Agency Formal Requirements Case Digest

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    AGENCY FORMAL REQUIREMENTS CASE DIGEST

    Macke v. Camps

    P a partnership transacted with defendant allegedly represented by flores

    Flores purchase various goods for R hotel business

    P sued R on the balance of said purchases

    R contended that he never received such goods and that he should not be liable

    thereon

     A contract was presented in court a lease wherein R is a party to such contract and

    flores as witness and designated managing agent therein

    ISSUE: wn there was agencyS!:"ES

    R: a person cannot be permitted to deny the authority of his agent to the pre#udice of

    third person when $%& such agent was clothe with apparent authority by him $'& he holds

    him as agent to the public $(& the transaction by such agent is done in goodfaith $includebut not limited that transaction is the usual and ordinary course of the business&

    ) !ontract e*ecuted

    Home Insuance v. US

    R+s ,essel carrying a machines arrived in manila and delivered to consignee R

    !onsignee sued damages against R- ./!ustoms and P insurance company

    P paid the insured cargo and demanded reimbursement against R and ./!

    R contends that it was damaged in the possession of ./! while the latter invo0e non)

    suability

    P+s counsel appeared in court claiming authority to compromise which was orally given1

    2he court dismiss the case for failure to appear

    ISSUE: wn there was proper grant of authority

    S!: 3/1

    Under R/! and laws- authority to compromise must be by virtue of special authority1 It

    must be in writing- if not- there must be evidence pleaded and proven1 Self serving

    evidence does not suffice as in this case

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     Yu C!uck v. "on# L$ %o

    R a domestic corp engage in the business of news printing

    Under its by)laws all contract in writing must be signed by the President

    !hen was appointed as general manager of the !orp which later on entered an

    employment contract for a term of ( years with P with a provision that in case of breach

    the (years salary be paid on P

    4ater on p was discharged by 5ong- a /I! as manager while !hen left for china

    P instituted an action for illegal dismissal

    R contended that !hen has no authority to enter into such employment contract and

    that dismissal was #ustified

    ISSUE: wn there was proper grant of authority

    S!: 3/

    R: an officer or agent who has general control and management of the corp or specific

    part thereof may bind the corp in employing agent or employees

    6: usual and necessary in the conduct of such business

    R: a contract to be ratified- 0nowledge of the actual contract must be established7 in this case there was none

    although the President saw the P

    ER: $%& unless the authority of employing agent or employees is e*pressly vestedin a certain officer or board of directors7 $'& the contract employment entered into

    is unre8asonable which is pre#udicial to the corp

     At $'& the term of the contract was so onerous that it was long and that if given effect would lead the corp

    into insolvencytfg