Explanation of Article 356
The article addresses the ruling on the purchase by the agent, intermediary, expert, and those in similar positions for themselves of what they were entrusted to sell or appraise its value: The agent is anyone who acts on behalf of another in contracting, whether the agency is statutory, like a father for his minor son, contractual like an agent, or judicial like a guardian appointed by the court and a judicial custodian. The intermediary is anyone who mediates in the sale of something, and the sale is conducted based on their mediation, and anyone in a similar position who performs mediation work, whether called an intermediary, broker, or otherwise. The expert is anyone entrusted with appraising the value of something for sale, whether engaged by the seller, buyer, or court, like a real estate appraiser, vehicle accident appraiser, and anyone in a similar position entrusted with appraising the value of something, whether called an expert, appraiser, valuer, or otherwise. The article clarifies that these individuals are not allowed to purchase for themselves the assets they were entrusted to sell or appraise, whether the purchase is made in their names or using the names of others, known as "alias," which is a form of simulation, whether the purchase is made directly or through auction, and whether the purchase is at market price, higher, or lower, unless they are authorized to purchase for themselves; and the authorization may be from the principal himself, by statutory provision, or by court permission; if there is no authorization, none of these individuals may purchase for themselves; because purchasing for themselves involves a conflict of their personal interests as a buyer with the interest they are supposed to consider in view of the work entrusted to them. The penalty for the agent, intermediary, or expert violating what the article stipulates is explained in the following article (357). What the article includes is an application of the ruling established in the general rule stated in article (93) prohibiting the agent from contracting with himself by virtue of his agency if he is not authorized to do so.
Related To
Article 356
Subject to legal provisions, an agent may not purchase for himself anything that he is entrusted to sell in his capacity as an agent, whether in his own name or in the name of another person, even by way of auction, unless he is authorized to do so, nor may a broker or expert, or a person of a similar capacity, do the same with the property they are entrusted to sell or valuate.