Document-Id: 911000, Please cite as: "https://www.trans-lex.org/911000"
Title
II.1 - Prerequisites and effects of agency
Content
No. II.1 - Prerequisites and effects of agency
Where an agent acts on behalf of a principal within the scope of his authority which has been granted to him expressly or can be implied from the circumstances, his acts bind the principal and the third party unless it follows from the circumstances of the case that the agent undertakes to bind himself only.
Commentary
1 If the prerequisites of the Principle are met, the contract is concluded between the third party and the party which has granted the authority to the agent (the "principal").
2 The scope of the agent's authority must be determined through interpretation of the terms of the power of attorney (in case of an express authority) or the principal's conduct or other circumstances from which the principal's intention to confer authority on the agent can be inferred (implied authority). Even absent an express or implied authority, the acts of the agent may bind the principal vis-à-vis the third party in a case of apparent authority.
3 The authority of organs or officers of corporations are not governed by the Principle, but by special rules of domestic corporation law.
2 The scope of the agent's authority must be determined through interpretation of the terms of the power of attorney (in case of an express authority) or the principal's conduct or other circumstances from which the principal's intention to confer authority on the agent can be inferred (implied authority). Even absent an express or implied authority, the acts of the agent may bind the principal vis-à-vis the third party in a case of apparent authority.
3 The authority of organs or officers of corporations are not governed by the Principle, but by special rules of domestic corporation law.
References
Model Laws
A Contract Code: Drawn up on Behalf of the English Law CommissionCode Européen des Contrats - European Contract CodePrinciples of Latin American Contract Law (PLACL)The Draft Civil Code for Israel in: Siehr, Kurt/Zimmermann, Reinhard (ed.) The Draft Civil Code for Israel in comparative perspective, 2008National Legislation
Bürgerliches Gesetzbuch - German Civil CodeCivil Code of the People's Republic of China (2020)Civil Code Québec 1991Contract Law of the People's Republic of ChinaDanish Contracts ActEthiopian Civil CodeFinnish Contracts ActFrench Civil Code 2016GIW DDRGIW GDRIndonesian Civil Code (excerpts)Japanese Civil Code 2020Act No. 89 of 1896
Amendment of Act No. 44 of 2017Louisiana Civil Code 2015Nieuw Burgerlijk Wetboek - New Netherlands Civil Code ( Dutch Civil Code )Philippines Republic Act 386 (Civil Code)Russian Civil CodeSaudi Arabia Civil Transactions Law - Royal Decree No. M/191, June 18, 2023, official translationThe Indian Contract Act, 1872 (Act no. 9 of 1872)
International Legislation
Convention on Agency in the International Sale of Goods (Geneva, 17 February 1983).Fontaine, Marcel, OHADA Uniform Act On Contract Law Preliminary DraftOrganization for the Harmonization of Business Law in Africa (OHADA), Uniform act relating to general commercial lawArbitral Awards
CRCICA Award no. 2/1994, in: Mohie Eldin I. Alam Eldin, Arbitral Awards of the Cairo Regional Centre of International Commercial Arbitration, The Hague 2000, 141Doctrine
Domingo, Ortega, Rodriguez-Antolin, Zambrana, Principios de Derecho Global, Navarra, 2006Hanisch, Hans, Das Genfer Abkommen über die Stellvertretung bei internationalen Wareneinkäufen von 1983, in: Festschrift Giger, Bern 1989, at 251 et seq.Jenks, Edward et al., A Digest of English Civil Law, London, Sydney, Calcutta, Winnipeg, Wellington 1921.Kersley, R.H., M.A., LL.M./ Broom, Herbert, LL.D., A Selection of Legal Maxims, 10th ed. London, 1939Ripert, Georges, Les Règles du Droit Civil Applicables aux Rapports Internationaux (Contribution à l'Etude des Principes Généraux du Droit Visés au Statut de la Cour Permanente de Justice Internationale), 44 Rec.Cours 1933-II, at 569 et seq.Schmitthoff, Clive, Agency in International Trade, A Study in Comparative Law, 117 Rec.Cours 1970-I, at 115 et seq.Principles / Restatements
Principles of European Contract Law - PECLUNIDROIT Principles of International Commercial Contracts 2016