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ART. 1878. SPECIAL POWERS OF ATTORNEY ARE NECESSARY IN THE FOLLOWING

CASES:

(1) TO MAKE SUCH PAYMENTS AS ARE NOT USUALLY CONSIDERED AS ACTS OF

ADMINISTRATION;

(2) TO EFFECT NOVATIONS WHICH PUT AN END TO OBLIGATIONS ALREADY IN

EXISTENCE AT THE TIME THE AGENCY WAS CONSTITUTED;

(3) TO COMPROMISE, TO SUBMIT QUESTIONS TO ARBITRATION, TO RENOUNCE

THE RIGHT TO APPEAL FROM A JUDGMENT, TO WAIVE OBJECTIONS TO THE VENUEOF AN ACTION OR TO ABANDON A PRESCRIPTION ALREADY ACQUIRED;

(4) TO WAIVE ANY OBLIGATION GRATUITOUSLY;

(5) TO ENTER INTO ANY CONTRACT BY WHICH THE OWNERSHIP OF ANIMMOVABLE IS TRANSMITTED OR ACQUIRED EITHER GRATUITOUSLY OR FOR A

VALUABLE CONSIDERATION;

(6) TO MAKE GIFTS, EXCEPT CUSTOMARY ONES FOR CHARITY OR THOSE MADE TO

EMPLOYEES IN THE BUSINESS MANAGED BY THE AGENT;

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(7) TO LOAN OR BORROW MONEY, UNLESS THE LATTER ACT BE URGENT AND

INDISPENSABLE FOR THE PRESERVATION OF THE THINGS WHICH ARE UNDER

ADMINISTRATION;

(8) TO LEASE ANY REAL PROPERTY TO ANOTHER PERSON FOR MORE THAN ONEYEAR;

(9) TO BIND THE PRINCIPAL TO RENDER SOME SERVICE WITHOUT

COMPENSATION;

(10) TO BIND THE PRINCIPAL IN A CONTRACT OF PARTNERSHIP;

(11) TO OBLIGATE THE PRINCIPAL AS A GUARANTOR OR SURETY;

(12) TO CREATE OR CONVEY REAL RIGHTS OVER IMMOVABLE PROPERTY;

(13) TO ACCEPT OR REPUDIATE AN INHERITANCE;

(14) TO RATIFY OR RECOGNIZE OBLIGATIONS CONTRACTED BEFORE THE AGENCY;

(15) ANY OTHER ACT OF STRICT DOMINION. (N)

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TO MAKE PAYMENT

PAYMENT IS THE DELIVERY OF MONEY OR THE PERFORMANCE IN ANY OTHER MANNER OFAN OBLIGATION.

IT IS AN ACT OF OWNERSHIP BECAUSE IT INVOLVES THE CONVEYANCE OF OWNERSHIP OFMONEY OR PROPERTY. BUT WHEN PAYMENT IS MADE IN THE ORDINARY COURSE OF

MANAGEMENT IT IS CONSIDERED A MERE ACT OF ADMINISTRATION.

HENCE, SUCH SPECIAL POWER TO MAKE A PAYMENT IS IMPLIED FROM THE AUTHORITY TOBUY A DESIGNATED PIECE OF LAND AT A CERTAIN PRICE.

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TO EFFECT NOVATIONS

NOVATION IS THE EXTINCTION OF AN OBLIGATION THROUGH THE CREATION OF A NEWONE WHICH SUBSTITUTES IT BY CHANGING THE OBJECT OR PRINCIPAL CONDITIONS

THEREOF, SUBSTITUTING A DEBTOR, OR SUBROGATING ANOTHER IN THE RIGHT OF THECREDITOR.

THE OBLIGATION MUST ALREADY BE IN EXISTENCE AT THE TIME THE AGENCY WASCONSTITUTED.

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TO COMPROMISE,ETC.

COMPROMISE IS A CONTRACT WHEREBY THE PARTIES, BY MAKING RECIPROCALCONCESSIONS, AVOID A LITIGATION OR PUT AN END TO ONE ALREADY COMMENCED.

