the impliedly communicated his intent to ratify by words
responsibility that he had contracted to third or conduct that had amounted to ratification or even
persons. by silence or inaction where under the circumstances
a reasonable person would have expressed
Where the agent’s acts bind the principal, the latter objections to what the agent’s had done.
may seek recourse against the agent.
For an act of the principal to be considered as an
Illustrative examples at page 535 backwards. implied ratification of an unauthorized act of an
agent, such act must be inconsistent with any other
hypothesis than that he approved and intended to
Liability of principal for tort of agent adopt what had been done in his name.
When principal solidarily liable with the agent. the principal is under obligation to provide the
means with which to execute the agency. In the
absence of stipulation that the agent shall advance
The third person with whom the agent dealt may sue the necessary funds (Art. 1886.), the principal must
either the agent or the principal alone, or both. The advance to the agent upon his request the sums
agent should be exempt from liability if he acted in necessary for the execution of the agency. (Art. 1912,
good faith. par. 1.)
Article 1914
Each principal may be sued by the agent for the
entire amount due and not just for his proportion ate
share.
Nature of agent’s right of lien.
Article 1916
As read in the Civil code.
Article 1917
As read in the Civil code.
Article 1918
As read in the Civil code.