Agency and Partnership Notes

7/25/2019 Agency and Partnership Notes

1/43

PARTNERSHIP & AGENCYGeneral ProvisionsArt. 1767 DefnitionPartners!i" a #ontra#t $!ere% t$o or'ore "ersons %in( t!e'selves to

#ontri%)te 'one* "ro"ert or in()str to a#o''on +)n(* $it! t!e intention o+ (ivi(in,t!e "rofts a'on, t!e'selves* or in or(er toe-er#ise "ro+ession.Pro+ession a ,ro)" o+ 'en ")rs)in, alearne( art as a #o''on #allin, in t!e s"irito+ ")%li# servi#e no less a ")%li# servi#e%e#a)se it 'a in#i(entall %e a 'eans o+liveli!oo(.C!ara#teristi#s o+ Partners!i"1. Consens)al

. No'inate/. 0ilateral. 2nero)s3. Co'')tative6. Prin#i"al7. Pre"arator4 A "artners!i" #ontra#t* in its

essen#e* is a #ontra#t o+ a,en#Ele'ents1. #onsens)al5. t!ere ')st %e a #ontri%)tion o+

'one* "ro"ert or in()str to a#o''on +)n(5

/. t!e s)%e#t ')st %e a la$+)l one5. t!ere ')st %e an intention o+

(ivi(in, t!e "roft a'on, t!e "artners53. t!ere ')st %e a (esire to +or')late

an a#tive )nion a8e#tio so#ietatis956. a ne$ "ersonalit* t!at o+ t!e fr'

')st arise* (istin#t +ro' t!e se"arate"ersonalit o+ ea#! o+ t!e 'e'%ers

Essential :eat)res o+ Partners!i"1. t!ere ')st %e a vali( #ontra#t5. t!e "arties ')st !ave le,al #a"a#it

to enter into t!e #ontra#t5/. t!ere ')st %e a ')t)al #ontri%)tion

o+ 'one* "ro"ert* or in()str to a#o''on +)n(5

. t!e o%e#t ')st %e la$+)l5 an(3. t!e "ri'ar ")r"ose ')st %e to

o%tain "rofts an( to (ivi(e t!e sa'ea'on, t!e "arties

Di8erentiation

Partners!i" P9 vs. Cor"oration C9a. #reationP vol)ntar a,ree'ent o+ "arties

C #reate( % t!e state in t!e +or' o+ as"e#ial #!arter or % a ,eneral ena%lin,la$

%. !o$ lon, it e-istsP no ti'e li'it e-#e"t a,ree'ent %"artiesC not 'ore t!an 3; ears5 'a %e

re()#e(* %)t never e-ten(e(#. lia%ilit to stran,ersP 'a %e lia%le $it! t!eir "rivate"ro"ert %eon( t!eir #ontri%)tion tot!e fr'C lia%le onl +or "a'ent o+ t!eirs)%s#ri%e( #a"ital sto# #an %e a()(,e( insolvent even

i+ t!e in(ivi()al 'e'%ers %e ea#!

fnan#iall solvent/. A "artner !as no ri,!t to 'a Se#s. * 7* 1; an( 11 o+ Art. 1 o+ t!e17 t!e P!ili""ine Constit)tion

4 R)les in #ase o+ Asso#iations no$

la$+)ll or,aniBe( as Partners!i"s1. I+ an asso#iation is not la$+)ll

or,aniBe( as a "artners!i"* it "ossessesno le,al "ersonalit. T!ere+ore* it #annots)e. Ho$ever* t!e "artners* in t!eirin(ivi()al #a"a#it #an.

. 2ne $!o enters into #ontra#t $it! a"artners!i" as s)#! #annot* $!ens)e( later on +or re#over o+ t!e (e%t*alle,e t!e la#< o+ le,al "ersonalit ont!e "art o+ t!e fr'* even i+ it in(ee(!a( no "ersonalit.

Art. 176 Deter'inants +or t!e E-isten#eo+ a Partners!i"

4 P)r"ose> to in(i#ate so'e test to (eter'ine i+$!at 'a see' to %e a "artners!i"reall is one* or it is not

4 Re=)isites +or E-isten#e o+

Partners!i"

1. intention to #reate a "artners!i"5. #o''on +)n( o%taine( +ro'#ontri%)tions5

/. t!ere $as oint interest in t!e "rofts5

T!ere+ore 'ere #o>o$ners!i" or #o>"ossession5 'ere "roft s!arin, orGR2SS ret)rns (o not esta%lis! a"artners!i"

S!arin, o+ net "rofts

> a "ri'a +a#ie evi(en#e t!at one

is a "artner e-#e"t in t!e 3instan#es )n(er Art. 176

Art. 177; a$+)l 2%e#t or P)r"ose1. ')st %e $it!in t!e #o''er#e o+

'an* "ossi%le an( not #ontrar to la$*'orals* ,oo( #)sto's* ")%li# or(er or")%li# "oli#

. i+ a "artners!i" !as several")r"oses* one o+ $!i#! is )nla$+)l* t!e"artners!i" #an still vali(l e-ist so lon,as t!e ille,al ")r"ose #an %e se"arate(+ro' t!e le,al ")r"ose

4 @)(i#ial (e#ree is not ne#essar to

(issolve an )nla$+)l "artners!i".> t!e #ontra#t is voi( an( t!ere+ore

never e-iste( +ro' t!e vie$"oint o+t!e la$

4 Conse=)en#es o+ Fnla$+)l

Partners!i"s1. Art. 3* RPC. T!e "artners +or+eit t!e "ro#ee(s or

"rofts* %)t not t!eir #ontri%)tions*"rovi(e( no #ri'inal "rose#)tion !as%een instit)te(.> i+ t!e #ontri%)tions !ave alrea(

%een 'a(e* t!e #an %e ret)rne(5> i+ t!e #ontri%)tions !ave not et

%een 'a(e* t!e "arties #annot %e'a(e to 'a+or t!e vali(it o+ t!e #ontra#t* as$ell as +or en+or#ea%ilit* no +or' is


5/43

re=)ire(* re,ar(less o+ t!e val)e o+t!e #ontri%)tions

E-#e"tion

> $!enever real "ro"erties or real

ri,!ts in real "ro"erties are #ontri%)te(

re,ar(less o+ t!e val)e a ")%li#instr)'ent is nee(e(. oreover* aninventor o+ t!e i''ova%les is nee(e(.T!is ')st %e si,ne( % t!e "arties an(atta#!e( to t!e ")%li# instr)'ent1. +or e8e#tivit o+ t!e "artners!i"

#ontra#t inso+ar as inno#ent t!ir("ersons are #on#erne(* t!e sa'e ')st%e re,istere( i+ real "ro"erties areinvolve(.

Art. 177 Partners!i" $it! #a"ital o+ P!"/*;;; or 'ore Re,istration $it! t!e SEC4 P)r"ose o+ t!e re,istration $it! t!e

oJ#e o+ t!e SEC> to set a #on(ition +or t!e

iss)an#e o+ li#enses to en,a,e in%)siness or tra(e

E8e#t o+ non>re,istration1. even i+ not re,istere(* t!e

"artners!i" !avin, a #a"ital o+ P!"

/*;;;.;; or 'ore is still a vali( one* an(t!ere+ore !as le,al "ersonalit5

. i+ re,istration is nee(e(* or (esire(*an o+ t!e "artners o+ a vali("artners!i" #an #o'"el t!e ot!ers toe-e#)te t!e nee(e( ")%li# instr)'ent*an( to s)%se=)entl #a)se itsre,istration.

Art. 177/ K!ere real "ro"ert is#ontri%)te(4 Re=)ire'ents $!ere real "ro"ert is

#ontri%)te(1. T!ere ')st %e a ")%li# instr)'ent

re,ar(in, t!e "artners!i"5. T!e inventor o+ t!e realt ')st %e

'a(e* si,ne( % t!e "arties* an(atta#!e( to t!e ")%li# instr)'ent

4 A""li#a%ilit1. a""lies re,ar(less o+ t!e val)e o+ t!e

"ro"ert5. a""lies even i+ onl real ri,!ts over

real "ro"ert are #ontri%)te(5

/. a""lies also i+ #as! or "ersonal"ro"ert is #ontri%)te(Re,istration

trans+er o+ t!e lan( to t!e"artners!i" ')st %e ()l re#or(e( in t!eRe,istration o+ Pro"ert to 'a


6/43

> #ontra#ts entere( into % a"artner in !is o$n na'e 'a %es)e( )"on still % !i' in !is o$nin(ivi()al #a"a#it* not$it!stan(in,t!e a%sen#e o+ "artners!i"

4 Partners!i" nee(s ")%li#it to

"revent +ra)(L(e#eitArt. 1776 Classif#ation o+ Partners!i"a. as to o%e#tLs)%e#t 'atter

1. Fniversal Partners!i"> 'a re+er to all t!e "resent

"ro"ert or to all t!e "roftsa. )niversal o+ all "resent

"ro"ert> t!at $!i#! t!e "artners #ontri%)teall t!e "ro"ert $!i#! a#t)all%elon,s to t!e' to a #o''on

%. )niversal o+ "rofts> #o'"rises all t!at t!e

"artners 'a a#=)ire % t!eirin()str or $or< ()rin, t!ee-isten#e o+ t!e "artners!i"

. Parti#)lar Partners!i"> o%e#t are (eter'inate t!in,s* t!eir

)se or +r)its5 a s"e#if# )n(erta or t!e %enefts !e o%tains +ro't!e ot!er %)siness #an %e availe( o+% t!e ot!er "artners "l)s(a'a,es9

/. GeneralLReal

> one $!o is lia%le %eon( t!ee-tent o+ !is #ontri%)tion

. ana,in,

> one $!o 'ana,es a#tivel t!efr's a8airs

3. i=)i(atin,

> one $!o li=)i(ates or $in(s )"

t!e a8airs o+ t!e fr' a+ter it !as%een (is!onore(6. Partner % esto""elL)asi>"artner


7/43

> one $!o is not reall a "artner%)t $!o 'a %e#o'e lia%le as s)#!inso+ar as t!ir( "ersons are#on#erne(

7. Contin)in,. S)rvivin,

. S)%"artner4 2t!er #lassif#ationsa. ostensi%le "artner

> one $!ose #onne#tion $it! t!efr' is ")%li# an( o"en

%. se#ret

> one $!ose #onne#tion $it! t!efr' is #on#eale( or as a r)le* asi(e +ro' t!e

"ro"erties* onl t!e "rofts o+ t!esai( #ontri%)te( #o''on "ro"ert

4 Note> "rofts +ro' ot!er so)r#es 'a

%e#o'e #o''on* %)t onl i+ t!ere isa sti")lation to s)#! e8e#t.

> Pro"erties s)%se=)entl a#=)ire(% in!eritan#e* le,a# or (onation*#annot %e in#l)(e( in t!esti")lation* %)t t!e +r)its t!ereo+ #an%e in#l)(e( in t!e sti")lation

Art. 171 Pres)'"tion in +avor o+

"artners!i" o+ "rofts> a""li#a%le onl $!en a )niversal

"artners!i" !as %een entere( into4 note> +)t)re "ro"ert #annot %e

in#l)(e( in t!e sti")lation re,ar(in,)niversal "artners!i" o+ all "resent"ro"ert

Reasons1. #ontra#ts re,ar(in, s)##essions

ri,!ts #annot %e 'a(e5. "artners!i" (e'an(s t!at t!e

#ontri%)te( t!in,s %e (eter'inate*


8/43

Art. 17/ Parti#)lar Partners!i"> it !as +or its o%e#t (eter'inate t!in,s*

t!eir )se o+ +r)its* or s"e#if# )n(erta


9/43

Art. 177 A""raisal o+ Goo(s

> 'anner "res#ri%e( % t!e#ontra#t o+ "artners!i" in t!ea%sen#e o+ sti")lation* a""raisals!all %e 'a(e % e-"erts #!osen% t!e "artners an( a##or(in, to

#)rrent "ri#esA. K!en #ontri%)tion #onsist o+

,oo(s> a""raisal o+ val)e is nee(e( to(eter'ine !o$ ')#! !as %een#ontri%)te(

0. Ho$ a""raisal is 'a(e

> as "res#ri%e( % t!e #ontra#t> in (e+a)lt o+ t!e frst* e-"erts#!osen % t!e "artners* an( at#)rrent "ri#es

C. Ne#essit o+ t!e Inventor

A""raisal> "roo+ is nee(e( to (eter'ine!o$ ')#! ,oo(s or 'one !a(%een #ontri%)te(. An inventor is)se+)l

D. Ris< o+ loss

> a+ter ,oo(s !ave %een#ontri%)te(* t!e "artners!i"%ears t!e ris< o+ s)%se=)ent#!an,es in t!eir val)e

