Practice question
A foreign principal directly takes over the entrusted transaction and concludes a genuinely new separate post-expiry agreement with the worker, without proved recruiter participation. The issue is whether this conduct may revoke the relevant agency under the rule applied in Sunace, apart from any surviving statutory liabilities. Which is correct?
- Article1924’s direct-management revocation principle is relevant
- Direct takeover can never affect agency
- The worker automatically becomes the recruiter’s corporate director
- Revocation automatically erases every debt already accrued under the original contract
- The principal’s later signature conclusively proves the recruiter signed too
Legal references
- Sunace v NLRC GR161757 January25,2006 MAIN: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/40781 Evidence of knowledge and consent; direction of imputation; new post-expiry contract.
- Civil Code: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Article1924.
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