Explanation of Article 496
The article addresses another application of the agent's obligation in sales not to exceed the limits of the agency and to exercise due diligence;
The first paragraph clarifies that the agent is not permitted to sell the principal's property for a deferred price unless explicitly or implicitly authorized to do so. For instance, if a person is appointed to sell a car without specifying whether the sale is immediate or deferred, the agent may only sell it immediately unless the principal permits a deferred sale, whether the permission is explicit or implicit. Implicit permission may be inferred if the agent is known to only engage in deferred sales, or if it is customary for such property to be sold only on a deferred basis.
If the agent is restricted to selling on a deferred basis, they may sell immediately if it is at the same price, as this is in the principal's interest, in accordance with Article (486): "An agent's action that is more beneficial to the principal is not considered exceeding the limits of the agency unless the principal has a specific purpose in defining the agency."
The second paragraph clarifies that the agent, in deferred sales, may take a mortgage or guarantor from the buyer even if not authorized by the principal, as this is in the principal's interest and provides assurance and security for the deferred price. This is an action that is more beneficial to the principal, in accordance with Article (486).
Related To
Article 496
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The agent may not sell the principal’s property for a deferred payment, except with an explicit or implicit authorization.
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If the agent sells a property for a deferred payment, he may demand a pledge or surety from the buyer against the deferred payment, even if the principal did not authorize him to make such demand.