Art. 17> 2%li,ations $it! res"e#t to#ontri%)tion o+ 'one

1. to #ontri%)te on t!e (ate ()et!e a'o)nt !e !as )n(erta i+ t!e in()strial "artner en,a,esin %)siness +or !i'sel+* $it!o)t t!ee-"ress "er'ission o+ t!e"artners!i"* t!e #a"italist "artners!ave t!e ri,!t to e-#l)(e !i' +ro't!e fr' or to avail t!e'selves o+t!e %enefts $!i#! !e 'a !ave

o%taine(. In eit!er #ase* t!e#a"italist "artners !ave t!e ri,!t to(a'a,es


10/43

note t!e "er'ission ,iven ')st %ee-"ress5 !en#e* 'ere toleration % t!e"artners!i" $ill not e-e'"t t!ein()strial "artner +ro' lia%ilitDistin#tion %et$een Capitalist Partneran( Industrial Partner

a. as to #ontri%)tionCP #ontri%)tes 'one or "ro"ertIP #ontri%)tes in()str 'ental or"!si#al9

%. as to "ro!i%ition to en,a,e in ot!er

%)sinessCP #annot ,enerall en,a,e in t!esa'e or si'ilar enter"rise as t!at o+!is fr' "ossi%ilit o+ )n+air#o'"etition9IP #annot en,a,e in an %)siness+or !i'sel+ all !is in()str is

s)""ose( to %e #ontri%)te( to t!efr'9

#. as to "rofts

CP s!ares in t!e "rofts a##or(in,to t!e a,ree'ent t!ereon5 i+ none*"ro rata to !is #ontri%)tionIP re#eives a )st an( e=)ita%les!are

(. as to lossesCP sti")lation5 i+ no sti")lation* t!ea,ree'ent as to t!e "rofts5 i+ none*

"ro rata #ontri%)tionIP e-e'"te( as to losses as%et$een t!e "artners;5 %)t is lia%leto stran,ers $it!o)t "re)(i#e torei'%)rse'ent +ro' #a"italist"artners

Art. 1790 - ContributionGeneral Rule: Partner s!all #ontri%)tee=)al s!ares to t!e #a"ital o+ t!e"artners!i"!"eption: sti")lation to t!e #ontrar4 A'o)nt o+ #ontri%)tion

> it is "er'issi%le to #ontri%)te)ne=)al s!ares* i+ t!ere is asti")lation to t!at e8e#t

4 To $!o' a""li#a%le

> %ot! to in()strial as $ell as to#a"ital "artners )n(o)%te(l

Art. 171 2%li,ation o+ Ca"italist Partner

General R)le> a #a"italist "artner is not %o)n(

to #ontri%)te to t!e "artners!i"

'ore t!an $!at !e a,ree( to#ontri%)te %)t in #ase o+ i''inentloss o+ t!e %)siness* an( t!ere is noa,ree'ent to t!e #ontrar* !e is)n(er o%li,ation to #ontri%)te ana((itional s!are to save t!e vent)re.

> i+ !e re+)ses to #ontri%)te* !e

s!all %e o%li,e( to sell !is interest tot!e ot!er "artners4 Re=)isites $!en a #a"italist "artner

is o%li,e( to sell !is interest to t!e ot!er"artners1. i+ t!ere is i''inent loss o+ t!e

"artners!i"5. !e re+)ses to #ontri%)te an

a((itional s!are to t!e #a"ital5 an(/. t!ere is no a,ree'ent to t!e

#ontrar

4 note in()strial "artner ise-e'"te( +or !e is alrea( ,ivin, !isentire in()str

Art. 17 2%li,ations o+ ana,in, Partner$!o #olle#ts (e%t

4 Re#uisites:a. e-isten#e o+ at least t$o

(e%ts5%. %ot! s)'s are (e'an(a%le5

an(#. #olle#tin, "artner is

a)t!oriBe( to 'ana,e an(

a#t)all 'ana,es t!e"artners!i"

4 $!en not a""li#a%le

> i+ t!e "artner #olle#tin, is not a'ana,in, "artner

> !ere* t!ere is no %asis +or t!es)s"i#ion t!at t!e "artner is in 0AD:AITH

Art. 17/ 2%li,ation o+ Partner $!ore#eives s!are o+ "artners!i" #re(it

> to %rin, s)#! to t!e "artners!i"#a"ital in #ase o+ insolven# o+ t!e(e%tor an( ot!er "artners !ave notet #olle#te( t!eir s!are

4 as "ompared to Art. 179$

a. one (e%t onl fr' #re(it9%. a""lies to an "artner

Art. 17 2%li,ation o+ "artner +or(a'a,es to "artners!i"4 K! General Da'a,es #annot %e

o8set % %eneftsa. the partner has the dut% to

se"ure bene&ts 'or the


11/43

partnership( on the other hand)he has the dut% also not to be at'ault

b. sin"e both are duties)"ompensation should not ta*epla"e) the partner being thedebtor in both instan"es

> "ompensation re#uires $persons who are re"ipro"all%debtors and "reditors o' ea"hother

4 iti,ation o+ ia%ilit

> e#uit% ma% mitigate liabilit%i' there are +e!traordinar%e,orts resulting in unusual+pro&ts

4 Nee( +or i=)i(ation

> be'ore a partner sues

another 'or alleged 'raudulentmanagement and resultantdamages) a li#uidation must&rst be e,e"ted to *now thee!tent o' damages

,e"t o' eath o' the negligentPartner

> suit 'or re"o/er% ma% be hadagainst his estate

Art. 173 Ris< o+ oss o+ t!in,s#ontri%)te(

Cases #onte'"late(1. S"e#if# an( (eter'inate t!in,s

$!i#! are not +)n,i%le $!ere onl t!e)se is #ontri%)te(> t!e ris< o+ loss is %orne % t!e

"artner %e#a)se !e re'ains t!eo$ner o+ t!e t!in,s

. S"e#if# an( (eter'inate t!in,s t!eo$ners!i" o+ $!i#! is trans+erre( to t!e"artners!i"> t!e ris< o+ loss is +or t!e a##o)nt

o+ t!e "artners!i"* %ein, t!e o$ner/. :)n,i%le t!in,s or t!in,s $!i#!

#annot %e t!e s!are o+ t!e in()strial"artner in t!e "rofts is not f-e(*as in t!e #ase o+ t!e #a"italist"artners* as it is ver (iJ#)lt toas#ertain t!e val)e o+ t!eservi#es o+ a "erson

4 Distri%)tion o+ osses

a. t!e losses s!all %e (istri%)te(a##or(in, to t!eir a,ree'ent

s)%e#t to Art. 17%. i+ t!ere is no s)#! a,ree'ent*%)t t!e #ontra#t "rovi(es +or t!es!are o+ t!e "artners in t!e


12/43

"rofts* t!e s!are o+ ea#! in t!elosses s!all %e in a##or(an#e$it! t!e "roft>s!arin, ratio* %)tt!e in()strial "artner s!all not%e lia%le +or losses. T!e "rofts orlosses o+ t!e "artners!i" #annot%e (eter'ine( % tas!arin, sti")late( in t!e#ontra#t* t!en losses s!all %e%orn % t!e "artners in"ro"ortion to t!eir #a"ital#ontri%)tions* %)t t!e ")relin()strial "artner s!all not %elia%le +or t!e losses.

4 In()strial Partners Proft

> a )st an( e=)ita%le s!are4 In()strial Partners osses

> $!ile !e 'a %e !el( lia%le %t!ir( "ersons* still !e #an re#over$!atever !e is 'a(e to ,ive t!e'*+ro' t!e ot!er "artners* +or !e ise-e'"te( +ro' losses* $it! or$it!o)t sti")lation to t!is e8e#t

4 Non>a""li#a%ilit to Stran,ers

> Art. 177 a""lies onl to t!e"artners* not $!en lia%ilit in +avor

o+ stran,ers are #on#erne(*"arti#)larl $it! re+eren#e to t!ein()strial "artner

Art. 17 Desi,nation % T!ir( Persons

a. t!ir( "erson> in t!e arti#le* not a "artner5 toavoi( "artialit

b. $!en (esi,nation % t!e /r(

"art 'a %e i'"),ne(> $!en it is 'ani+estline=)ita%le

". $!en (esi,nation #annot %e

i'"),ne( even i+ 'ani+estline=)ita%le> i+ t!e a,,rieve( "artner !asalrea( %e,)n to e-e#)te t!e(e#ision> i+ !e !as not i'"),ne( t!esa'e $it!in / 'ont!s +ro' t!eti'e !e !a( t!e in()strial "artner #annot

$it!(ra$ an la%or or in()str !e!a( alrea( e-erte(.

Art.1;; > Ri,!ts an( 2%li,ations o+ a

ana,in, Partner4 o(es o+ A""ointin, a ana,er

1. a""oint'ent as 'ana,er in t!earti#les o+ "artners!i"

. a""oint'ent as 'ana,er 'a(ein an instr)'ent ot!er t!an t!earti#les o+ "artners!i" or 'a(eorall

4 Distin#tion %et$een A""oint'ent in

Arti#les o+ Partners!i" an( A""oint'ent+ro' ot!er So)r#e ot!er t!an t!e

arti#les o+ "artners!i"9a. as to "o$er

Partners!i" "o$er is irrevo#a%le$it!o)t )st or la$+)l #a)se> to )sti+ re'oval +or )st #a)se

#ontrollin, "artners s!o)l( vote too)st !i'

> $it!o)t )st #a)se t!ere ')st%e )nani'it

ot!er so)r#e > "o$er to a#t 'a %erevo re'oval s!all also %e (one %t!e #ontrollin, interest

%. as to e-tent o+ "o$er

Partners!i"4 ,oo( +ait! !e 'a (o all a#ts o+

a('inistration not o$ners!i"9

(es"ite t!e o""osition o+ !is"artners4 %a( +ait! !e #annot


13/43

ot!er so)r#e as lon, as !e re'ains'ana,er* !e #an "er+or' all a#ts o+a('inistration* %)t o+ #o)rse* i+ t!eot!ers o""ose an( !e "ersists* !e #an%e re'ove(

4 S#o"e o+ t!e Po$ers o+ t!e ana,er

Fnless s"e#if#all restri#te(> !e !as t!e "o$ers o+ a ,enerala,ent5

> as $ell as t!e in#i(ental "o$ersnee(e( to #arr o)t t!e o%e#tives o+t!e "artners!i"

4 R)les as to Co'"ensation

General R)le> in t!e a%sen#e o+ an a,ree'ent

to t!e #ontrar* ea#! 'e'%er o+ t!e"artners!i" ass)'es t!e ()t to,ive !is ti'e* attention* an( s"artners* or $!ere t!e servi#esren(ere( are e-traor(inar.

Art. 1;1 R)le $!ere t!ere are or 'oreana,ers

4 A""li#a%ilit o+ t!e Arti#le1. t!ere are t$o or 'ore

'ana,ers5. t!ere is no s"e#if#ation o+

res"e#tive ()ties5 an(/. t!ere is no sti")lation re=)irin,

)nani'it4 S"e#if# R)les

1. Ea#! 'a se"aratel e-e#)te alla#ts o+ a('inistration5

. e-#e"t i+ an o+ t!e 'ana,erss!o)l( o""ose (ivision o+ t!e

'aorit o+ t!e 'ana,ers s!all"revail9

> i+ t!ere is a tie* t!e "artnerso$nin, t!e #ontrollin, interest"revail5 "rovi(e( t!e are also'ana,ers

4 $!en o""osition 'a %e 'a(e

> %e+ore t!e a#ts "ro()#e le,ale8e#ts inso+ar as t!ir( "ersons are#on#erne(

Art. 1; Fnani'it o+ A#tion4 K!en Fnani'it is Re=)ire(

a. a""lies $!en t!ere ')st %e)nani'it in t!e a#t)ations o+ t!e'ana,ers

%. a%sen#e or in#a"a#it o+ one o+t!e 'ana,ers still re=)ires)nani'ite-#e"t> $!en t!ere is i''inent

(an,er o+ ,rave or irre"ara%lein)r to t!e "artners!i"

4 D)t o+ t!ir( "ersonsRFE


14/43

T!ir( "ersons are not re=)ire( toin=)ire as to $!et!er or not a "artner$it! $!o' !e transa#ts !as t!e #onsento+ all t!e 'ana,ers* +or t!e "res)'"tionis t!at !e a#ts $it! ()e a)t!orit an(#an %in( t!e "artners!i".

APPICA0IITYK!en t!e inno#entl (eal $it! a"artner a""arentl #arrin, on in t!e)s)al $a t!e %)siness* it is i'"erativet!at i+ )nani'it is re=)ire( it isessential t!at t!ere %e )nani'it5ot!er$ise t!e a#t s!all not %e vali(* t!atis t!e "artners!i" is not %o)n(.

