Explanation of Article 488
After Articles (487) and (488) clarified the agent's obligation not to exceed the limits of his agency and to exercise due diligence in its execution, this article comes to clarify the limits of what the agent can do in the case of multiple agents and the scope of his responsibility for the other agents.
The first paragraph clarified that if there are multiple agents and each has an independent agency contract, then each has the right to act independently in what he was appointed for unless the principal stipulates otherwise. If each agent was appointed to sell or buy, and each has an independent agency contract, then each of them can act in selling and buying without referring to the other agents. This is due to the presumption of the principal's intention for each to act independently by making each agent in an independent contract. This presumption is nullified if the principal explicitly states otherwise, requiring the agents not to act independently; thus, none of them can act alone without the others.
The second paragraph clarified that if there are multiple agents appointed in a single contract without the principal allowing any of them to act independently, they must act collectively unless the principal explicitly permits any of them to act independently. If they are appointed to sell, buy, or lease, the action must be issued by all of them after they all agree on it. If the action is issued by one of them without referring to the others, it is invalid due to the lack of authority in that; because the authority is only valid when they are together. The appointment of all agents in a single contract is a presumption indicating the principal's intention for the agents to work collectively.
The third paragraph came to clarify the responsibility of the agents when they are multiple; the principle is that each agent is responsible for his actions and what he issues, and they are not jointly responsible except in only two cases:
The first case: If the agency is indivisible, such as when a person appoints two agents together to sell a specific house, it is inconceivable for each agent to sell independently, thus they are jointly responsible for executing the agency.
The second case: If the damage to the principal results from a joint error between the agents, such as when a person appoints several agents to purchase goods, and they purchase defective goods due to not exercising the required diligence; in this case, they are jointly responsible for the error occurring among them.
Even if the agents are jointly responsible as in the previous two cases, they are not responsible for what one of them does exceeding the limits of the agency, such as when a person appoints agents to sell a property for an immediate price, and one of them sells it for a deferred price. They are also not jointly responsible for what one of them does if he was abusive in executing the agency, such as when a person appoints agents to sell a property without specifying whether the price is immediate or deferred, and one of them sells it for a deferred price while it could have been sold immediately, thereby considering the buyer's interest over the principal's interest.
Related To
Article 488
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If there are multiple agents and each agent is appointed pursuant to a separate contract, each agent may act unilaterally on the matter for which he is appointed, unless the principal stipulates that they do not act unilaterally.
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If there are multiple agents and they are all appointed pursuant to a single contract but are not authorized by the principal to act unilaterally, they shall act jointly.
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Multiple agents shall be jointly and severally liable if the power of attorney is indivisible, or if the harm sustained by the principal is the result of their common fault. Said agents shall not, even if they are jointly and severally liable, be liable for any act of an agent who exceeds the limits of his power of attorney or who acts arbitrarily in the performance thereof.