Explanation of Article 89
This article addresses the concept of "rejection," which is: the principal's disapproval of the contract concluded by the agent without authorization, or by exceeding the limits of his agency. The article stipulates that rejection can be through "any act or statement indicating dissatisfaction," meaning that the rejection must be clear and decisive, without any ambiguity or hesitation. For example, if the principal becomes aware of the contract concluded by the agent without authorization and objects to it, this is considered an explicit rejection.
It should be noted that the rejection must be "subsequent" to the conclusion of the contract; it cannot be prior to it, nor can it be conditional or unknown.
Rejection results in the "nullification of the contract," so it does not produce any legal effect, and the agent becomes responsible for the contract.
This article is considered one of the most important articles related to rejection, as it protects the rights of the principal and provides him with the opportunity to reject the contract if it is harmful to him, or to approve it if it is beneficial to him.
Related To
Article 89
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If a contract is concluded by an agent, the person of the agent shall be considered with regard to defects of consent and with regard to the effect that the knowledge of matters or lack thereof would have on the status of the contract.
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If the agency is by agreement and the principal gives the agent specific instructions to conclude a contract, the principal may not invoke the ignorance of his agent regarding matters the knowledge or ignorance of which affects the contract if the principal knows or should have known such matters.