Text of the provision
Art. 1912. The principal must advance to the agent, should the latter so request, the sums necessary for the execution of the agency. Should the agent have advanced them, the principal must reimburse him therefor, even if the business or undertaking was not successful, provided the agent is free from all fault. The reimbursement shall include interest on the sums advanced, from the day on which the advance was made.
(1728)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
The principal must advance funds on request and reimburse the agent (with interest) for advances — even if the venture failed, provided the agent was without fault.
Questions about this provision
Related provisions
- Article 1911 — Principal Solidarily Liable for Apparent Authority.
- Article 1913 — Indemnifying the Agent.
Cases citing this article
- BP Oil and Chemicals International Philippines, Inc. vs. Total Distribution & Logistic Systems, Inc, G.R. No. 214406, February 6, 2017 — read the decision on LawPhil →
- Pacsports Phils., Inc. vs. Niccolo Sports, Inc, G.R. No. 141602, November 22, 2001 — read the decision on LawPhil →
- Gregorio V. Tongko vs. The Manufacturers Life Insurance Co. (Phils.) Inc. and Renato A. Vergel De Dios, G.R. No. 167622, June 29, 2010 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.