Art. 1;/ R)le $!en 'anner o+ 'ana,e'ent !as not %een a,ree( )"on

a. Generall* ea#! "artner is an

a,ent%. Alt!o),! ea#! is an a,ent*

still i+ t!e a#ts are o""ose( %t!e rest* t!e 'aorit s!o)l("revail +or t!e "res)'e( intent is+or all t!e "artners to 'ana,e asin Art. 1;15

#. K!en a "artner a#ts as ana,ent* it is )n(erstoo( t!at !ea#ts in %e!al+ o+ t!e fr'5t!ere+or $!en !e a#ts in !is o$nna'e* !e (oes not %in( t!e"artners!i" ,enerall

(. 2n t!e ot!er !an(* t!ea)t!orit to %in( t!e fr' (oesnot a""l i+ so'e%o( else !a(%een ,iven a)t!orit to 'ana,ein t!e arti#les o+ or,aniBation ort!r) ot!er 'eans.

4 R)le on Alterationsa. i'"ortant alterations

> (eals $it! i''ova%le"ro"ert %e#a)se o+ t!eir ,reateri'"ortan#e t!an "ersonalit.Also* in "ro"er #ases* t!es!o)l( %e ret)rne( to t!e"artners in t!e sa'e #on(itionas $!en t!e $ere (elivere( tot!e "artners!i"

%. alteration

> #onte'"lates )se+)le-"enses

#. #onsent o+ t!e ot!ers 'a %e

e-"ress or i'"lie(Art. 1; Contra#t o+ S)%"artners!i"

S)%"artners!i" "artners!i" +or'e(%et$een a 'e'%er o+ a "artners!i" an( at!ir( "erson +or a (ivision o+ t!e "rofts

#o'in, to !i' +ro' t!e "artners!i"enter"rise > "artners!i" $it!in a "artners!i"an( is (istin#t an( se"arate +ro' t!e 'ainor "rin#i"al "artners!i"4 Ri,!t o+ "erson asso#iate( $it!

"artner s!are> s)%"artners!i" a,ree'ents (onot in an $ise a8e#t t!e#o'"osition* e-isten#e* oro"erations o+ t!e fr'. T!e "artnersare "artners inter se, %)t* in t!ea%sen#e o+ t!e ')t)al assent o+ allt!e "arties* t!e s)%"artner (oes not%e#o'e a 'e'%er o+ t!e"artners!i"* even t!e a,ree'ent is #onte'"lates %)siness (ast!ro),!o)t t!e ear

4 ?al)e o+ Partners!i" 0oo t!e #onstit)te an a('ission o+

t!e +a#ts state( t!erein* ana('ission t!at #an %e intro()#e( onevi(en#e as a,ainst t!e re=)ires ,oo( +ait!> ()t to ,ive on (e'an( tr)e

an( +)ll in+or'ation

Errors in t!e 0oo i+ "artners!i" %oo


15/43

#onsi(ere( entirel #orre#t inso+ar ast!e t!e relation %et$een t!e"artners is essentiall f()#iarinvolvin, tr)st an( #onf(en#e* ea#!"artner %ein, #onsi(ere( in la$* as!e is* t!e #onf(ential a,ent o+ t!e

ot!ers4 D)ties o+ a "artner

1. D)t to a#t +or #o''on %eneft. D)t %e,ins ()rin, t!e +or'ation

o+ "artners!i"/. D)t #ontin)es even a+ter

(issol)tion o+ "artners!i". D)t to a##o)nt +or se#ret an(

si'ilar "rofts3. D)t to a##o)nt +or earnin,s

a##r)in, even a+ter ter'ination o+"artners!i"

6. D)t to 'a#a"italist "artner%e#o'es 'erel a li'ite( "artner in a#o'"etitive enter"rise

4 E8e#t o+ ?iolation

a. t!e violator s!all %rin, t!e"artner s!all o+ t!e "rofts ille,allo%taine(5

%. !e s!all "ersonall %ear all t!elosses

4 Art. 1; Ri,!t o+ Partner to a

:or'al A##o)ntRi,!t to (e'an( a +or'al a##o)nt

a. ,enerall* no +or'ala##o)ntin, is (e'an(a%le)ntil a+ter (issol)tion

%. !o$ever* )n(er Art.1;* +or'al a##o)ntin, 'a%e "ro"erl as #annot %e =)estione( an'ore i+it $as a##e"te( $it!o)t o%e#tion +ort!is $o)l( no$ %e a #ase o+esto""el* )nless +ra)( an( error arealle,e( an( "rove(

4 Sti")lation an( Contin)in, S!are

> vali( an( "ro"er a##o)ntin,')st %e 'a(e

III. Pro"ert Ri,!ts o+ a Partner

Art. 11; Pro"ert Ri,!ts o+ a PartnerPrin#i"al Ri,!ts

a. s"e#if# "artners!i"%. interest in t!e "artners!i"#. ri,!t to "arti#i"ate in t!e

'ana,e'entRelate( Ri,!ts

a. t!e ri,!t to rei'%)rse'ent+or a'o)nts a(van#e( to t!e"artners!i" an( toin(e'nif#ation +or ris


16/43

#. t!e ri,!t to tr)e an( +)llin+or'ation o+ all t!in,s a8e#tin,t!e "artners!i"5

(. t!e ri,!t to +or'al a##o)nt o+"artners!i" a8airs )n(er #ertain#ir#)'stan#es5 an(

e. t!e ri,!t to !ave t!e

"artners!i" (issolve( also )n(er#ertain #on(itionsDistin#tion %et$een Partners!i" Pro"ertan( Partners!i" Ca"itala. as to #!an,es in val)e

PP varia%le5 its val)e 'a var+ro' (a to (a $it! #!an,es in t!e'ar"artner $o)l( !aveo%taine(5

. to avail !i'sel+ o+ t!e )s)alre'e(ies in #ase o+ +ra)( in t!e'ana,e'ent5

/. to as< +or ann)l'ent o+ t!e#ontra#t o+ assi,n'ent i+ t!ere $as+ra)(* error* inti'i(ation* +or#e*)n()e inO)en#e5

. to (e'an( an a##o)ntin,

Art. 11

C!ar,in, Interest o+ a Partner> $!ile a "artners interest in t!e

"artners!i" 'a %e #!ar,e( orlevie( )"on* !is interest in a s"e#if#fr' "ro"ert #annot as a r)le %eatta#!e(.

4 Pre+erential Ri,!ts o+ Partners!i"

Cre(itors> "re+eren#e is ,iven to

"artners!i" #re(itors in t!e"artners!i" assets5

> se"arate or in(ivi()al #re(itors!ave "re+eren#e in se"arate orin(ivi()al "ro"erties

4 Re'e(ies o+ se"arate @)(,'ent

Cre(itor o+ a Partner1. A""li#ation +or t!e #!ar,in,

or(er a+ter se#)rin, )(,'ent on!is #re(it

. Availa%ilit o+ ot!er re'e(ies

4 Re#eivers!i"a. $!en t!e #!ar,in, or(er is

a""lie( +or an( ,rante(* t!e #o)rt


17/43

'a at t!e sa'e ti'e or latera""oint a re#eiver o+ t!e "artnerss!are in t!e "rofts or 'one ()e!i'

%. t!e re#eiver a""ointe( is entitle(to an relie+ ne#essar to #onservet!e "artners!i" assets +or

"artners!i" ")r"oses4 Re(e'"tion o+ t!e Interest C!ar,e(

a. re(e'"tion> 'eans t!ee-tin,)is!'ent o+ t!e #!ar,e oratta#!'ent on t!e "artnersinterest in t!e "rofts5

%. $!en re(e'"tion is 'a(e> an ti'e %e+ore #los)re5> a+ter #los)re* it 'a still %e

%o),!t $it! se"arate "ro"ert or$it! "artners!i" "ro"ert

I?. 2%li,ation o+ t!e Partners $it! re,ar( toT!ir( PersonsArt. 113 :ir' Na'e4 :ir' Na'e

> na'e* title or stle )n(er $!i#!a #o'"an transa#ts %)siness5 a"artners!i" o+ t$o or 'ore "ersons5a #o''er#ial !o)se

4 P)r"ose

> ne#essar to (istin,)is! t!e

"artners!i" $!i#! !as a (istin#t an(se"arate )ri(i#al "ersonalit +ro't!e in(ivi()als #o'"osin, t!e"artners!i" an( +ro' ot!er"artners!i"s an( entities.

4 ia%ilit o+ stran,ers $!o in#l)(e

t!eir na'e> lia%ilit as "artners %e#a)se o+

esto""el* %)t (o not !ave t!e ri,!tsas "artners

Art. 116 ia%ilit +or Contra#t)al2%li,ations o+ Partners4 Partners!i" ia%ilit4 In(ivi()al ia%ilitia%ilit Distin,)is!e( +ro' osses

> an in()strial "artner is e-e'"te(% la$ +or losses %)t not +ro'lia%ilit5

> t!ir( "ersons 'a s)e t!e fr'an( t!e "artners* in#l)(in, t!ein()strial "artners5

> "artners $ill %e "ersonall lia%leonl a+ter t!e assets o+ t!e"artners!i" !ave %een e-!a)ste(

Sti")lations s)#! as t!osee-e'"tin, all t!e in()strial "artnersan( so'e o+ t!e #a"italist "artners*inso+ar as t!ir( "ersons are #on#erne(*$o)l( %e n)ll an( voi(

Art 117 Sti")lations Eli'inatin, ia%ilit

Art. 17 an( 117 re#on#ile(> it is "er'issi%le to sti")late

a'on, t!e' t!at a #a"italist "artner$ill %e e-e'"te( +ro' lia%ilit ine-#ess o+ t!e ori,inal #a"ital#ontri%)te(5 %)t $ill not %ee-e'"te( inso+ar as !is #a"ital is#on#erne(

ia%ilit vs. ossesia%ilit re+ers to res"onsi%ilit to$ar(st!ir( "ersons

osses re+ers to res"onsi%ilit as a'on,"artnersArt. 11 Partner as an A,ent o+Partners!i"

K!en a "artner #an %in( or #annot %in( t!efr'

a. Art. 11 s"ea "artners!i" is a #ontra#t o+

')t)al a,en#> ea#! "artner a#tin, as a

"rin#i"al on !is o$n %e!al+ an( asan a,ent +or !is #o>"artners or t!efr'

K!en #an a "artner %in( t!e "artners!i" Re=)isites

a. $!en !e is e-"ressla)t!oriBe( or i'"lie(la)t!oriBe(5 an(

%. $!en !e a#ts in %e!al+ an(in t!e na'e o+ t!e "artners!i"

K!en $ill a#t not %in( t!e "artners!i"

A. $!en* alt!o),! +or a""arentl#arrin, on in t!e )s)al $a t!e%)siness o+ t!e "artners!i"* stillt!e "artner !as in +a#t N2AFTH2RITY* an( t!e t!ir( "art


18/43

N2TE T!e 7


19/43

4 Instan#es $!en t!e fr' an( ot!er"artners are not lia%lea. i+ t!e $ron,+)l a#t or o'ission

$as not (one $it!in t!e s#o"e o+ t!e"artners!i" %)siness an( +or its%eneft5

%. i+ t!e a#t or o'ission $as not

$ron,+)l5#. i+ t!e a#t or o'ission* alt!o),!$ron,+)l* (i( not 'a


20/43

4 ia%ilit o+ in#o'in, "artner +or

"artners!i" o%li,ations1. li'ite( to !is s!are in

"artners!i" "ro"ert +or e-istin,o%li,ations* )nless t!ere issti")lation to t!e #ontrar5

. e-ten(s to !is se"arate "ro"ert+or s)%se=)ent o%li,ations4 ia%ilit o+ an 2)t,oin, Partner

> $!ere a "artner ,ives noti#e o+!is retire'ent or $it!(ra$al +ro't!e "artners!i"* !e is +ree( +ro' anlia%ilit on #ontra#ts entere( intot!erea+ter* %)t !is lia%ilit one-istin, in#o'"lete #ontra#t#ontin)es.

