298 / 516
activity, plus interest.
2) Principal shall release the agent from liability for all obliga-
tions assumed.
3) Principal shall compensate the agent for any damage incurred
as a result of carrying out their activity.
Article 529 of TCO shall apply to the agent if the agent acted with
all due care while carrying out their activity, even if the intended out-
come was not achieved.
Where the agent’s expenses are not reimbursed, he has the right of
claim in accordance with the provisions governing unjust enrichment.
Business Conducted in the Agent’s Interest
Article 530 regulates the principal’s rights and obligations where
the agent carried out activities for his own interest.
Where an agent’s activities were not carried out with the best inter-
ests of the principal in mind, the principle is nonetheless entitled to
appropriate the resulting benefits; however the principal is obliged to
compensate the agent and release him from obligations assumed to the
extent the principal is enriched.
Approval of Agency Activities
Where the agent’s actions are approved by the principal after the
agent acted without the authority of the principal, the provisions
governing agency become applicable pursuant to Article 531.
Conclusion
Articles 526-531 regulate agency without authority; or situations
where an agent willfully conducts business and enters into commit-
ments on behalf of another person (the principal) without their author-
ity. The agent and the principal shall have rights and obligations as a
result of the conducting of agency without authority.
The agent is obliged to carry out activities in the best interest of the
principal and the principal’s assumed will, and the agent is liable for
negligence. If the agent acted in order to avert damage or imminent
284
NEWSLETTER 2012