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: w/n there was agency

SC:YES
R: a person cannot be permitted to deny the authority of his agent to the prejudice of
third person when (1) such agent was clothe with apparent authority by him (2) he holds
him as agent to the public (3) the transaction by such agent is done in goodfaith (include
but not limited that transaction is the usual and ordinary course of the business)

- Contract executed

Home Insurance v. US
Rs Vessel carrying a machines arrived in manila and delivered to consignee R

Consignee sued damages against R, BOCustoms and P insurance company

P paid the insured cargo and demanded reimbursement against R and BOC

R contends that it was damaged in the possession of BOC while the latter invoke non-
suability

Ps counsel appeared in court claiming authority to compromise which was orally given.
The court dismiss the case for failure to appear

ISSUE: w/n there was proper grant of authority

SC: NO.

Under ROC and laws, authority to compromise must be by virtue of special authority. It
must be in writing, if not, there must be evidence pleaded and proven. Self serving
evidence does not suffice as in this case
Yu Chuck v. Kong Li Po
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

Chen was appointed as general manager of the Corp which later on entered an
employment contract for a term of 3 years with P with a provision that in case of breach
the 3years salary be paid on P

Later on p was discharged by Hong, a OIC as manager while Chen left for china

P instituted an action for illegal dismissal

R contended that Chen has no authority to enter into such employment contract and
that dismissal was justified

ISSUE: w/n there was proper grant of authority

SC: NO

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

Q: usual and necessary in the conduct of such business

R: a contract to be ratified, knowledge of the actual contract must be established; in this case there was none
although the President saw the P

ER: (1) unless the authority of employing agent or employees is expressly vested
in a certain officer or board of directors; (2) the contract employment entered into
is unre\asonable which is prejudicial to the corp
At (2) the term of the contract was so onerous that it was long and that if given effect would lead the corp
into insolvencytfg