Legalese 2009 (Week 39)


commission agent – one whose business is to receive and sell goods for a commission and who is entrusted by the principal with the possession of goods to be sold (Comments and Cases on Partnership, Agency and Trust, p. 544 [2005]).


Art. 1909. The agent is responsible not only for fraud, but also for negligence, which shall be judged with more or less rigor by the courts, according to whether the agency was or was not for a compensation. (Civil Code)


In the fulfillment of his obligations, the agent is responsible not only for fraud but also for negligence. The circumstance that the agency is or is not gratuitous will be considered by the courts in fixing the liability of the agent for negligence (but not fraud). An agency is presumed to be for compensation. (Comments and Cases of Partnership, Agency and Trust, p. 549-550 [2005]).


A, agent, promised to insure P’s goods against loss. A failed to keep his promise to insure the goods, which were destroyed by fire. May P hold A liable for the loss of the goods?