(a) X appoints Y as his agent to sell his products in
(b) A granted B the exclusive right to sell his brand of Maong pants in Isabela, the price for his merchandise payable within 60 days from delivery, and promising B a commission of 20% on all sales. After the delivery of the merchandise to B but before he could sell any of them, B's store in Isabela was completely burned without his fault, together with all of A's pants. Must B pay A for his lost pants? Why? (5%)
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(a) Yes,Y can appoint a sub-agent.
Under the law, an agent can appoint a sub-agent provided that the principal does not prohibit the agent to appoint a sub-agent.
The appointment of sub-agent Y binds the principal X to whatever acts done by the sub-agent provided that he acted within the authority conferred by the principal.
(b)
B must pay for the lost pants. The contract is not an agency to sell but a contract of sale.
Under the premise, the merchandise is payable by B for 60 days from delivery. Hence, regardless whether the pants are sold or not, B is still liable for the payment. Under the law, when the object of sale is delivered to the vendee, he is responsible for the lost of the object, hence, B must be liable for the lost pants.
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