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Mercantile agency is governed solely by the Civil Code provisions on mandate.
Mercantile agency is governed solely by the Civil Code provisions on mandate.
False
An agent in a mercantile context can conclude binding contracts for the principal.
An agent in a mercantile context can conclude binding contracts for the principal.
True
The agency in a commercial context can be performed free of charge if both parties agree.
The agency in a commercial context can be performed free of charge if both parties agree.
False
Article 50 establishes that the acts performed by the agent produce effects only if they are beneficial to the principal.
Article 50 establishes that the acts performed by the agent produce effects only if they are beneficial to the principal.
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The scope of authority of an agent must be clearly defined for their actions to bind the principal.
The scope of authority of an agent must be clearly defined for their actions to bind the principal.
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Mercantile agency does not involve any labor law considerations.
Mercantile agency does not involve any labor law considerations.
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Courts will imply a remuneration obligation in a mercantile relationship even if payment is not expressly mentioned.
Courts will imply a remuneration obligation in a mercantile relationship even if payment is not expressly mentioned.
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A commercial agent can act in their own interest rather than the principal's interest.
A commercial agent can act in their own interest rather than the principal's interest.
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An agent's actions are always valid if the principal lacks legal capacity.
An agent's actions are always valid if the principal lacks legal capacity.
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An agent can delegate their authority without any restrictions under the Commercial Code.
An agent can delegate their authority without any restrictions under the Commercial Code.
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Ratification of an unauthorized act by the principal makes the contract enforceable from the beginning.
Ratification of an unauthorized act by the principal makes the contract enforceable from the beginning.
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Written authority is required for all types of transactions under the law.
Written authority is required for all types of transactions under the law.
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The principal is not liable for the actions of the agent if they were unaware of those actions.
The principal is not liable for the actions of the agent if they were unaware of those actions.
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An agent is under a fiduciary duty to act in the best interest of the principal.
An agent is under a fiduciary duty to act in the best interest of the principal.
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An agent's breach of authority can lead to personal liability for the agent.
An agent's breach of authority can lead to personal liability for the agent.
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Commercial agency is more expansive in purpose compared to civil law mandate.
Commercial agency is more expansive in purpose compared to civil law mandate.
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An agent can sign a sales contract that exceeds their agreed parameters without consequences.
An agent can sign a sales contract that exceeds their agreed parameters without consequences.
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Agency automatically terminates upon the death of either the principal or agent.
Agency automatically terminates upon the death of either the principal or agent.
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Study Notes
Mercantile Agency in Maltese Law (Commercial Code Articles 49-51)
- Mercantile agency, governed by the Commercial Code (lex specialis), is distinguished from civil mandate by its onerous obligatory nature, meaning it cannot be gratuitous. The Commercial Code's specific articles (49-51) combined with Civil Code provisions and the Employment and Industrial Relations Act (EIRA) inform the framework.
Definition and Nature of Commercial Agency
- A commercial agent has the power to promote, manage, or conclude commercial transactions for a principal. Crucially, they habitually engage in commercial activities on behalf of another, unlike a simple mandatary.
- A commercial agency is always remunerated, even if not explicitly stated. Courts will infer an obligation to pay. (Anna Diso vs Francis Zahra 1960)
Scope of Agency and Authority
- Acts within an agent's authority directly bind the principal.
- Key elements: The agent must act within authorized limits, on behalf of the principal, and in the principal's name.
- Exceeding authority renders the contract void unless ratified by the principal. Ratification legitimizes the act retroactively.
- The principal's contractual capacity is pivotal to the agent's actions. If the principal lacks capacity (e.g., underage, interdicted), resulting contracts may be voidable, especially if the agent or third party acted in bad faith.
Agency vs. Mandate
- Commercial agency under the Code is narrower in scope but stronger in effect, enabling contract conclusion. Civil-law mandate can be broader and is often presumed gratuitous.
Formalities and Proof of Authority
- Written authorization isn't always required, but specific transactions (real estate, etc.) may demand written proof, as some commercial contracts need specified legal formality.
- Verbal or tacit authority is sufficient for ordinary commercial acts.
- Written authorization is often needed for legal or extraordinary commercial procedures.
Principle of Delegatus Non Potest Delegare
- Agents mostly cannot delegate their authority without the principal's express consent. This principle stems from similar civil law mandate rules.
Fiduciary Duty (Implied)
- Agents are expected to act diligently in the principal's best interest, avoiding conflicts of interest. This expectation underpins the commercial agent's responsibilities, though not explicitly stated in the cited articles.
Liability
- The principal is bound by the agent's actions within their authority, regardless of profit/loss.
- Agents may bear personal liability for actions exceeding their authority, or concealing pertinent information about their capabilities.
Termination of Authority
- Agency ends by mutual agreement, death of principal/agent, or legal incapacity (though full details aren't found in these specific articles).
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Description
Explore the nuances of mercantile agency as defined under the Maltese Commercial Code Articles 49-51. This quiz delves into the obligations of commercial agents, their remuneration, and the relationship between agents and principals. Enhance your understanding of the legal framework surrounding commercial transactions and agency law.
