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June 1, 2022

WHAT IS AGENCY TO SELL?

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Published — June 1, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Aside from reading about Agency to Sell, you may also read: Essentials of Special Power of Attorney (SPA) to Sell Real Property

  • By the contract of agency, 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.

  • In an agency to sell, the agent has simply to account for the proceeds of the sale he may make on the principal’s behalf.

  • In an agency to sell, the agent in dealing with the thing received, must act and is bound according to the instructions of his principal.

Agency to sell (like a Consignment for Sale) is different from a Contract of Sale. How do these two concepts differ?

Under the Civil Code:

By the contract of agency, 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.

And in construing a contract containing provisions characteristic of both the contract of sale and of the contract of agency to sell, the essential clauses of the whole instrument shall be considered.

Further, sale may be distinguished from an agency to sell, as follows:

  1. In a sale, the buyer receives the goods as owner; in an agency to sell, the agent receives the goods as the goods of the principal who retains his ownership over them and has the right to fix the price and the terms of the sale and receive the proceeds less the agent’s commission upon the sales made;
  2. In a sale, the buyer has to pay the price; in an agency to sell, the agent has simply to account for the proceeds of the sale he may make on the principal’s behalf;
  3. In a sale, the buyer, as a general rule, cannot return the object sold; in an agency to sell, the agent can return the object in case he is unable to sell the same to a third person;
  4. In a sale, the seller warrants the thing sold; in an agency to sell, the agent makes no warranty for which he assumes personal liability as long as he acts within his authority and in the name of the seller; and
  5. In a sale, the buyer can deal with the thing sold as he pleases being the owner; in an agency to sell, the agent in dealing with the thing received, must act and is bound according to the instructions of his principal.

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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