IV.

THE PRINCIPAL

A. Obligations of the Principal

1. Comply with Obligations--- Article 1910

a. Acts Within the Scope of Authority--- Articles 1881-1882, 1900
b. Ratified Acts--- Articles 1901, 1910

Case:
Filipinas Life v. Pedroso G.R. 159489, February 4, 2008
Manila Memorial v. Linsangan G.R. No. 151319 November 22, 2004
Board of Liquidators v. Heirs of Maximo Kalaw G.R. No. L-18805 August 14, 1967
Francisco v. GSIS G.R. No. L-18287 March 30, 1963
Woodchild v. Roxas G.R. No. 140667 August 12, 2004

a. When estopped--- Article 1911

Case:
Rural Bank of Milaor v. Ocfemia, G.R. No. 137686, February 8, 2000
Cuison v. CA, G.R. No. 88539. October 26, 1993

2. Advance/Reimburse--- Articles 1912, 1918

3. Indemnify---Article 1913

4. Compensate--- Article 1975

B. Liability of Principals

1. Be Solidarily Liable--- Articles 1911, 1915

Case:
De Castro v. CA G.R. No. 115838 July 18, 2002

2. Contract Involves Things Belonging to Principal--- Article 1883

Case:
Syjuco v. Syjuco G.R. No. 13471 January 12, 1920
PNB v. Agudelo G.R. No. 39037 October 30, 1933

V. THE THIRD PARTY DEALING WITH THE AGENT

A. Rights of Third Parties--- Article 1902

B. Obligation of Third Parties
 1. The Keeler Rules
Case:
Keeler Electric v. Rodriguez G.R. No. 19001 November 11, 1922

C. Later Jurisprudence
Case:
BA Finance v. CA G.R. No. 94566, July 3, 1992
NPC v. National Merchandising G.R. Nos. L-33819 & L- 33897 October 23, 1982
Apex Mining v. Southeast Mindanao G.R. Nos. 152613 & 152628, June 23, 2006
Bacaltos Coal Mines v. CA G.R. No. 114091 June 29, 1995

VI. EXTINGUISHING THE AGENCY

Article 1919

A. Revocation

1. In General--- Articles 1920, 1925

Case:
Barreto v. Santa Marina G.R. 8169 December 29, 1913

2. When Not Binding on Third Persons

a. When Notice is Required--- Articles 1921, 1873

Case:
Lustan v. CA, G.R. No. 111924. January 27, 1997

b. Third Person in Good Faith Without Knowledge of Revocation--- Article 1922

3. Appointment of a New Agent--- Article 1923

4. Direct Management by the Principal--- Article 1924

Case:
CMS Logging v. CA G.R. No. 41420 July 10, 1992
Sanchez v. Medicard G.R. No. 141525 September 2, 2005

5. Special Revokes General in Part--- Article 1926

6. When Agency Cannot be Revoked--- Article 1927

Case:
Del Rosario v. Abad G.R. No. L-10881 September 30, 1958
Coleongco v. Claparols G.R. No. L-18616 March 31, 1964
 Lim v. Saban G.R. No. 163720 December 16, 2004
Valenzuela v. CA, G.R. No. 83122. October 19, 1990

B. Withdrawal--- Article 1928

Case:
Valera v. Velasco G.R. No. 28050 March 13, 1928

C. Death/Civil Interdiction/Insanity/Insolvency of the Principal--- Article 1919

Case:
Rallos v. Felix Go Chan G.R. No. L-24332 January 31, 1978

1. Agency Coupled with an Interest

2. Contract between Agent without Knowledge and Third Person in Good Faith--- Article 1931
Rallos v. Felix Go Chan G.R. No. L-24332 January 31, 1978

VII. DISTINGUISHING AGENCY FROM OTHER CONTRACTS

A. In General
1. Determined by Acts
Case:
Doles v. Angeles G.R. No. 149353 G.R. No. 149353 June 26, 2006

2. The Element of Control

Case:
Victorias Milling v. CA G.R. No. 117356 June 19, 2000
Sevilla v. CA G.R. Nos. L-41182-3 April 15, 1988

B. Distinguished from Partnership--- Article 1767

Case:
Sevilla v. CA G.R. Nos. L-41182-3 April 15, 1988
Litonjua v. Litonjua G.R. Nos. 166299-300 December 13, 2005

C. Distinguished from Service Providers

1. Lessor of Services--- Article 1644
Case:
Nielson v. Lepanto G.R. No. L-21601 December 28, 1968

2. Independent Contractor--- Article 1713

Case:
Fressel v. Mariano Uy Chaco G.R. No. 10918 March 4, 1916
Shell v. Firemen’s Insurance G.R. No. L-8169 January 29, 1957
D. Distinguished from Sale--- Article 1458

Case:
Quiroga v. Parsons Hardware G.R. No. 11491 August 23, 1918
American Rubber v. CIR G.R. No. L-25965 June 30, 1975
Ker v. Lingad G.R. No. L-20871 April 30, 1971
Gonzalo Puyat v. Arco Amusement G.R. No. 47538 June 20, 1941
Chua Ngo v. Universal Trading G.R. No. L-2870 September 19, 1950

E. Distinguished from Brokerage

Case:
Hahn v. CA G.R. No. 114074 January 22, 1997.