BUSAD 120 Chapter Notes - Chapter 7: Mandator, W. M. Keck Observatory
Nahas
BUSAD 120
Business Law
LE
Spring 2018
Chapter 7: Mandate
Mandate:
● Contract between two people, mandatory & mandatary
o Mandator: empowers the mandatary to represent him in dealings with an outside
party
o Mandatary: given power to act on behalf of mandator and to bind the mandator to
the agreement reached between the mandatary and third party
● Two contracts then for:
o Contract between mandator and mandatary (outlining terms of mandate)
o Contract between mandatary and third person
● Example: If I leave the country permanently, I call up my friend Rudy to sell my TV for
$200, and if he succeeds, he will receive a 10% commission. If he agrees to sell it, we
both enter into a contract of mandate, where I become the mandator and he becomes the
mandatary. Rudy then advertises and finds a buyer. Rudy represents me as the
middleman between the buyer and I.
● Mandator is also called The Principle
● Mandatary is also called The Agent
● Mandate is also called Agency
Characteristics of Mandate:
1. Mandate is validly formed when there is consent of both parties or acceptance of
contract; could be express or tacit
a. Express: document was signed in person by both parties
b. Tacit: An example would be that I ask Rudy to sell my TV and instead of
speaking, he picks it up and walks out of my house
2. Remuneration:
a. Gratuitous Title: mandatary expects no payment in return
b. Onerous Title: money will be received for service rendered (i.e. accountant,
lawyer)
3. Scope:
a. The scope could be specific or non-specific
b. Scope can also be implied
i. Example: If I ask Rudy to sell my car, he has the right to use the car to
drive it to meet clients and to take them out for test drives
Obligations of Mandatary Towards Mandator:
1. Prudence & Diligence:
a. Mandatary has duty to act with prudence and diligence in performance of mandate
b. Mandatary must also perform to the best of his abilities
2. Honesty & Faithfulness:
Document Summary
Two contracts then for: contract between mandator and mandatary (outlining terms of mandate, contract between mandatary and third person. Example: if i leave the country permanently, i call up my friend rudy to sell my tv for. , and if he succeeds, he will receive a 10% commission. If he agrees to sell it, we both enter into a contract of mandate, where i become the mandator and he becomes the mandatary. Rudy represents me as the middleman between the buyer and i. Rudy plays both sides and could be unfaithful during this procedure in order to make a gain for himself. Once she buys it, they realize it has no engine and is really only worth ,000, because. Rudy breached his duty as mandatary he cannot annul the contract even though i may have misled him to believe it had an engine.
