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damage to the principal, his liability is judged more leniently; where-
as, if the agent’s activities are prohibited expressly or otherwise recog-
nizably by the principle, then the agent’s liability is increased.
Where the agent conducts activity in the interest of the principal,
the principal is obliged: i) to reimburse the agent for all expenses that
were necessary or useful and appropriate in conducting his activity,
plus interest; ii) release the agent from all obligations assumed; and iii)
compensate the agent for any damage incurred as a result of the
conduct of his activity. Where the business is conducted in the agent’s
own interest, the principal is entitled to appropriate any resulting ben-
efit, and the principal is obliged to compensate the agent and release
him from obligations assumed to the extent the principal is enriched.
On the other hand, if the principal approves the agent’s actions, the
provisions governing agency in Article 531 of the TCO become applic-
able.
LAW OF OBLIGATIONS
285