ARBITRATION IS WHERE THE PARTIES SUBMIT THEIR CONTROVERSIES TO ONE OR MOREARBITRATORS FOR DECISION.

THE SAME IS TRUE WITH RESPECT TO AGENT TO WAIVE A.) THE RIGHT TO APPEAL FROMA JUDGMENT B.) OBJECTIONS TO THE VENUE OF AN ACTION AND C.) A PRESCRIPTION

ALREADY ACQUIRED.

THE GRANT OF SPECIAL POWER REGARDING ONE OF THE ACTS IN NUMBER 3 OFARTICLE 1878 IS NOT ENOUGH TO AUTHORIZE THE OTHERS.

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TO WAIVE AN OBLIGATION GRATUITOUSLY

IT REFERS TO CONDONATION OR REMISSIONTHE AGENT CANNOT WAIVE A RIGHT BELONGING TO THE PRINCIPAL WITHOUT VALUABLE

CONSIDERATION OR EVEN FOR A NOMINAL CONSIDERATION.

HE CANNOT BIND THE PRINCIPAL WHO IS OBLIGEE UNLESS SPECIALLY AUTHORIZED TO DOSO.

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TO CONVEY OR ACQUIRE IMMOVABLE

IN NUMBER 5 IT REFERS TO THE CONTRACT WHICH IS GRATUITOUS OR ONEROUS.AND THAT WHICH REFERS ONLY TO IMMOVABLES.

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TO MAKE GIFTS

GIFT OR DONATION IS AN ACT OF LIBERALITY WHEREBY A PERSON DISPOSES

GRATUITOUSLY OF A THING OR RIGHT IN FAVOR OF ANOTHER WHO ACCEPTS IT. (ART. 725)

AN AGENT WITHOUT SPECIAL POWER FROM THE PRINCIPAL CANNOT MAKE GIFTS.

BUT THE MAKING OF CUSTOMARY GIFTS FOR CHARITY, OR THOSE MADE TOEMPLOYEES IN THE BUSINESS MANAGED BY THE AGENT ARE CONSIDERED ACTS

OF ADMINISTRATION.

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TO LOAN OR BORROW MONEYIN A LOAN OF MONEY, THE BORROWER IS BOUND TO PAY TO THE CREDITOR AN EQUAL

AMOUNT OF THE SAME KIND AND QUALITY. (ART. 1953)

THE EXCEPTION IN NO. 7 REFERS TO BORROW AND NOT TO LOAN.

THE AGENT, HOWEVER, MAY BE EMPOWERED TO BORROW MONEY. (ART. 1890.)

IN NO. 7 IT ONLY REFERS TO MONEY AND NOT TO OTHER FUNGIBLE THINGS.

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TO LEASE REALTY FOR MORE THAN ONE YEAR

BY IMPLICATION, THE LEASE OF REALTY TO ANOTHER PERSON FOR ONE YEAR OR LESS ISAN ACT OF MERE ADMINISTRATION PROVIDED THE LEASE IS NOT REGISTERED.

IN NO. 8 IT DOES NOT REFER TO LEASE OF REAL PROPERTY FROM ANOTHER PERSON ANDTO LEASE OF PERSONAL PROPERTY.

AN AGREEMENT FOR THE LEASING OF REAL PROPERTY FOR A LONGER PERIODTHAN ONE YEAR IS UNENFORCEABLE UNLESS MADE IN WRITING.

IT FOLLOWS THAT EVEN IF THE AGENT IS ESPECIALLY AUTHORIZED, THE LEASEIS NOT ENFORCEABLE AGAINST THE PRINCIPAL IF IT IS NOT IN WRITING.

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TO BIND THE PRINCIPAL TO RENDER SERVICEGRATUITOUSLY.

THE AGENT MAY BIND HIMSELF TO RENDER SERVICE WITHOUT COMPENSATION.(ART. 1875)

HOWEVER, TO BIND THE PRINCIPAL TO THAT EFFECT, A SPECIAL POWER ISNECESSARY.