4 t!e r)le o+ !ol(in, t!e ne$

"artner lia%le +or "revio)so%li,ations o+ t!e fr' is not !ars!on t!e sai( ne$ "artner. A+ter all t!ein#o'in, "artner "arta a+ter all* t!e "artners!i" is a

)ri(i#al "erson $it! $!o' t!e#re(itors !ave #ontra#te(5 'oreovert!e assets o+ t!e "artners!i" ')stfrst %e e-e#)te(

Reason $! in()strial #re(itors 'a stillatta#! t!e "artners s!are> a+ter all* re'ain(er %elon,s to

t!e "artnerSale % a "artner o+ !is s!are to a t!ir("art> i+ a "artner sells !is s!are to a

t!ir( "art* %)t t!e fr' itsel+ stillre'ains solvent* #re(itors o+ t!e"artners!i" #annot assail t!e vali(ito+ t!e sale % alle,in, t!at it is'a(e in +ra)( o+ t!e'* sin#e t!e!ave not reall %een "re)(i#e(

I?. Dissol)tion an( Kin(in, F"Art. 1 & 1 Defnition o+ Dissol)tion*

Kin(in, )" an( Ter'ination5 E8e#ts o+Dissol)tionDissol)tion

> t!e #!an,e in t!e relation o+ t!e"artners #a)se( % an "artner#easin, to %e asso#iate( in t!e#arrin, on o+ t!e %)siness

> t!at "oint o+ ti'e $!en t!e"artners #ease to #arr on t!e%)siness to,et!er

E8e#ts o+ Dissol)tiona. "artners!i" is not ter'inate(5%. "artners!i" #ontin)es +or a

li'ite( ")r"ose5 an(#. transa#tion o+ ne$ %)siness is

"ro!i%ite(Kin(in, F"

> t!e "ro#ess o+ settlin, %)sinessa8airs a+ter (issol)tion

Ter'ination

> t!e "oint in ti'e a+ter all t!e"artners!i" a8airs !ave %een $o)n()"

E8e#t on 2%li,ations

a. a "artner #annot eva(e"revio)s o%li,ations entere(into % t!e "artners!i"

%. a%sol)tion saves t!e +or'er"artners +ro' ne$ o%li,ation to$!i#! t!e !ave not e-"resslor i'"lie(l #onsente(* )nlesst!e sa'e %e essential +or

$in(in, )"Art. 1/; Ca)ses o+ Dissol)tion1. as to frst #a)se

> "artners!i" a,ree'ent !as not%een violate(

instan#es

v ter'ination o+ t!e (efniteter' or s"e#if# )n(erta


21/43

t!e a,ree'ent %et$een t!e"artners

/. In #ontravention o+ t!e

a,ree'ent %et$een t!e "artners*$!ere t!e #ir#)'stan#es (o not"er'it a (issol)tion )n(er an ot!er

"rovision o+ t!is arti#le* % t!ee-"ress $ill o+ an "artner at anti'e5

. $!en a s"e#if# t!in,* $!i#! a"artner !a( "ro'ise( to #ontri%)teto t!e "artners!i"* "eris!es %e+ore(eliver

3. % t!e (eat! o+ an "artner56. % t!e insolven# o+ an "artner

or o+ t!e "artners!i"57. % t!e #ivil inter(i#tion o+ an

"artner5 an(. % (e#ree o+ #o)rt

note "artners in t!eir #ontra#t #annotli'it t!e #a)se +or (issol)tion

Art. 1/1 @)(i#ial (eter'ination as to(issol)tion

4 t!is arti#le s"ea 'a !a""en $!en t!e "artner

enters t!e ,overn'ent servi#e

$!i#! $o)l( "ro!i%it !i' +ro'"arti#i"atin, in t!e fr'* or $!en !e$ill sta a%roa( +or a lon, ti'e

A""oint'ent o+ a re#eiver In a s)it +or (issol)tion* t!e #o)rt'a a""oint a re#eiver at its o$n(is#retion %)t a re#eiver is not nee(e($!en "ra#ti#all all t!e fr' assets arein t!e !an(s o+ a s!eri8 )n(er a $rit o+re"levin* or $!en t!e e-isten#e o+ a"artners!i" $it! t!e "lainti8 is (enie(*"arti#)larl i+ t!e %)siness o+ t!e fr' is

%ein, #on()#te( s)##ess+)ll4 Ti'e o+ Dissol)tion> a fr' %e#o'es a (issolve(

"artners!i" at t!e ti'e t!e )(i#ial(e#ree %e#o'e s a fnal )(,'ent

Art. 1/ E8e#ts o+ Dissol)tionGeneral Rile Art. 1/E-#e"tion Art. 1// an( 1/E8e#ts o+ (issol)tion

> $!en a "artners!i" is (issolve(*#ertain e8e#ts are inevita%le* inso+aras t!e relations o+ t!e fr' to$ar(t!ir( "ersons are #on#erne(* an(inso+ar as t!e "artners t!e'selvesare a8e#te( in t!eir relations $it!one anot!er

E8e#t o+ "revio)s #ontra#t

> $!en a fr' is (issolve(* it (oesnot 'ean t!at t!e #ontra#ts an(o%li,ations entere( into* $!et!ert!e fr' is t!e #re(itor or (e%tor*a)to'ati#all #ease5

> t!e fr' is still allo$e( to #olle#t"revio)sl a#=)ire( #re(its* it is also%o)n( to "a all t!e (e%ts5

> a (issolve( "artners!i" still !ast!e "ersonalit +or $in(in, )" itsa8airs

Cre(itors $!o !ave not %een "re)(i#e(

> i+ t!e o%li,ations an( ri,!ts o+ a(issolve( fr' are trans+erre( toanot!er fr'* t!e #re(itors 'a not

!ol( t!e +or'er lia%le even i+ sai(#re(itors !ave not %een "re)(i#e(*as lon, as t!e ne$ fr' #an in(ee(ta


22/43

%e erroneo)s to let t!e ol( fr' "a*i+ t!e ne$ fr' #an reall "a.

Art. 1// Min(s o+ Ca)ses o+ Dissol)tion

a. A#t>Insolven#>Deat!%. 2t!er t!in,s li % t!e "artners $!o !ave not$ron,+)ll (issolve( t!e"artners!i"5

> or % t!e le,al re"resentative o+t!e last s)rvivin, "artner "rovi(e(

t!e last s)rvivor $as not insolvent@)(i#ial $in(in, )"


23/43

> )n(er t!e #ontrol an( (ire#tiono+ t!e #o)rt* )"on "ro"er #a)se t!atis s!o$n to t!e #o)rt5

> "etition +or )(i#ial $in(in, )"#an %e (one % an "artner* !isle,al re"resentative or assi,nee

R)le i+ s)rvivor is not t!e 'ana,er> !e is not re=)ire( to serve asli=)i(ator t!ereo+5

> !e is not re=)ire( as li=)i(ator$it!o)t #o'"ensation5 an(

> i+ !e li=)i(ates t!e a8airs )"on"ro'ise o+ a #ertain #o'"ensation% t!e 'ana,in, "artners* !e isnat)rall entitle( to re#eive#o'"ensation

Profts

> "rofts are s)""ose( to a##r)e

onl ()rin, t!e e-isten#e o+ t!e"artners!i" %e+ore (issol)tion5

> "rofts t!at $ill a#t)all enter t!efr' a+ter (issol)tion as a#onse=)en#e o+ transa#tions alrea('a(e %e+ore (issol)tion are in#l)(e(%e#a)se t!e are #onsi(ere( as"rofts e-istin, at t!e ti'e o+(issol)tion5 an(

> an ot!er in#o'e earne( a+tert!e ti'e s!o)l( not %e (ist)r%e( as"rofts* %)t 'erel as a((itionalin#o'e to t!e #a"ital

Persons a)t!oriBe( to $in( )"

a. t!e "artners (esi,nate( %t!e a,ree'ent5

%. in t!e a%sen#e o+ s)#!a,ree'ent* all t!e "artners $!o!ave not $ron,+)ll (issolve(t!e "artners!i"5 an(

#. t!e le,al re"resentativee-e#)tor or a('inistrator9 o+t!e last s)rvivin, "artner $!enall t!e "artners are alrea((ea(9 not insolvent.

Art. 1/7 > Ri,!t o+ Partner to A""li#ation o+Partners!i" Pro"ert on Dissol)tion

4 ri,!ts $!ere (issol)tion not in#ontravention o+ a,ree'ent "ar. 19

4 ri,!ts $!ere (issol)tion is in#ontravention o+ a,ree'ent "ar.9

T$o as"e#ts o+ (issol)tionDissol)tion 'a %e #a)se(

a. alt!o),! t!e "artners!i"

#ontra#t is not violate(5%. %e#a)se t!e "artners!i"#ontra#t is violate(

Inno#ent Partners> !ave %etter ri,!ts t!an ,)ilt

"artners5> 'a #ontin)e t!e %)siness ne$

"artners!i"95> ri,!ts o+ t!e ,)ilt "artners are

sa+e,)ar(e( % a

a. %on( a""rove( % t!e#o)rt%. "a'ent o+ interest at t!e

ti'e o+ (issol)tion 'in)s(a'a,es

Ri,!t to ,et #as!

> in #ase o+ non>#ontin)an#e o+ t!e%)siness* t!e interest o+ t!e "artners!o)l(* i+ !e (esires* %e ,iven inCASH

note a ,)ilt "artner* in as#ertainin,

t!e val)e o+ !is interest is not entitle(to a "ro"ortionate s!are o+ t!e val)e o+t!e G22D KI

Partner $ron,+)ll e-#l)(e(

> !e s!o)l( %e #onsi(ere( aninno#ent "art5

> t!e ot!er "artner ')st a##o)ntnot onl +or $!at is ()e to !i' att!e (ate o+ t!e (issol)tion %)t also+or (a'a,es or +or !is s!are o+ t!e"rofts realiBe( +ro' t!e a""re#iationo+ t!e "artners!i" %)siness an(

,oo( $ill "rovi(e( t!e e-#l)(e("artner !a( not s)%stantiall %ro


24/43

#. ri,!t o+ in(e'nif#ationArt. 1/ i=)i(ation an( Distri%)tion o+Assets o+ Dissolve( Partners!i"i=)i(ation > %e+ore li=)i(ation is 'a(e* no

a#tion +or a##o)ntin, o+ a "artners s!are int!e "roft or +or a ret)rn o+ !is #a"ital assets#an "ro"erl %e 'a(e* sin#e it is essentialto frst "a o8 t!e #re(itorsAssets o+ Partners!i"

> "artners!i" "ro"ert> #ontri%)tions o+ t!e "artners*

$!i#! are 'a(e to "a o8 t!e"artners!i" lia%ilities

2r(er o+ Pa'ent o+ :ir's ia%ilities1. #re(itors $!o

are stran,ers9ot!er$ise t!e'a %e "re)(i#e(5

. "artners $!oare alrea(#re(itors95

/. (istri%)te"rofts

note

> i+ t!e "artners!i" assets areins)J#ient t!e ot!er "artners ')st#ontri%)te 'ore 'one or "ro"ert

> s)#! #ontri%)tors 'a %een+or#e( %> an assi,nee +or t!e %eneft

o+ t!e #re(itor* or an "ersona""ointe( % t!e #o)rt5

> an "artner or !is le,iti'atere"resentative

Pre+eren#e $it! res"e#t to t!e assets It (e"en(s

> re,ar(in, "artners!i" "ro"ert*"artners!i" #re(itors !ave"re+eren#e

> re,ar(in, in(ivi()al "ro"ert*#re(itors are "re)(i#e(

R)les i+ "artners are insolvent

a. ,ive to t!ein(ivi()alLse"arate #re(itors5

%. ,ive to t!e "artners!i"#re(itor5

#. t!en t!ose o$in, to t!e ot!er"artners % $a o+ #ontri%)tion

Art. 1; Dissol)tion o+ Partners!i" %

C!an,e in e'%ers!i"a. a ne$ "artner is a('itte(5%. $!en a "artner (ies* retires*

e-"elle( or $it!(ra$s5

#. $!en t!e ot!er "artnersassi,n t!eir ri,!ts to t!e solere'ainin, "artner5

(. $!en all t!e "artners assi,nt!eir ri,!ts in "artners!i""ro"ert to t!ir( "ersons

Ri,!ts o+ #re(itors o+ (issolve( "artners!i"$!i#! is #ontin)e(1. e=)al ri,!ts o+

(issolve( an( ne$"artners!i" #re(itors

. lia%ilit o+ "ersons#ontin)in, %)siness see"ar. an( "ar. 1* no.9

/. "rior ri,!t o+ (issolve("artners!i" as a,ainst")r#!aser

> $it!o)t a fnalsettle'ent $it! #re(itors

o+ t!e "artners!i"K! are t!e ol( #re(itors #onsi(ere(#re(itors o+ t!e ne$ fr'

> t!e reason +or t!e la$ in 'a "erson in "artners!i" #ontin)in,

t!e %)siness

Pres#ri"tion


25/43

> %e,ins to r)n onl )"on t!e(issol)tion o+ t!e "artners!i" $!ent!e fnal a##o)ntin, is (one

i'ite( Partners!i"Art. 1/ i'ite( Partners!i"

C!ara#teristi#sa. +or'e( % #o'"lian#e $it!

t!e stat)tor re=)ire'ents5%. one or 'ore ,eneral "artners

#ontrol t!e %)siness an( are"ersonall lia%le to #re(itors

#. one or 'ore li'ite( "artners#ontri%)te to t!e #a"ital an(s!are in t!e "rofts %)t (o not"arti#i"ate in t!e 'ana,e'ento+ t!e %)siness an( are not"ersonall lia%le +or "artners!i"

o%li,ations %eon( t!e a'o)nto+ t!eir #a"ital #ontri%)tions5

(. t!e 5li'ite( "artners 'a as t!e la$ sas t!at t!e

#ontri%)tion o+ ea#! li'ite( "artner')st %e state(. T!ere+ore* i+ t!ea,,re,ate s)' ,iven % t$o or 'oreli'ite( "artners is ,iven* t!e la$ !asnot %een #o'"lie( $it!.

