Knowledge Base
Describe the processes and legal implications of acting as an agent and intervening as a mandate holder
What is the legal consequence if a third party has dealt with an agent without knowledge of the revocation of the mandate?
Under Article 2005 of the Civil Code, revocation notified only to the agent cannot be invoked against third parties who dealt in ignorance of the revocation. This protects third parties acting in good faith and allows the principal to seek recourse against the agent if necessary to cover any losses.
What is the agent's primary obligation under Article 1991 of the Civil Code?
The obligation to execute the mandate requires the agent to carry out the mission entrusted to them for as long as they remain in charge. This obligation includes liability for damages resulting from non-performance, which underscores the importance of diligence and prudence in managing the principal's affairs.
Under Article 1989 of the Civil Code, may the agent perform actions not provided for in the mandate?
Article 1989 of the Civil Code establishes the principle that the agent may not do anything beyond what is specified in the mandate. This means that any action not expressly authorized is prohibited and could engage the agent's liability in the event of harm to the principal.
Under Article 1984 of the Civil Code, a mandate is formed by:
Article 1984 of the Civil Code defines the mandate as the act by which one person gives another the power to do something on their behalf and in their name, specifying that the contract is formed solely by the agent's acceptance. This means that the principal cannot unilaterally impose a mandate; it requires the agent's express agreement to be valid.
The management fee remains due on a pro rata temporis basis even after the termination of a portfolio management mandate.
Under Article 314-61 of the AMF General Regulation, the management fee remains due on a pro rata temporis basis after termination. This means that the principal must pay for the period during which services were rendered up to the effective date of termination.
The agent may carry out leveraged transactions without the principal's express consent within a portfolio management mandate.
Under Article 314-60 of the AMF General Regulation, the principal's express and specific consent is required for leveraged transactions, meaning that the agent cannot carry them out without this specific authorization. This protects the principal against excessive financial risks.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Principal's obligations
Agent's obligations
The reciprocal obligations of the principal and the agent are defined in Articles 1991 to 2002 of the Civil Code. The principal must fulfill the commitments entered into by the agent and reimburse expenses incurred, while the agent must execute the mandate, report on their management, and act with loyalty and diligence.
Agent's duty of loyalty
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The duty of loyalty, established through case law, prohibits the agent from placing themselves in a situation of conflict of interest or deriving personal profit from their mission. This ensures that the agent always acts in the principal's exclusive interest, without seeking personal advantage.