- Statute
- Civil Code
- Article
- Art. 1911
- Topic
- Obligations of the Principal
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE X AGENCY
- Chapter
- CHAPTER 3 Obligations of the Principal
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
Even when the agent has exceeded his authority, the principal is solidarily liable with the agent if the former allowed the latter to act as though he had full powers. (n)
Intellegal Wiki · In plain terms
Where a principal has let an agent appear to have full powers, the principal is held solidarily liable together with the agent even for acts that actually exceeded the agent's authority. This protects third parties who reasonably relied on the appearance of authority the principal allowed.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Citystate Savings Bank v. Teresita Tobias, the Supreme Court held: A bank is solidarily liable under the doctrine of apparent authority (Article 1911) where it allows an employee to act as though clothed with full powers; banks owe the highest degree of diligence and a fiduciary duty to clients.
One leading Supreme Court case applying this provision.
Cases applying this article
- Country Bankers Insurance Corporation v. Keppel Cebu Shipyard G.R. No. 166044
- Kue Cuison v. The Court of Appeals G.R. No. 88539
- Furukawa Sangyo Kaisha (H.K.) v. Clark Premiere Industrial G.R. No. 239044
- Citystate Savings Bank v. Teresita Tobias G.R. No. 227990
- Buenavista Properties v. Ramon G. Mariño G.R. No. 212980
- Filipinas Life v. Palacio G.R. No. 159489
- Chevron Philippines v. Looyuko G.R. No. 236525