Short answer. Yes. Under Article 1906 of the Civil Code, when a commission agent sells on credit with the principal's authority, the agent must inform the principal of the sale and provide the names of the buyers. If the agent fails to do so, the sale is deemed to have been made for cash as far as the principal is concerned.
What the law says
Should the commission agent, with authority of the principal, sell on credit, he shall so inform the principal, with a statement of the names of the buyers. Should he fail to do so, the sale shall be deemed to have been made for cash insofar as the principal is concerned.
Civil Code, Article 1906 — Authorized Credit Sale. Read the full provision →
The disclosure duty when selling on credit
Article 1906 imposes a specific information duty on the commission agent: if you authorized your agent to sell on credit, the agent must do two things — inform you that a credit sale took place and provide the names of the buyers. The reporting is not optional or informal. The agent must actively notify you and identify who bought on credit. This duty exists precisely because credit sales create collection risk, and the principal needs to know who the debtors are in order to monitor and eventually collect what is owed.
What happens when the agent stays silent
If the agent fails to disclose the credit sale and the buyers' names, the statute provides a clear consequence: "the sale shall be deemed to have been made for cash insofar as the principal is concerned." In practical terms, this means the agent owes you the proceeds immediately, as if the buyer had paid in cash at the time of the sale. The agent cannot claim the buyer has not yet paid as a reason to withhold remittance. The fiction of a cash sale is imposed as a penalty for the agent's failure to disclose — you are protected from the effects of undisclosed credit terms.
Why the buyers' names specifically
The requirement to name the buyers is not a formality. As the principal, you need to know who owes money from transactions carried out on your behalf. If the agent simply says "sold on credit" without identifying the buyer, you have no way to monitor whether the credit will be collected, follow up with the debtor, or take action if the buyer defaults. You also cannot independently verify the terms of the credit sale. Naming the buyers gives you visibility into the transactions your agent is conducting on your account and the ability to act if collection becomes necessary.
Relationship to the guarantee commission rule
The duty to disclose and name buyers under Article 1906 is separate from the question of who bears the collection risk. Under the general rule, when the agent sells on credit with your authority and properly discloses the transaction and the buyers, the collection risk remains yours as the principal. The agent has fulfilled the obligation by identifying the debtors; they are not personally liable if those debtors fail to pay. This changes only if the agent has agreed to receive a guarantee commission — in that case, separate rules govern. Article 1906 operates at the level of disclosure and reporting; the risk allocation for default is a different layer of the same commission agency relationship.