Transactions covered by general agency

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. The basis for agency is representation. On the part of the principal, there must be an actual intention to appoint or an intention naturally inferrable from his words or actions; and on the part of the agent, there must be an intention to accept the appointment and act on it, and in the absence of such intent, there is generally no agency.

The agency comprises all the business of the principal, but, couched in general terms, it is limited only to acts of administration.

However, while the law on agency prohibits respondent Guevarra from obtaining reimbursement, his right to recover may still be justified under the general law on obligations and contracts. Article 1236, second paragraph, Civil Code, provides: Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowledge or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the debtor.

To be a general agent, it is sufficient that the listed authorized transactions apparently cover all that is required to run the business of the principal. It is not necessary that the power granted actually says "all the business of the principal." (G.R. No. 129919)

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