Business Contracts

The liability of the agent is governed by Articles 1991 to 1997 of the Civil Code, and by the ordinary law of contractual liability . In effect, liability depends on whether the agent is personally performing the agency agreement, in accordance with Articles 1991, paragraph 1  and 1992, paragraph 1 , or has substituted an agent, in accordance with Article 1994 . If there is more than one agent for the same deed, Article 1995 provides that “there is  joint and several liability between them only insofar as it is expressed”. 

Civil Code, Art. 1991, para. 1: “The agent is bound to carry out the agreement for as long as he remains in charge of it, and is liable for any damages resulting from his failure to do so”

Civil Code, Art. 1992: “The agent is liable not only for fraud, but also for any faults he commits in his management”.

Civil Code, Art. 1994: "The agent is liable for the person he has substituted in the management :

1° when he has not received the power to substitute himself ;

2° when this power was conferred on him without designating a person, and the person he chose was manifestly incapable or insolvent.

In all cases, the principal may act directly against the person whom the agent has substituted".

482. Invoking of agent's liability