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Representation without Authority
According to article 46 of TCO, in case a person issues a legal pro-
ceeding without an authorization, then the principal may only be bond
with this proceeding if he gives his approval.
The other party, with whom the unauthorized representative pro-
ceeds, may request from the principal to inform within an appropriate
time whether he will give approval or not. If the proceeding is not
approved within such time, then other party gets free from being bond
with such proceeding.
Article 47 of TCO, regulates that if the principal does not give
approval expressly or implicitly, the indemnification of such damage
arising from null proceeding may be requested from the unauthorized
representative. However, in case the unauthorized representative
proves that the other party knows his unauthorized representation then
the indemnification of such damage may not be claimed from him.
Indemnification of other damages may also be claimed from unau-
thorized representative with fault, on an equitable basis.
In Conclusion
The TCO articles 40 and following stipulate representation provi-
sions under two sections as
“authorized representation”
and
“repre-
sentation without authority”
.
The consequences of a legal proceeding issued in the name and on
behalf of principal by an authorized representative shall directly bind
the principal. If the representation is raised from a legal proceeding,
then the content and degree of the representation authority shall be
determined pursuant to such legal proceeding. If the representation
authority is notified to the third parties, then the content and degree of
the representation authority shall be determined in accordance with
this notification. The principal may always limit or cancel the repre-
sentation authority arising from legal proceeding.
In case a person issues a legal proceeding without an authorization,
then the principal may only be bond with this proceeding if he gives
his approval. If the principal does not give approval expressly or
implicitly, the indemnification of such damage arising from null pro-
ceeding may be requested from the unauthorized representative.
LAW OF OBLIGATIONS
259