E8e#t o+ o'ittin, t!e ter' li'ite( in t!efr' na'e

> t!e la$ re=)ires t!e fr' na'e to!ave t!e $or( li'ite(. I+ s)#! isviolate(* t!e na'e #annot %e#onsi(ere( t!e fr' na'e o+ t!eli'ite( "artners!i".

Art. 13 i'ite( Partners Contri%)tionR)le

a. a li'ite( "artner is notallo$e( to #ontri%)te in()str orservi#es alone

%. an in()strial "artner #an%e#o'e a ,eneral "artner in ali'ite( "artners!i"

Art. 16 E8e#t $!ere s)rna'e o+ li'ite("artner a""ears in "artners!i" na'e

> t!e li'ite( "artner violatin, t!is

arti#le is lia%le* as a ,eneral r)le* to"artners!i" #re(itors $it!o)t*!o$ever* t!e ri,!ts o+ a ,eneral"artner. 2+ #o)rse* s)#! li'ite("artner s!all not %e lia%le as a,eneral "artner $it! res"e#t to t!ir("ersons $it! a#t)al a li'ite( "artner is lia%le as a,eneral "artner +or t!e fr'so%li,ations i+ !e ta


26/43

A#ts #onstit)tin, inter+eren#e in t!e'ana,e'ent

a. sele#tion o+ $!o $ill %e'ana,in, "artners5

%. s)"ervision over as)"erinten(ent o+ t!e %)sinesso+ t!e fr'

note "arti#i"ation in t!e #ontrol o+ t!e%)siness 'a no "o$er to %in( t!e li'ite("artners %eon( t!e lattersinvest'ent

> no "o$er to a#t +or t!e fr'%eon( t!e ")r"ose an( s#o"e o+t!e "artners!i"

> no a)t!orit to #!an,e t!enat)re o+ t!e %)siness $it!o)tt!e #onsent o+ t!e li'ite("artners

4 Fn(er t!e a#ts en)'erate(

)n(er Art. 13;9* t!e ,eneral"artners even i+ )nani'o)s9 ')ststill ,et t!e $ritten #onsent o+ all t!eli'ite( "artners.

4 I+ a ,eneral "artner in a li'ite("artners!i" ,oes a%roa(* !is#a"a#it to %in( t!e fr' is ,overne(% t!e la$ o+ t!e "la#e $!ere t!eli'ite( "artners!i" $as +or'e(.

Art. 131 Ri,!ts o+ a li'ite( "artnerRi,!ts* in ,eneral* o+ a li'ite( "artner

> as 'e'%ers o+ t!e fr'* t!eli'ite( "artner* in or(er to "rote#t!is interest in t!e fr'* !as t!e sa'e

ri,!t to #o'"el t!e "artners toa##o)nt as a ,eneral "artner !as

Ri,!ts o+ a li'ite( "artner

a. a li'ite( "artner ne#essaril!as lesser ri,!ts t!an a ,eneral"artner as en)'erate( in Art.

1319%. !o$ever* !e !as also t!eri,!t to !ave (issol)tion an($in(in, )" % (e#ree o+ #o)rt5!e #annot* !o$ever* %in( t!efr' % a #ontra#t

Art. 13 Stat)s o+ "artner $!ere t!ere i++ail)re to #reate li'ite( "artners!i"

4 a #ontri%)tor $!o erroneo)sl%elieves !e !as %e#o'e a li'ite("artner an( t!ere)"on e-er#ises t!e

ri,!ts o+ a li'ite( "artner* !e s!o)l(not %e #onsi(ere( as a ,eneral"artner

4 !o$ever* !e #an %e !el( lia%le asa ,eneral "artner

> )nless in as#ertainin, t!e'ista re,ar(in, !is #ontri%)tion* !e

$o)l( %e #onsi(ere( a li'ite("artner* $it! t!e ri,!ts o+ a li'ite("artner inso+ar as t!e ot!er "artnersare #on#erne(

Art. 13 oan an( ot!er %)sinesstransa#tions $it! li'ite( "artnersRi,!t o+ a li'ite( "artner to len( 'onean( transa#t ot!er %)siness $it! t!e fr'

a. t!e "arties are al$as ,iven"re+erential ri,!ts inso+ar as t!e

fr's assets are #on#erne(%. $!ile a li'ite( "artner* in t!e#ase o+ #lai's re+erre( to in t!earti#le* is "ro!i%ite( to re#eive or


27/43

!ol( as #ollateral se#)rit an"artners!i" "ro"ert* still !e is not"ro!i%ite( to ")r#!ase "artners!i"assets $!i#! are )se( to satis+"artners!i" o%li,ations to$ar(st!ir( "arties

Allo$a%le transa#tionsa. ,rantin, loans to t!e"artners!i"5

%. transa#tin, ot!er %)siness $it!it5 an(

#. re#eivin, a "ro rata s!are o+ t!e"artners!i" assets $it! ,eneral#re(itors i+ !e is not also a ,eneral"artner

Pro!i%ite( transa#tions

a. re#eivin, or !ol(in, #ollateralse#)rit an "artners!i" "ro"ert

%. re#eivin, an "a'ent*#onvean#e* or release +ro' lia%iliti+ it $ill "re)(i#e t!e ri,!t o+ t!ir("ersons

Art. 133 Pre+erre( li'ite( "artnersPre+eren#e to so'e li'ite( "artners

> s)#! "re+eren#e ')st %e state(in t!e #ertif#ate

Pre+eren#e involves> ret)rn o+ #ontri%)tion

> #o'"ensation> ot!er 'atters

Art. 136 Co'"ensation o+ li'ite("artners

:or t!is arti#le to a""l*"artners!i" assets ')st %e in e-#ess o+"artners!i" lia%ilities to t!ir( "ersons* notlia%ilities to "artnersArt. 137 Re=)isites +or ret)rn o+#ontri%)tion o+ li'ite( "artner

a. all lia%ilities o+ t!e "artners!i"

!ave %een "ai( or i+ t!e !ave notet %een "ai(* t!e assets o+ t!e"artners!i" are s)J#ient to "as)#! lia%ilities

%. t!e #onsent o+ all t!e 'e'%ers!as %een o%taine( e-#e"t $!en t!eret)rn 'a %e ri,!t+)ll (e'an(e(5an(

#. t!e #ertif#ate is #an#elle( or soa'en(e( as to set +ort! t!e

$it!(ra$al or re()#tion o+ t!e#ontri%)tion

Par. 1 (eals $it! t!e #on(itions t!at ')ste-ist %e+ore #ontri%)tion % a li'ite("artner #an %e ret)rne( to !i'Par. (eals $it! t!e ti'e $!en s)#!#ontri%)tions #an %e ret)rne(* "rovi(e(t!at t!e #on(itions are #o'"lie( $it!

4 even i+ a li'ite( "artner !as#ontri%)te( "ro"ert* !e !as t!eri,!t to (e'an( an( re#eive #as! inret)rn

4 i+ "ar. 1 is violate(* "revio)s#re(itors #an s)e* %)t t!e ')stalle,e an( "rove t!e non>e-isten#eo+ t!e #on(itions

ia%ilit o+ a "artner $!o !as $it!(ra$n

> a li'ite( "artner $!o $it!(ra$sri,!t+)ll !is #ontri%)tion* an( t!e

#ertif#ate is a'en(e( "ro"erl*$o)l( still %e lia%le to "revio)s#re(itors i+ later on t!e fr'%e#o'es insolvent. His #ontri%)tionis to %e treate( as a tr)st +)n( +ort!e (is#!ar,e o+ lia%ilities

Art. 13 ia%ilities o+ a li'ite( "artner

> lia%ilities 'a %e $aive("rovi(e( t!e +ollo$in, #on#)r> all t!e ot!er li'ite( "artners ')sta,ree

> inno#ent t!ir( "art #re(itors ')stnot %e "re)(i#e(

ia%ilities o+ a li'ite( "artner

a. to t!e "artners!i"> t!eir lia%ilit is to t!e "artners!i"

not to t!e #re(itors o+ t!e"artners!i"

%. to "artners!i" #re(itors an(ot!er "artners

> see arts. 1/* 16>*13*an( 1* "ar.

#. to se"arate #re(itors> see art 16

K!en ret)rn o+ #ontri%)tion a 'atter o+ri,!t

a. on t!e (issol)tion o+ t!e"artners!i"5 or

%. )"on t!e arrival o+ t!e (ates"e#ife( in t!e #ertif#ate +or t!eret)rn

#. a+ter t!e e-"iration o+ t!e 6'ont!s noti#e in $ritin, ,iven %!i' to t!e ot!er "artners i+ no ti'e

is f-e( in t!e #ertif#ate +or t!eret)rn o+ t!e #ontri%)tion or +or t!e(issol)tion o+ t!e "artners!i"


28/43

Art. 13 C!an,e in t!e relation o+ li'ite("artnersE8e#t o+ #!an,e in t!e relations!i" o+li'ite( "artners

> (oes not ne#essaril (issolve t!e"artners!i". No li'ite( "ar6tner*

!o$ever* #an $it!(ra$ !is#ontri%)tion )ntil all lia%ilities to#re(itors are "ai(

S)%stit)te( i'ite( Partner > a "erson a('itte( to all t!eri,!ts o+ a li'ite( "artner $!o !as (ie( or!as assi,ne( !is interest in t!e "artners!i"e-#e"t onl t!ose o+ $!i#! !e $as i,norantat t!e ti'e !e %e#a'e a li'ite( "artneran( $!i#! #o)l( not %e as#ertaine( +ro't!e #ertif#ate > see arts. 17 an( 13 +or t!e

lia%ilities o+ an assi,nor

Ri,!ts o+ assi,nees o+ li'ite( "artner > t!e assi,nee is onl entitle( tore#eive t!e s!are o+ t!e "rofts or ot!er#o'"ensation % $a o+ in#o'e or t!eret)rn o+ t!e #ontri%)tion to $!i#! t!eassi,nor $o)l( ot!er$ise %e entitle(Art. 16; Ca)ses +or t!e (issol)tion o+li'ite( "artners!i"

> ne$ "rovision

> so)r#e Se#. ; Fni+or' i'ite(Partners!i" A#t

Art. 161 Deat! o+ li'ite( "artner

> ne$ "rovision> so)r#e Se#. 1 Fni+or' i'ite(

Partners!i" A#tArt. 16 C!ar,in, t!e interest o+ ali'ite( "artner

> ne$ "rovision> so)r#e Se#. Fni+or' i'ite(

Partners!i" A#tArt. 16/ Pa'ent o+ lia%ilities o+ li'ite("artner

> ne$ "rovision> so)r#e Se#. / Fni+or' i'ite(

Partners!i" A#tArt. 16 K!en Certif#ate is #an#elle( ora'en(e(

> ne$ "rovision> so)r#e Se#. Fni+or' i'ite(

Partners!i" A#t

Can#ellation

> $!en t!e "artners!i" is(issolve(* or $!en all t!e li'ite("artners #ease to %e li'ite("artners* t!e li'ite( "artners s!all%e #an#elle(* not 'erel a'en(e(.

T!e $ritin, to #an#el a #ertif#ates!all %e si,ne( % all t!e 'e'%ers

Art. 163 Re=)isites +or a'en(in, or#an#elin, t!e #ertif#ate

> ne$ "rovision> so)r#e Se#. 3 Fni+or' i'ite(

Partners!i" A#tArt. 166 K!en #ontri%)tors ot!er t!an,eneral "artners9 s!o)l( %e 'a(e "arties to"ro#ee(in,s

Art. 167 Transitional "rovision on i'ite(Partners!i"

> ne$ "rovision> so)r#e Se#. /; Fni+or' i'ite(

Partners!i" A#t


29/43

Nat)re* :or' an( Min(s o+ A,en#Art. 16Defnition o+ a,en#

> a relations!i" $!i#! i'"lies a"o$er in an a,ent to #ontra#t $it! at!ir( "erson on %e!al+ o+ t!e"rin#i"al.

