Explanation of Article 501
The article clarified that the general rules established in the provisions of contracting by agency, as stated in the first section of this system in articles (87-93), apply to the relationship between the principal and the agent with the third party who contracted with the agent.
According to article (87), agency in contracting can be conventional, judicial, or statutory, and conventional agency includes representation.
The application of the provisions of contracting by agency to the relationship between the principal and the agent with the third party does not affect the relationship between the principal and the agent; the provisions of agency apply to their relationship.
Related To
Article 501
The provisions governing contracting by agency provided for in this Law shall apply to the relationship of the principal and the agent with a third party dealing with such agent.