- Statute
- Civil Code
- Article
- Art. 1898
- Topic
- Obligations of the Agent
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE X AGENCY
- Chapter
- CHAPTER 2 Obligations of the Agent
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
If the agent contracts in the name of the principal, exceeding the scope of his authority, and the principal does not ratify the contract, it shall be void if the party with whom the agent contracted is aware of the limits of the powers granted by the principal. In this case, however, the agent is liable if he undertook to secure the principal's ratification. (n)
Intellegal Wiki · In plain terms
If an agent, acting in the principal's name, goes beyond the authority given and the principal refuses to ratify the deal, the contract is void when the other party knew the agent's powers were limited. The agent, however, becomes personally liable if they had promised to secure the principal's ratification.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Spouses Delfin O. Tumibay v. Spouses Melvin A. Lopez, the Supreme Court held: Granted the petition and reinstated a modified RTC decision, holding that the buyer's transfer of title to herself before full payment (only 32.58% paid) was a substantial breach of the contract to sell warranting rescission under Article 1191, and that the deed was void under Article 1898 because the agent acted beyond her authority without ratification.
One leading Supreme Court case applying this provision.
Cases applying this article
- Spouses Delfin O. Tumibay v. Spouses Melvin A. Lopez G.R. No. 171692
- Marcos v. Prieto G.R. No. 158597
- Lim v. Court of Appeals G.R. No. 192615