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TO BIND THE PRINCIPAL IN A CONTRACT OFPARTNERSHIP

BY THE CONTRACT OF PARTNERSHIP, THE PARTNERS BIND THEMSELVES TO CONTRIBUTEMONEY, PROPERTY AND INDUSTRY TO A COMMON FUND WITH THE INTENTION OF

DIVIDING THE PROFITS AMONG THEMSELVES.THE CONTRACT OF PARTNERSHIP THUS CREATES OBLIGATIONS THE FULFILMENT OF

WHICH REQUIRES AN ACT OF STRICT OWNERSHIP.

FURTHERMORE, THE PRINCIPAL MUST PERSONALLY HAVE TRUST ANDCONFIDENCE IN THE PROPOSED PARTNERS.

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TO OBLIGATE PRINCIPAL AS GUARANTOR OR

SURETYBY THE CONTRACT OF GUARANTY, THE GUARANTOR BINDS HIMSELF TO FULFILL THE

OBLIGATION OF THE PRINCIPAL DEBTOR IN CASE THE LATTER SHOULD FAILS TO DO SO. IFTHE PERSON BINDS HIMSELF SOLDARILY,HE IS A SURETY AND THE CONTRACT IS CALLED A

SURETYSHIP.

A CONTRACT OF GUARANTY CANNOT BE INFERRED FROM VAGUE OR GENERALWORDS.

A POWER OF ATTORNEY GIVEN TO SELL OR TO LEASE THE PROPERTY OF THE PRINCIPALAND GENERALLY

E.G. TO PERFORM AND EXECUTE ALL AND EVERY LAWFUL AND REASONABLE ACT ASFULLY AND EFFECTIVELY AS I MIGHT OR COULD DO IF PERSONALLY PRESENT

DOES NOT OPERATE TO AUTHORIZE THE AGENT TO SIGN IN BEHALF OF THE PRINCIPAL A

SURETY BOND IN FAVOR OF THE GOVERNMENT IN CONNECTION WITH THE PURCHASE OFCERTAIN MATERIALS DREDGED FROM A FISH POND.

A CONTRACT OF GUARANTY IS UNENFORCEABLE UNLESS IT IS MADE INWRITING.

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TO CREATE OR CONVEY REAL RIGHTS OVER

IMMOVABLE PROPERTY BELONGING TO HISPRINCIPAL WITHOUT SPECIAL POWER

-THIS IS A STRICT ACT OF OWNERSHIP

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TO ACCEPT OR REPUDIATE AN INHERITANCE

ANY PERSON HAVING THE FREE DISPOSAL OF HIS PROPERTY MAY ACCEPT OR REPUDIATEAN INHERITANCE

THIS ACT IS ONE OF STRICT DOMINION

HENCE THE NECESSITY OF SPECIAL AUTHORITY

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TO RATIFY OBLIGATIONS CONTRACTEDBEFORE THE AGENCY

AN AGENT CANNOT ERFFECT NOVATION OF OBLIGATIONS EXISTING AT THE TIME OF THECONSTITUTION OF THE AGENCY UNLESS HE BE SPECIALLY AUTHORIZED TO DO SO.

ON THE SAME PRINCIPLE, HE CANNOT RATIFY OR RECOGNIZE OBLIGATIONS CONTRACTEDBEFORE THE AGENCY WITHOUT SPECIAL POWER FROM THE PRINCIPAL.

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ANY OTHER ACT OF STRICT DOMINION

GENERALLY, A SALE OF PURCHASE OF PERSONAL PROPERTY IS AN ACT OF STRICTDOMINION.

HENCE, A SPECIAL POWER IS NECESSARY IN ORDER THAT THE ACT SHALL BE BINDING ONTHE PRINCIPAL.

THUS AN AGENT APPOINTED TO MANAGE A TAILORING SHOP CANNOT SELL SEWINGMACHINES USED IN SAID ESTABLISHMENT.