> T!e "o$er to e8e#t t!e"rin#i"als #ontra#t)al relations $it!

t!ir( "ersons t!at (i8erentiates t!ea,ent +ro' t!e e'"loee* t!eservant* an( t!e in(e"en(ent#ontra#tor

I'"ortan#e

> ena%les a 'an to in#rease t!eran,e o+ !is in(ivi()al an( #or"oratea#tivit % ena%lin, !i' to %e#onstr)#tivel "resent in 'an"la#es an( to #arr on (ivers

a#tivities at t!e sa'e ti'eC!ara#teristi#sa. "rin#i"al%. no'inate#. %ilateral(. "re"aratore. #o'')tative+. ,enerall onero)s,. f()#iar

Nat)re a #ontra#t0asis re"resentation #onstit)tes t!e

%asis o+ a,en#P)r"ose to e-ten( t!e "ersonalit o+t!e "rin#i"al t!ro),! t!e +a#ilit o+ t!ea,ent

Parties

a. "rin#i"al> !e $!o' t!e a,ent re"resentsan( +ro' $!o' !e (erivesa)t!orit5 !e is t!e one "ri'aril#on#erne( in t!e #ontra#t

%. a,ent> !e $!o a#ts or stan(s +or

anot!er> )s)all* !e is ,iven +)ll or

"artial (is#retion* %)tso'eti'es !e a#ts )n(er as"e#if# #o''an(

Ele'ents o+ A,en#

a. t!ere is #onsent* e-"ress ori'"lie(* o+ t!e "arties toesta%lis! t!e relations!i"5

%. t!e o%e#t is t!e e-e#)tion o+a )ri(i#al a#t in relation to t!ir("ersons5

#. t!e a,ent a#ts as are"resentative an( not +or!i'sel+5 an(

(. t!e a,ent a#ts $it!in t!es#o"e o+ !is a)t!orit

Ca"a#it o+ t!e Prin#i"al

a. #a"a#itate( to ,ive #onsent5%. nat)ral or a )ri(i#al "erson

Ca"a#it o+ an A,ent4 t!e sa'e as t!e la$ on #ontra#ts


30/43

> a%le to %in( !i'sel+%)t onl inso+ar as !iso%li,ation to !is "rin#i"alis #on#erne(5

> inso+ar as t!ir("ersons are #on#erne(*!o$ever* it is eno),! t!at

!is "rin#i"al %e t!e one#a"a#itate(* +or ,enerallan a,ent ass)'es no"ersonal lia%ilit

Distin#tions

A,en# A9 vs. Partners!i" P9

An a,ent a#ts not +or !i'sel+* %)t+or !is "rin#i"al5 a "artner a#ts +or !i'sel+*+or !is fr'* an( +or !is "artners. It 'a %e

even sai( t!at "artners!i" is a %ran#! o+t!e la$ on a,en#.A,en# vs. oan

An a,ent 'a %e ,iven +)n(s % t!e

"rin#i"al to a(van#e t!e latters %)siness*$!ile t!e %orro$er is ,iven 'one +or")r"oses o+ !is o$n* an( !e ')st ,enerallret)rn it* $!et!er or not !is o$n %)siness iss)##ess+)l. A lot !o$ever (e"en(s on t!eintent o+ t!e"arties.

A,en# vs. G)ar(ians!i"

1. T!e a,ent re"resents a #a"a#itate("erson $!ile t!e ,)ar(ian re"resents anin#a"a#itate( "erson. T!e a,ent is a""ointe( % t!e "rin#i"alan( #an %e re'ove( % t!e latter $!ile t!e,)ar(ian is a""ointe( % t!e #o)rt an(stan(s in locos parentis/. T!e a,ent is s)%e#t to t!e (ire#tions o+t!e "rin#i"al $!ile t!e ,)ar(ian is nots)%e#t to t!e (ire#tions o+ t!e $ar(* %)t')st o+ #o)rse a#t +or t!e %eneft o+ t!e$ar(.. T!e a,ent #an 'a


31/43

%. t!e a,ent o+ t!e a,ent 'a%e #ontrolle( % t!e "rin#i"al$!ile t!e e'"loees o+ t!e#ontra#tor are not t!e e'"loeeso+ t!e e'"loer o+ t!e #ontra#tor

#. a,ent #an %in( t!e "rin#i"al$!ile or(inaril* t!e in(e"en(ent

#ontra#tor #annot %in( t!ee'"loer % tort(. t!e ne,li,en#e o+ t!e a,ent is

i'")ta%le to t!e "rin#i"al $!ilet!e ne,li,en#e i+ t!ein(e"en(ent #ontra#tor is,enerall not i'")ta%le to !ise'"loer

A,en# vs. Ne,otior)' Gestio

a. in a,en# t!ere is a #ontra#t#a)se( % a 'eetin, o+ t!e

'in(s* e-"ressl or i'"lie(l$!ile in ne,otior)' ,estio* t!ereis onl a =)asi>#ontra#t* t!ere!avin, %een no 'eetin, o+'in(s. Hen#e* t!e re"resentation$as not a,ree( )"on

%. a,ent is #ontrolle( % t!e"rin#i"al $!ile t!e oJ#io)s'ana,er +ollo$s !is )(,'entan( t!e "res)'e( $ill o+ t!eo$ner

#. in a,en# t!e le,al relation is#reate( % t!e "arties $!ile in

ne,otior)' ,estio t!e le,alrelations!i" is #reate( % la$o##asione( o+ #o)rse % t!ea#ts o+ t!e 'ana,er9

A,en# vs. Tr)st

a. an a,ent )s)all !ol(s notitle at all $!ile t!e tr)stee 'a!ol( le,al title to t!e "ro"ert

%. )s)all* a,ent a#ts in t!ena'e o+ t!e "rin#i"al $!ile t!etr)stee 'a a#t in !is o$n na'e

#. )s)all* a,en# 'a %eter'inate( or revo oral> $ritten

#. as to #!ara#ter4 ,rat)ito)s

> one $!ere t!e a,ent re#eives no#o'"ensation +or !is servi#es

4 #o'"ensate( or onero)s> one $!ere t!e a,ent re#eives#o'"ensation +or !is servi#es

(. as to e-tent o+ %)siness #overe(4 ,eneral one $!i#! #o'"rises all

t!e %)siness o+ t!e "rin#i"al4 s"e#ial one $!i#! #o'"rises

one or 'ore s"e#if# transa#tion

e. as to a)t!orit #on+erre(4 #o)#!e( in ,eneral ter's one

$!i#! is #reate( in ,eneral ter'san( is (ee'e( to #o'"rise onl a#tso+ a('inistration

4 #o)#!e( in s"e#if# ter's onea)t!oriBin, onl t!e "er+or'an#e o+a s"e#if# a#t or a#ts

+. as to its nat)re an( e8e#ts4 ostensi%le or re"resentative one

$!ere t!e a,ents a#ts in t!e na'ean( re"resentation o+ t!e "rin#i"al

4 si'"le or #o''ission one$!ere t!e a,ent a#ts in !is o$n

na'e %)t +or t!e a##o)nt o+ t!e"rin#i"al:or' o+ a,en#


32/43

In ,eneral* t!ere are no +or'alre=)ire'ents ,overnin, t!e a""oint'ent o+an a,ent. T!e a,ents a)t!orit 'a %e oralor $ritten. It 'a %e in ")%li# or "rivate$ritin,.

A,en# 'a even %e i'"lie(

+ro' $or(s an( #on()#t o+ t!e "arties an(t!e #ir#)'stan#es o+ t!e "arti#)lar #ase.0)t a,en# #annot %e in+erre( +ro' 'ererelations!i" or +a'il ties.A""oint'ent o+ a,ent

It is not essential t!at an a,ent%e a""ointe( (ire#tl % t!e "rin#i"al* %)tt!e a""oint'ent 'a %e 'a(e t!ro),!anot!er* as % re+errin, an a""li#ant toanot!er an( re"resentin, t!at !e !asa)t!orit to a#t* or t!e relation 'a arise

o)t o+ an a,ent to e'"lo t!e a,ent o+ t!efrst "art.

An a,ent a""ointe( % t!e(ire#tors o+ a #or"oration to a#t +or t!e#or"oration is an a,ent o+ t!e #or"orationan( not o+ t!e (ire#tors.Pres)'"tion o+ a,en#General R)le > a,en# is ,enerall not"res)'e(. T!e relations!i" %et$een t!e

"rin#i"al an( t!e a,ent ')st e-ist as a +a#t.E-#e"tion > a "res)'"tion o+ a,en# 'aarise* !o$ever* in t!ose +e$ #ases $!ere ana,en# 'a arise % o"eration o+ la$ or to"revent )n)st enri#!'entArt. 17; :or' o+ a##e"tan#e % a,ent:or's

a. e-"ress%. i'"lie(

Art. 171 A##e"tan#e %et$een "ersons"resentR)les A##e"tan#e #annot %e i'"lie(+ro' t!e silen#e o+ t!e a,ent e-#e"t

a. trans'ission o+ t!e Po$er o+Attorne % t!e "rin#i"al to t!ea,ent* $!o re#eives it $it!o)to%e#tion5 an(

%. "rin#i"al entr)sts to t!e

a,ent a letter or tele,ra' aPo$er o+ Attorne* an( !e (i(not re"l to t!e sa'e

Po$er o+ Attorne> an instr)'ent in

$ritin, % $!i#! one"erson* as "rin#i"al*a""oints anot!er as !isa,ent an( #on+ers )"on!i' t!e a)t!orit to

"er+or' #ertain s"e#ife(a#ts or t!e $ritten a)t!orititsel+ is t!e "o$er o+ t!eattorne an( t!is is#learl in(i#ate( % t!e+a#t it !as also %een#alle( a letter o+ attorne.

Pri'ar P)r"ose > not to (efne t!e

a)t!orit o+ t!e a,ent as %et$een!i'sel+ an( !is "rin#i"al %)t toevi(en#e t!e a)t!orit o+ t!e a,entto t!e t!ir( "arties $it!in $!o' t!ea,ent (eals5 an( t!e "erson !ol(in,t!e "o$er o+ attorne is s!o$n an((esi,nate( as an attorne in +a#t*t!)s (istin,)is!in, s)#! "erson +ro'an attorne at la$

Constr)#tion o+ "o$ers o+ attorneGeneral R)le T!e instr)'ent $ill %e !el( to

,rant onl t!ose "o$ers $!i#! ares"e#ife(* an( t!e a,ent 'a neit!er ,o%eon( nor (eviate +ro' t!e "o$er o+attorne.E-#e"tion to t!e R)le T!e ,eneral r)les!all not %e a""lie( to t!e e-tent o+(estroin, t!e ver ")r"ose o+ t!e "o$er.Art. 17 A##e"tan#e i+ t!e "arties area%sentR)les A##e"tan#e o+ t!e a,en# % t!ea,ent is not i'"lie( +ro' !is silen#e orina#tion. Sin#e t!e a,ent is not %o)n( toa##e"t t!e a,en#* !e #an si'"l i,noret!e o8er.

Ho$ever* t!ere is i'"lie(a##e"tan#e i+

1. T!ere is trans'issiono+ t!e Po$er o+ Attorne% t!e "rin#i"al to t!ea,ent* $!o re#eives it

$it!o)t o%e#tion.. T!e Prin#i"al entr)ststo t!e a,ent a letter ortele,ra' a Po$er o+


33/43

Attorne* an( !e (i( notre"l to t!e letter ortele,ra'.

Art. 17/ Kas o+ Givin, noti#e o+ A,en#

T!ere are t$o $as o+ ,ivin,

noti#e o+ a,en# $it! (i8erent e8e#ts1. I+ % s"e#ialin+or'ation % letter9*t!e "erson a""ointe( asa,ent is #onsi(ere( s)#!$it! res"e#t to t!e "ersonto $!o' it $as ,iven.

. I+ % ")%li#a(vertise'ent* t!e a,entis #onsi(ere( as s)#! $it!re,ar( to an "erson.

In eit!er #ase* t!e a,en# is (ee'e(to e-ist $!et!er t!ere is a#t)all an a,en#

or not.anner o+ Revo#ation o+ A,en#

T!e "o$er o+ attorne')st %e revo


34/43

As to t!e e-tent o+ t!e "o$er

#on+erre(* a,en# 'a %e #o)#!e( in,eneral ter's or #o)#!e( in s"e#if# ter's. An a,en# #o)#!e( in ,eneralter's 'a %e a ,eneral a,en# or a s"e#iala,en#. It in#l)(es onl a#ts o+

a('inistration an( an e-"ress "o$er isne#essar to "er+or' an a#t o+ stri#to$ners!i"eanin, o+ A#ts o+ A('inistration K!at are a#ts o+ a('inistration$ill al$as %e a =)estion o+ +a#t* rat!ert!an o+ la$* %e#a)se t!ere #an %e no (o)%tt!at so)n( 'ana,e'ent $ill so'eti'esre=)ire t!e "er+or'an#e o+ an a#t o+o$ners!i". 0)t* )nless t!e #ontrara""ears* t!e a)t!orit o+ an a,ent is"res)'e( to in#l)(e all t!e ne#essar an(

)s)al 'eans to #arr o)t t!e a,en# intoe8e#t.Constr)#tion o+ #ontra#ts o+ a,en#

a. Contra#ts o+ a,en# as $ell as,eneral "o$ers o+ attorne ')st %einter"rete( in a##or(an#e $it! t!elan,)a,e )se( % t!e "arties

%. T!e real intention o+ t!e "artiesis "ri'aril to %e (eter'ine( +ro't!e lan,)a,e )se( an( ,at!ere(+ro' t!e $!ole instr)'ent.

