CHAPTER VI

COMMISSION AGENCY

 

Section 833.- A commission agent is a person who, in the course of his business, undertakes to buy or sell property or undertakes any other commercial transaction in his own name on account of the principal.

 

Section 834.- Unless otherwise agreed, a commission agent is entitled to a usual rate of remuneration on every transaction concluded by him

 

Section 835.- The provisions of this Code concerning Agency apply to Commission agency in so far as they are not contrary to the provisions of this Chapter.

 

Section 836.- An incapacitated person cannot act as commission agent unless duly authorised to that effect.

 

Section 837.- The commission agent, by a sale or purchase or any other transaction made on account of the principal, acquires rights against the other party to such transaction and becomes bound to him.

 

Section 838.- If the other party to the transaction does not perform his obligation, the commission agent is not himself liable to the principal for the performance unless it is provided by the contract, or may be implied from the course of dealing between the principal and agent, or by local usage.

The commission agent, who undertakes to guarantee the execution of a contract upon the terms mentioned in the foregoing paragraph, is a del credere agent and is entitled to a special remuneration.

 

Section 839.- When a commission agent has made a sale for a higher price or purchase for a lower price than that designated by the principal, if the agent takes upon himself the difference, such sale or purchase takes effect against the principal.

 

Section 840.- When  a commission agent has made a sale for a higher price or purchase for a lower price than that designated by the principal, he cannot take the benefit on such transaction and must account it to the principal.

 

Section 841.- The commission agent shall report his activities to the principal, and upon execution of the commission, shall inform the principal without delay.

 

Section 842.- Where a property has been entrusted to a commission agent the provisions of this Code concerning Deposit apply mutatis mutandis.

In case of unavoidable necessity the commission agent may dispose of the property in a manner provided in Section 631 concerning Carriage.