BUT A SALE OR PURCHASE MADE IN THE ORDINARY COURSE OF MANAGEMENT (E.G. SALEOF BOOKS IN A BOOKSTORE) IS MERELY AN ACT OF ADMINISTRATION AND THEREFORE,

INCLUDED IN AN AGENCY COUCHED IN GENERAL TERMS (ART. 1877)

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ART. 1879. A SPECIAL POWER TO SELL

EXCLUDES THE POWER TO MORTGAGE;

AND A SPECIAL POWER TO MORTGAGE

DOES NOT INCLUDE THE POWER TO

SELL. (N)

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SCOPE OF AUTHORITY TO SELL AND TOMORTGAGE

THE AUTHORITY TO SELL THE PRINCIPALS PROPERTY DOES NOT CARRY WITH IT ORIMPLY THE AUTHORITY TO MORTGAGE. AND VICE VERSA, THE SPECIAL POWER TOMORTGAGE IS NOT TO BE IMPLIED FROM THE POWER TO SELL. IN THE ABSENCE OS

SPECIAL AUTHORITY, THE SALE OR MORTGAGE WILL BE UNENFORCEABLE AGAINST THEPRINCIPAL AS THE AGENT HAS ACTED BEYOND HIS POWERS.

THE AGENT CANNOT SELL OR MORTGAGE THE PROPERTY BELONGING TO THE

PRINCIPAL WITHOUT SPECIAL POWER.

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ART. 1880. A SPECIAL POWER TO

COMPROMISE DOES NOT AUTHORIZE

SUBMISSION TO ARBITRATION. (1713A)

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SCOPE OF SPECIAL POWER TOCOMPROMISE/TO SUBMIT TO ARBITRATION

IF THE AGENT IS GRANTED A SPECIAL POWER TO COMPROMISE HE CAN DO ANYTHINGWHICH THE PRINCIPAL HIMSELF CAN DO TO EFFECT A SETTLEMENT.

BUT HE IS NOT THEREBY AUTHORIZED TO SUBMIT TO ARBITRATION BECAUSE WHILE THEPRINCIPAL MAY HAVE CONFIDENCE IN THE AGENTS JUDGMENT, THE ARBITRATOR MAY

NOT POSSESS THE TRUST OF THE PRINCIPAL.

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ART. 1881. THE AGENT MUST ACT

WITHIN THE SCOPE OF HIS AUTHORITY.

HE MAY DO SUCH ACTS AS MAY BE

CONDUCIVE TO THE ACCOMPLISHMENT

OF THE PURPOSE OF THE AGENCY.

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ART. 1882. THE LIMITS OF THE AGENT S

AUTHORITY SHALL NOT BE CONSIDERED

EXCEEDED SHOULD IT HAVE BEEN

PERFORMED IN A MANNER MORE

ADVANTAGEOUS TO THE PRINCIPAL

THAN THAT SPECIFIED BY HIM. (1715)

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AUTHORITY OF AN AGENT

IT IS THE POWER OF THE AGENT TO AFFECT THE LEGALRELATIONS OF THE PRICIAPL BY ACTS DONE IN

ACCORDANCE WITH THE PRINCIPALS MANIFESTATION OFCONSENT TO HIM

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2 REQUISITES WHEN PRINCIPAL BOUND BY ACT OFAGENT

THE AGENT MUST ACT WITHIN THE SCOPE OF HIS (ACTUALOR APPARENT) AUTHORITY; AND

THE AGENT MUST ACT ON BEHALF OF THE PRINCIPAL

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4 QUALIFICATIONS WHEN PRINCIPAL IS BOUND BYTHE ACTS OF AGENTS BEYOND HIS POWERS

WHERE HIS (PRINCIPALS) ACTS HAVE CONTRIBUTED O DECEIVE A THIRSPERSON IN GOOD FAITH;

WHERE THE LIMITATIONS UPON THE POWER CREATED BY HIM COULD NOT HAVEBEEN KNOWN BY THE THIRD PERSON;

WHERE THE PRINCIPAL HAS PLACED IN THE HANDS OF THE AGENTINSTRUMENTS SIGNED BY HIM IN BLANK

WHERE THE PRINCIPAL HAS RATIFIED THE ACTS OF THE AGENT.