#. In #ase o+ (o)%t* resort ')st %e

!a( to t!e sit)ation s)rro)n(in,s*an( relations o+ t!e "arties.

(. T!e intention o+ t!e "arties ')st%e s)staine( rat!er t!at %e(e+eate(.

e. T!e a#ts o+ t!e "arties in#arrin, o)t t!e #ontra#t $ill %e"res)'e( to !ave %een (one in,oo( +ait! an( in #on+or'it $it!an( not #ontrar to t!e intent o+ t!e#ontra#t.

Art. 17 K!en S"e#ial Po$ers o+ Attorneare ne#essar13 instan#es

1. To 'a S"e#ial Po$er to Sell e-#l)(est!e Po$er to ort,a,e

4 S"e#ial Po$er to ort,a,e (oesnot in#l)(e t!e Po$er to Sell.

Art. 1; S#o"e o+ s"e#ial "o$er to#o'"ro'ise

An a,ent a)t!oriBe( to#o'"ro'ise #an (o ant!in, $!i#! t!e"rin#i"al !i'sel+ #an (o to e8e#t a

settle'ent* )nless t!ere is a #ontrar le,al"rovision. A s"e#ial "o$er to s)%'it toar%itration (oes not a)t!oriBe t!e "o$er to#o'"ro'ise.Art. 11 an( Art. 1Defnition o+ t!e A)t!orit o+ an A,ent A)t!orit is t!e "o$er o+ t!ea,ent to a8e#t t!e le,al relations o+ t!e"rin#i"al % a#ts (one in a##or(an#e $it!t!e "rin#i"als 'ani+estation o+ #onsent to

!i'.A)t!orit vs. Po$er

a. as to e-isten#e >t!e +or'er 'a %e #onsi(ere(t!e so)r#e or #a)se* $!ile t!e latter* t!ee8e#t

note t!e "o$er o+ an a,ent isalso t!e li'itation )"on !is a%ilit to %in(t!e "rin#i"al* +or it is $ell settle( t!at ana,ent %in(s !is "rin#i"al onl as to a#ts$it!in !is a#t)al or a""arent a)t!orit

%. as to s#o"e,eneral r)le t!e e-tent o+ t!e a,entsa)t!orit (e"en(s )"on t!e ")r"ose o+t!e a,en# > as %et$een t!e a,ent an( t!e"rin#i"al* an a#t is $it!in t!e a)t!orito+ t!e a,ent i+ it is not a violation o+ !is()t to t!e "rin#i"al* an( it is $it!in t!e"o$er i+ !e !as t!e le,al a%ilit to %in(t!e "Q"rin#i"al to a t!ir( "arsonalt!o),! t!e a#t #onstit)tes a violation

o+ !is ()t to t!e "rin#i"al> so +ar as t!ir( "ersons are

#on#erne(* no (istin#tion e-ists. An a#t


35/43

$it!in t!e "o$er o+ t!e a,ent is (ee'e($it!in t!e s#o"e o+ !is a)t!orit even i+t!e a,ent !as* in +a#t* e-#ee(e( t!eli'its o+ !is a)t!orit or !e !as noa)t!orit $!atever to (o so

Min(s o+ a)t!orit

1. a#t)al. e-"ress/. i'"lie(. a""arent or ostensi%le3. ,eneral6. s"e#ial7. a)t!orit % ne#essit

or % o"eration o+ la$> $!en it is (e'an(e( %virt)e o+ t!e e-isten#e o+ ane'er,en#5 it ter'inates$!en t!e a,en# !as "asse(

Re=)isites $!en1. "rin#i"al is %o)n( % a#t o+ a,ent

a. a,ent ')st a#t $it!in t!es#o"e o+ !is a)t!orit5 an(

%. t!e a,ent ')st a#t in %e!al+o+ t!e "rin#i"al

. not %o)n( % a#t o+ a,ent

a. t!e latter a#ts $it!o)t or%eon( t!e s#o"e o+ !isa)t!orit in t!e +or'ers na'e5an(

%. t!e latter a#ts $it!in t!e

s#o"e o+ !is a)t!orit %)t in !iso$n na'e* e-#e"t $!en t!etransa#tion involves t!in,s%elon,in, to t!e "rin#i"al

/. "rin#i"al %o)n( % a#ts o+ a,ent %eon(!is "o$er

a. $!ere !is "rin#i"als9 a#ts!ave #ontri%)te( to (e#eive t!ir("erson in ,oo( +ait!5

%. $!ere t!e li'itations )"ont!e "o$er #reate( % !i' #o)l(not !ave %een i+ at t!e ti'e o+ t!etransa#tion #ontra#te( %t!e a,ent* t!e ot!er "artt!ereto !as T!is is t!e )s)al t"eo+ a,en#

%. Partiall Dis#lose( Prin#i"al> i+ t!e ot!er "art i+ t!e "art !as nonoti#e o+ t!e +a#t t!at t!ea,ent is a#tin, as s)#!+or a "rin#i"al

4 A,en# $it! an )n(is#lose(

"rin#i"al> t!e arti#le s"ea (oes not a""l i+ t!ea,ent $as )na)t!oriBe(or !e a#ts in e-#ess o+ !isa)t!orit

4 K!en a)t!oriBe( a,ent %)s in

!is o$n na'e %)t reall in %e!al+ o+"rin#i"al> seller !as t!e o"tion to loo< toeit!er +or "a'ent )nless

a. !e tr)ste( t!e a,ente-#l)sivel5

%. % )sa,e an()n(erstan(in, o+ %)siness*t!e a,ent onl is !el(5

#. )nless t!e s"e#ial#ir#)'stan#es o+ t!e #asereveal t!at t!e a,ent $asinten(e( to %e %o)n( an(t!e seller


36/43

4 Re,ar(in, t!in,s %elon,in, to t!e"rin#i"al> t!is 'eans t!at t!e a,entsa""arent re"resentation iel(s tot!e "rin#i"als tr)e re"resentation5an( t!at* in realit an( in e8e#t* t!e#ontra#t ')st %e #onsi(ere( as

entere( into %et$een t!e "rin#i"alan( t!e t!ir( "erson an(#onse=)entl* i+ t!e o%li,ation%elon,s to t!e +or'er* to !i' alone')st also %elon, t!e ri,!ts arisin,+ro' t!e #ontra#t2%li,ations o+ t!e A,ent

Art. 1 2%li,ations o+ a,ent to"rin#i"al

General o%li,ations

a. oalt to !is tr)st a,entsfrst ()t

%. 2%e(ien#e to "rin#i"alsinstr)#tion

#. E-er#ise o+ reasona%le #areD)t o+ a,ent to #arr o)t t!e a,en# > an a,ent $!o (oes not #arr o)tt!e a,en# is lia%le +or (a'a,es5 i+ !e+)lflls !is ()t* !e is not "ersonall lia%le)nless !e so %in(s !i'sel+E8e#t o+ "rin#i"als (eat!

> e-tin,)is!es t!e a,en#* %)ta,ent is o%li,e( to fnis! t!e %)sinessalrea( %e,)n i+ (ela s!o)l( entail (an,erA,ent $!o sells to !i'sel+ >an a,ent $!o !as %eena)t!oriBe( to sell so'e 'er#!an(ise is notallo$e( to %in( t!e "rin#i"al % sellin, to!i'sel+ (ire#tl or in(ire#tl.Art. 13 2%li,ation o+ "erson $!o(e#lines a,en#D)t o+ 2$ner

a. % a""ointin, an a,ent%. % ta t!e "rin#i"al ')st a(van#e tot!e a,ent* s!o)l( t!e latter so re=)est* t!es)'s ne#essar +or t!e e-e#)tion o+ t!ea,en# > t!e #ontra#t on a,en#*!o$ever* 'a sti")late t!at t!e a,ent s!alla(van#e t!e ne#essar +)n(s

> in s)#! #ase* t!ea,ent is %o)n( to +)rnis! s)#! +)n(s e-#e"t$!en t!e "rin#i"al is insolventArt. 17 A,ents ()t to +ollo$instr)#tionsInstr)#tion o+ "rin#i"al > "rivate (ire#tions $!i#! t!e"rin#i"al 'a ,ive t!e a,ent in re,ar( tot!e 'anner o+ "er+or'in, !is ()ties ass)#! a,ent

Instr)#tions vs. A)t!orita. a)t!orit* t!e s)' total o+

t!e "o$ers #o''itte( or"er'itte( to t!e a,ent % t!e"rin#i"al* 'a %e li'ite( ins#o"e an( s)#! li'itations aret!e'selves a "art o+ t!ea)t!orit* %)t instr)#tions (ire#tt!e 'anner o+ transa#tin, t!ea)t!oriBe( %)siness an(#onte'"lates onl a "rivate r)leo+ ,)i(an#e to t!e a,ent an( arein(e"en(ent an( (istin#t in

#!ara#ter5%. a)t!orit relates to t!e

s)%e#t $it! $!i#! t!e a,ent ise'"o$ere( to (eal or t!e


37/43


38/43

> voi(* a,ainst ")%li# "oli#%e#a)se it $o)l( %e #on()#ive to +ra)(D)t to (eliver +)n(s > i+ not!in, in t!e #ontra#t o+a,en# "rovi(es ot!er$ise* 11 i'"oseson t!e a,ent t!e o%li,ation to (eliver to !is

"rin#i"al all +)n(s #olle#te( on !is a##o)ntK!en o%li,ation to a##o)nt not a""li#a%le

a. i+ t!e a,ent or %roa,ent

A "erson to $!o' t!e a,ent(ele,ates* as !is a,ent* t!e "er+or'an#e o+an a#t +or t!e "rin#i"al $!i#! t!e a,ent !as%een e'"o$ere( to "er+or' t!ro),! !isre"resentative.

Po$er o+ a,ent to a""oint s)%>a,ent Fnless "ro!i%ite( % t!e"rin#i"al* t!e a,ent 'a a""oint a s)%>a,ent. T!e a,ent* in t!is sit)ation is a"rin#i"al $it! res"e#t to t!e s)%stit)te.

E8e#ts o+ S)%stit)tion.

a. K!en t!e s)%stit)te is a""ointe(% t!e a,ent a,ainst t!e e-"ress"ro!i%ition o+ t!e "rin#i"al* t!ea,ent e-#ee(s t!e li'its o+ !isa)t!orit. All a#ts o+ t!e s)%stit)te ins)#! #ase is ?2ID.

%. I+ t!e a,ent is ,iven t!e "o$er to

a""oint a s)%stit)te an( t!e"rin#i"al (i( not (esi,nate an"erson to %e a""ointe(* t!es)%stit)tion !as t!e e8e#t o+

releasin, t!e a,ent +ro' !isres"onsi%ilit )nless t!e "ersona""ointe( is notorio)slin#o'"etent or insolvent.

#. I+ t!e a,ent a""oints a s)%stit)te$!en !e $as not ,iven t!e "o$er toa""oint one* t!e s)%stit)tion is vali(

i+ t!e sa'e is 0ENE:ICIA to t!e"rin#i"al.Art. 15 Art 13 Ne#essit o+#on#)rren#e in #ase o+ or 'ore a,entsR)le It is a(visa%le t!at $!en a "rin#i"al!ires several a,ents to a#t +or !i'* !e ')st(efne t!eir res"e#tive "o$ers $!et!ert!at 'a a#t onl as a )nit or $!et!er t!e'a a#t se"aratel.

Nat)re o+ ia%ilit o+ or 'ore a,ents to

t!eir "rin#i"al

a. T!e "res)'"tion is t!at ano%li,ation is oint. T!e r)le in 1+ollo$s t!e ,eneral "rin#i"leres"e#tin, soli(arit.

%. I+ soli(arit !as %een a,ree()"on* ea#! o+ t!e a,ents %e#o'essoli(aril lia%le

a. :or t!e non>+)lfll'ent o+t!e a,en# even t!o),! int!is #ase* t!e +ello$ a,entsa#te( %eon( t!e s#o"e o+

t!eir a)t!orit5 an(%. :or t!e +a)lt or ne,li,en#e

o+ !is +ello$ a,ents "rovi(e(t!e latter a#te( $it!in t!es#o"e o+ t!eir a)t!orit.

