Irrevocable Agency

What are the exceptions to the rule that agency is revocable at will by the principal?

Agency is not revocable at will in the following cases:

1. If a bilateral contract depends upon it;

2. If it is the means of fulfilling an obligation already contracted;

3. If a partner is appointed manager of a partnership in the contract of partnership and his removal from the management is unjustifiable;

4. If it has been constituted in the common interest of the latter and of the agent, or in the interest of a third person who has accepted the stipulation in his favor. (Art. 1927, 1930, CC)

If an agency is coupled with an interest, does this mean that the principal can never ever revoke it?

No. He can still revoke in extreme situations, e.g.:

1.) The authority can be revoked for a just cause, such as when the attorney-in-fact betrays the interest of the principal. of the power of attorney may not be used to shield the perpetration of acts in bad faith, breach of confidence, or betrayal of trust, by the agent for that would amount to holding that a power coupled with an interest authorizes the agent to commit frauds against the principal. (Coleongco vs. Claparols, G.R. No. L-18616, March 31, 1964)

2.) When the interest is already terminated.

Jurisprudence:

● Powers of attorney falling under Art. 1927 cannot be revoked at the pleasure of the principal, but may be revoked for a just cause, such as when the attorney-in-fact betrays the interest of the principal. (Coleongco vs. Claparols, G.R. No. L-18616, March 31, 1964)

● A mere statement in the power of attorney that it is coupled with an interest is not enough. In what does such interest consist must be stated in the power of attorney. (Del Rosario vs. Abad, G.R. No. L-10881, September 30, 1958)

Labels:

Agency