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G.R. No. 174978, July 31, 201

An agency contract is one where a person agrees to perform services or acts on behalf of another person with their consent. An agency can be express, implied through the principal's actions or inactions, or when the principal fails to repudiate the agency when aware another is acting on their behalf without consent. In general, an agency contract can be oral. However, it must be in writing for real estate transactions involving the sale or conveyance of land or real property interests to be valid, as well as for special powers of attorney regarding immovable properties.

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0% found this document useful (0 votes)
101 views1 page

G.R. No. 174978, July 31, 201

An agency contract is one where a person agrees to perform services or acts on behalf of another person with their consent. An agency can be express, implied through the principal's actions or inactions, or when the principal fails to repudiate the agency when aware another is acting on their behalf without consent. In general, an agency contract can be oral. However, it must be in writing for real estate transactions involving the sale or conveyance of land or real property interests to be valid, as well as for special powers of attorney regarding immovable properties.

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Vance Ceballos
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Agency; definition under the Civil Code; form of contract.

Article 1868 of the Civil Code defines a


contract of agency as a contract whereby a person “binds himself to render some service or to do
something in representation or on behalf of another, with the consent or authority of the latter.” It may
be express, or implied from the acts of the principal, from his silence or lack of action, or his failure to
repudiate the agency, knowing that another person is acting on his behalf without authority.

As a general rule, a contract of agency may be oral.

However, it must be written when the law requires a specific form. Specifically, Article 1874 of the Civil
Code provides that the contract of agency must be written for the validity of the sale of a piece of land
or any interest therein. Otherwise, the sale shall be void. A related provision, Article 1878 of the Civil
Code, states that special powers of attorney are necessary to convey real rights over immovable
properties. Sally Yoshizaki v. Joy Training Center of Aurora, Inc., G.R. No. 174978, July 31, 2013.

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