Page 464 - Important Provisions of The New Civil Code

Article 1898. 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)

Article 1900. So far as third persons are

concerned, an act is deemed to have been

performed within the scope of the agent's

authority, if such act is within the terms of the

power of attorney, as written, even if the agent

has in fact exceeded the limits of his authority

according to an understanding between the

principal and the agent. (n)