#. An a,ent $!o e-#ee(s !is"o$ers (oes not a#t as s)#! a,ent*an( t!ere+ore* t!e "rin#i"al ass)'esno lia%ilit to t!ir( "erson.

Art. 16 ia%ilit o+ A,ent +or Interest

T!e arti#le is $it!o)t "re)(i#e to a

#ri'inal a#tion t!at 'a %e %ro),!t%e#a)se o+ #onversion5

2n t!e ot!er !an(* t!ere is no lia%ilit+or interest on s)'s $!i#! !ave not %een#onverte( +or t!e a,ents o$n )se* )nlesso+ #o)rse* at t!e e-"iration o+ t!e a,en#*t!e a,ent still o$e( t!e "rin#i"al #ertains)'s.Art. 17 D)ties an( lia%ilities o+ a,ent tot!ir( "ersons

R)le T!e PRINCIPA is res"onsi%le +or t!ea#ts o+ t!e a,ent (one $it!in t!e s#o"e o+!is a)t!orit an( s!o)l( %ear an (a'a,e#a)se( to t!ir( "ersons.


39/43

T!ir( "arts lia%ilit to$ar(s a,ent

4 K!en t!e a,ent #ontra#ts in !iso$n na'e +or an )n(is#lose("rin#i"al.

4 K!ere t!e a,ent "ossesses a%enef#ial interest in t!e s)%e#t

'atter o+ t!e a,en#4 K!ere t!e a,ent "as 'one o+!is "rin#i"al to a t!ir( "art %'ista


40/43

#olle#t t!e #re(its ()e t!e "rin#i"al at t!eti'e t!e %e#o'e ()e an( (e'an(a%le. I+!e +ails to (o so* !e s!all %e lia%le +or(a'a,es )nless !e #an s!o$ t!at t!e #re(it#annot %e #olle#te( not$it!stan(in, t!ee-er#ise o+ ()e (ili,en#e on !is "art.

Art. 1; ia%ilit o+ A,ent +or :RAFD an(NEGIGENCE T!e a,ent is res"onsi%le to t!e"rin#i"al not onl +or +ra)( #o''itte( %!i' %)t also +or ne,li,en#e.20IGATI2NS 2: THE PRINCIPAArt. 11; 2%li,ations* in ,eneral* o+ t!ePrin#i"al to A,ent. T!e ()ties an( lia%ilities o+ t!e"rin#i"al are "ri'aril %ase( )"on t!e#ontra#t an( t!e vali(it o+ t!e #ontra#t

%et$een t!e'. In a((ition to !is#ontra#t)al ()ties* t!e "rin#i"al is )n(er ano%li,ation to (eal +airl an( in ,oo( +ait!$it! !is a,ent.Art. 111 Esto""el

Esto""el is a %ar $!i#! "re#l)(esa "erson +ro' (enin, or assertin,ant!in, #ontrar to t!at $!i#! !as %eenesta%lis!e( as t!e tr)t! % !is o$n (ee( orre"resentation eit!er e-"ress or i'"lie(.

K!en t!e Prin#i"al is in esto""el*t!ere+ore inno#ent t!ir( "ersons s!o)l( not%e "re)(i#e(.RATI:ICATI2N vs EST2PPE Ratif#ation (i8ers +ro' esto""el'ainl in t!at t!e +or'er rests on intention*e-"ress or i'"lie(* re,ar(less o+ "re)(i#eto anot!er* $!ereas esto""el rests on"re)(i#e rat!er t!an intention.A""arent a)t!orit vs. a)t!orit %esto""el A""arent a)t!orit is t!at $!i#!t!o),! not a#t)all ,rante(* t!e "rin#i"al


41/43

Art.116>t!e arti#le is

s)%e#t* !o$ever* to t!er)les )n(er art. 13.Art. 117ia%ilit to t!ir( "ersons o+

a,ent or "rin#i"al $!o#ontra#ts se"aratel >i+ a,ent is in ,oo(+ait!* t!e "rin#i"al s!all %elia%le in (a'a,es to t!ir("ersons $!ose #ontra#t ')st%e ree#te(. >a,ent alone in %a(+ait! is solel res"onsi%le

Art.11 In +o)r #ases "rovi(e( in t!isarti#le* t!e "rin#i"al I not lia%le +or

e-"enses in#)rre( % t!e a,ent.Reasons

Fn(er no.1* is to ")nis! t!e a,ent5+or t!e e-#e"tion* t!e a##e"tan#e o+%enefts is i'"lie( ratif#ation5

Fn(er no.* it is sel+>evi(ent5Fn(er no./ t!e a,ent is ,)ilt o+ %a(

+ait! an( la#< o+ (ili,en#e5 an(Fn(er no.* an e-"ress sti")lation

$!i#! is not #ontrar to la$* 'orals* ,oo(#)sto's* ")%li# or(er* or ")%li# "oli# is%in(in, %et$een t!e "arties

I?. o(es o+ E-tin,)is!'ent o+ A,en#Art. 11 Ho$ a,en# is e-tin,)is!e(

a. revo#ation5%. $it!(ra$al o+ t!e a,ent5#. (eat!* #ivil inter(i#tion*

insanit or insolven# o+ t!e"rin#i"al or a,ent5

(. (issol)tion o+ t!e fr' or#or"oration

e. a##o'"lis!'ent o+ t!e o%e#tor ")r"ose o+ t!e a,en#5

+. e-"iration o+ t!e "erio(General Classif#ation o+ 'o(es o+e-tin,)is!'ent

a. % a,ree'ent nos. 3 an( 6%. % t!e a#t o+ %ot! t!e "arties

or % ')t)al #onsent#. % t!e )nilateral a#t o+ one o+

t!e' nos. 1 an( (. % o"eration o+ la$ nos. /

an(

note "resen#e* #a"a#it* an( solven# o+"arties are essential +or #ontin)an#e o+a,en#

4 Pres)'"tion o+ #ontin)an#e o+

a,en#> $!en on#e s!o$n to !ave e-iste(*an a,en# relation $ill %e "res)'e(to !ave #ontin)e(* in t!e a%sen#e o+ant!in, to s!o$ its ter'ination5

an( t!e %)r(en o+ "rovin, arevo#ation or ot!er ter'ination o+ ana,en# is on t!e "art assertin, it

Art. 1; Revo#ation o+ a,en# %"rin#i"alReason > a,en# is ,enerall irrevo#a%leat t!e $ill o+ t!e "rin#i"al %e#a)se t!e tr)stan( #onf(en#e 'a !ave %een lostRevo#ation at $ill is "ro"er even i+

a. a,en# is onero)s%. t!e "erio( f-e( !as not et

e-"ire(K!en a,en# #annot %e revo $!en it is #o)"le($it! interest

> in relation to 17> $!en t!ere !as %een

a $aiver % t!e "rin#i"al> $!en "rin#i"al is not

o%li,e( to revo $!en revo#ation is

(one in %a( +ait!Gen. R)le > $!en revo#ation is "ro"er* t!ea,ent #annot ,et (a'a,es %e#a)se t!e"rin#i"al is 'erel e-er#isin, a ri,!tia%ilit o+ "rin#i"al #a)se( % revo#ation >!e )st res"on( in (a'a,es int!ose #ases $!erein not !avin, t!e ri,!t to(o so* !e s!o)l( (is#!ar,e t!e a,entMin(s o+ revo#ation > e-"ress or i'"lie(Ne#essit o+ noti#e o+ revo#ation

a. to a,ent%. to t!ir( "ersons

Ren)n#iation o+ a,en# % a,ent

a. a,en# ter'ina%le at $ills)%e#t onl to t!e #ontra#t)alo%li,ations o$in, to t!e "rin#i"al

%. Reason> $!ere t!e a,ent ter'inates t!e

a,en# in violation o+ a #ontra#t*t!e "rin#i"al !as no ri,!t toaJr'ative s"e#if# "er+or'an#eo+ t!e a,en# +or t!e essen#e o+


42/43

t!e relations!i" is #onsens)al t!e $illin,ness o+ t!e a,ent toa#t +or t!e "rin#i"al

Art. 11 > E8e#t o+ revo#ation inrelation to t!ir( "ersons

a. a,ent a)t!oriBe( to #ontra#t$it! s"e#ife( "ersons> its revo#ation $ill not "re)(i#es)#! t!ir( "ersons )ntil noti#et!ereo+ is ,iven to t!e sa'eReason sin#e t!e t!ir( "arties!ave %een 'a(e to %elieve %t!e "rin#i"al t!at t!e a,ent isa)t!oriBe( to (eal $it! t!e'*t!e !ave a ri,!t to "res)'et!at t!e re"resentation#ontin)es to e-ist in t!e a%sen#eo+ notif#ation % t!e "rin#i"al

A,en# +or #ontra#tin, $it! s"e#ife("ersons5

a. so t!at t!ir( "arties 'a not%e "re)(i#e(* t!e "rin#i"al $!o+ails to ,ive t!e notif#ation #an%e !el( lia%le +or (a'a,es

%. no noti#e is re=)ire( +or"ersons $!o alrea( t!e "o$er to revo an o+ t!e "rin#i"als'a revo reasons o+ !ealt! #an )sti+$it!(ra$alE8e#t $!en a,ent s)es "rin#i"al

a. $ill not or(inaril "er'it t!e#ontin)ation o+ t!e a,en#5

%. s)#! a #o'"laint $ill %ee=)ivalent to $it!(ra$al o+ t!ea,ent +ro' t!e a,en#

Min(s o+ $it!(ra$ala. $it!o)t )st #a)se> t!e la$ i'"oses )"on t!ea,ent t!e ()t to ,ive ()e noti#e


43/43

to t!e "rin#i"al an( i+ t!e$it!(ra$al is $it!o)t )st #a)se*to in(e'ni+ t!e "rin#i"al s!o)l(t!e latter s)8er (a'a,e %reason o+ s)#! $it!(ra$al

%. $it! )st #a)se> i+ t!e $it!(ra$al is

$it! a vali( reason* t!ea,ent #annot %e !el(lia%le

Art. 1 2%li,ation o+ a,ent to #ontin)eto a#t a+ter $it!(ra$alReason to "revent (a'a,e to t!e "rin#i"alArt. 1/; K!en (eat! o+ "rin#i"al (oesnot ter'inate a,en#Instan#es $!en (eat! (oes not a8e#t

a,en#a. i+ t!e a,en# !as %een

#onstit)te( in t!e #o''oninterest o+ t!e "rin#i"al an( t!ea,ent5 an(

%. i+ it !as %een #onstit)te( int!e interest o+ a t!ir( "erson$!o !as a##e"te( t!esti")lation in !is +avor

Art. 1/1 Nat)re o+ a,ents a)t!orit a+tert!e (eat! o+ t!e "rin#i"al

t!e la$ re=)ires t!at t!ere ')st %e ,oo(+ait! > t!e (eat! o+ t!e "rin#i"ale-tin,)is!es t!e a,en#5 %)t in t!e sa'e$a t!at revo#ation o+ t!e a,en# (oes not"re)(i#e "ersons $!o !ave (ealt $it! t!ea,ent in ,oo( +ait! $it!o)t noti#e o+ t!erevo#ation

Art. 1/ Deat! o+ a,entD)t o+ a,ents !eirs

a. t!e !eirs ()t to #ontin)e t!ea,en# a+ter t!e (eat! o+ t!ea,ent arises +ro' $!at 'a %e

ter'e( as an a,en# %o"eration o+ la$ or a "res)'e(ta#it a,en#

> onl te'"oraril%. $!ere t!e a,en# is one #o)"le($it! an interest in t!e s)%e#t'atter o+ a,en#* t!e (eat! o+ t!ea,ent $ill not instantl en( t!erelations!i"* an( #onse=)entl* !is!eirs or re"resentatives 'as)%se=)entl e-er#ise t!e "o$er#on+erre( at least inso+ar as 'a %ene#essar to "rote#t t!e estate o+

t!e a,entE8e#t o+ a,ents (eat! in #ase a,en##o)"le( $it! an interest > ,enerall* t!e a,ents (eat!ter'inates t!e a,en# +or it s!o)l( not %e#ontin)e( % one )"on $!o' t!e "rin#i"al!as re"ose( no #onf(en#eContin)ation % a,ents !eirs o+ a,en# General r)le > an a,en# #alls +or "ersonalservi#es. 2r(inaril* t!ere+ore* t!e a,ents

()ties #annot %e "er+or'e( % !is "ersonalre"resentatives* an( in #ase o+ (eat!* t!ea,en# is ,enerall t!ere% ter'inate(e-#e"tions see ()t o+ a,ents !eirs

Date post:	01-Mar-2018
Category:	Documents
Upload:	gellie-vallerie
View:	248 times
Download:	0 times

Agency and Partnership Notes

Documents