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LAW OF OBLIGATIONS
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instruction has been executed without naming another person as buyer or
seller, the presumption is that he himself has assumed the obligations of
the buyer or seller.
Pursuant to Article 545 of the TCO, the commission agent is not
permitted to act as buyer or seller if the principal has withdrawn his
instruction. However, this provision shall not apply if the notice of
execution was dispatched before the notice of withdrawal reached the
commission agent.
Conclusion
A buying or selling commission contract is regulated under Articles
532-545 of the TCO and is defined as a contract where the commission
agent undertakes to buy or sell negotiable instruments and movables in
his name and for the account of another, the principal, in return for a fee.
The duties of the commission agent may be listed as: (i) to notify
the principle, (ii) to insure the goods on commission in case the principle
gives instructions; (iii) to take care of the goods on commission; (iv) to
comply with the principle’s instructions with respect to the price; (v) to
avoid selling goods on credit or paying in advance without receiving the
goods; and (vi) liability for the debtor’s nonpayment or nonperformance
of other obligations where the commission agent explicitly gives warranty
or the commercial customs at the place of business require so.
The rights of the commission agent are: (i) to claim the money paid
and expenses incurred; (ii) to claim a commission fee; (iii) the right of
lien; (iv) to arrange the sale of the goods at auction; and (v) to make
transactions with himself.