Mandate is a contract whereby a mandatary binds himself to perform a judicial act on behalf of a mandator.
I: Elements of Mandate Article 717
For a mandate to be valid, a mandator must be legally qualified to perform the acts act in respect of which the mandate is given.
Article 718
A mandate must be executed in the same form as that required for the execution of the legal act in respect of which the mandate is given.
Article 719
A mandate given in general terms, which does not specify the nature of the legal act in respect of which it is given, only confers on the mandatary the power to perform acts of management.
Granting of leases of not more than three years duration, acts of preservation and of maintenance, the recovery of rights and discharge of debts, as well as any disposition required by management are deemed acts of management.
Article 720
A mandate only confers on the mandatary a power to act in matters specified therein and in matters necessarily incidental thereto in accordance with the nature of each matter and prevailing custom.
Article 721
1. A special mandate, in respect of any act which is not an act of management, is required, and in particular for a sale, a mortgage, an admission, arbitration, the tendering of an oath and representation before the Courts.
2. A special mandate to carry out a certain category of legal acts is valid, save as regards gratuitous acts, even though the object of such acts is not specified.
II: Effects of Mandate (A) Obligations of the Mandatary
Article 722
1. The mandatary is bound to perform the mandate without exceeding the limits fixed therein.
2. He may, however, exceed these limits if he finds himself unable to notify the mandator thereof beforehand and if the circumstances are
such that it can be assumed that the mandator could not have failed to approve the act. In such a case, the mandatary is bound to inform the mandator immediately that he has exceeded the limits of the mandate.
Article 723
1. If the mandate is gratuitous, the mandatory must exercise in its performance the degree of care that he gives to his own affairs, without, however, being bound to exercise more diligence than that shown by a normal person.
2. If the mandate is given for remuneration, the mandatary must always exercise in its performance the diligence of a normal person.
Article 724
The mandatory shall give to his mandator all necessary information in connection with the execution of his mandate and render him an account thereof unless the agreement or the nature of the transaction otherwise requires.
Article 725
The mandatary may not use the property of the mandator for his own benefit without permission, otherwise he shall be liable to pay the mandator a fair compensation to be determined by the judge taking into account the requirements of justice and circumstances.
Article 726
1. When several mandataries are appointed by a separate contract, each of them shall be empowered to act unless the mandator requires him to act jointly with the others.
2. When they are appointed by the same contract without one of them being authorized to act on his own, they must act jointly except in cases where an exchange of views is not essential.
Article 727
1. When several mandataries are appointed, they are jointly and severally liable if the mandate is indivisible or if the damage sustained by the mandator is the result of their common fault.
2. Mandataries, however, even if joint and several, are not responsible for the acts done by one of their co-mandataries in excess of the limits of the mandate or by a wrongful use of the mandate.
Article 728
1. A mandatary who nominates a substitute to perform his mandate without being authorized to do so, is responsible for the acts of the substitute as if they were his own acts: in such a case, the mandatary and his substitute are jointly and severally responsible.
2. When a mandatary is authorized to appoint a substitute without specifying the person, he is only liable for a faulty choice of the substitute or for faulty instructions that he gives to him.
3. In the two preceding cases, the mandator and the substitute of the mandatary have a direct right of action against each other
(B) Obligations of the Mandator Article 729
1. A mandate is deemed to be gratuitous in the absence of agreement which may be express or result by implication from the position of the mandatary.
2. When the remuneration is agreed, it is still subject to the assessment of the judge, unless it has been voluntarily paid after the performance of the mandate.
Article 730
1. Whatever result the mandatary may have achieved in the performance of the mandate, the mandator must repay to the mandatary any expenses incurred by him for the normal performance of the mandate with interest from the date when such expenses were incurred.
2. When the performance of the mandate requires the mandator to supply to the mandatary sums of money for expenditure in respect of
the mandate, the mandator must advance such amounts, if requested by the mandatary so to do.
Article 731
The mandator is responsible for injury sustained by the mandatary, without fault on his part, in the normal performance of the mandate.
Article 732
When several persons appoint a sole mandatary for a common purpose, they are, in the absence of agreement to the contrary, jointly and severally liable to the mandatary as regards the consequences of the performance of the mandate.
Article 733
Articles (83) to (87), with regard to representation, apply to the relationship of a mandator and of a mandatary with third parties dealing with the mandatary.
III: Termination of Mandate Article 734
The mandate will terminate by the completion of the act delegated therein, expiry of the term thereof, or upon the death of the mandator or the mandatary, except if it is decided that the mandate is granted for the interest of the mandatary or a third party, or if it is required to be consummated after the mandator’s death.
Article 735
1. The mandator may, at any time and notwithstanding any agreement to the contrary, remove the mandatary or restrict the mandate.
2. When, however, the mandator has been given in the interests of a mandatary or of a third party, the mandator is not entitled to revoke or restrict the mandate without the consent of the person in whose interest the mandate was granted.
3. In any case, the mandator shall indemnify the mandatary for any damage suffered by the latter as a result of his removal at an inopportune time or without a justifiable excuse.
Article 736
1. The mandatary may, at any time and notwithstanding an agreement to the contrary, renounce his mandate even though there is agreement to the contrary. In this case, the mandatary must indemnify the mandator for the damage resulting from the renunciation at an inopportune time or without an acceptable excuse.
2. However, the mandatary shall not have the right to renounce a mandate given in the interests of a third party, unless there are serious reasons justifying such renunciation and unless he notifies the third party and gives him enough time to take such action as may be necessary to safeguard his interests.
Article 737
1. The mandatary is bound, irrespective of the manner in which the mandate is terminated, to carry through any work he has commenced to such a condition that it is not exposed to deterioration.
2. When the mandate is extinguished by the death of the mandatary, his heirs, if they have the necessary legal capacity and knowledge of the mandate, are bound to inform the mandator immediately of the death of the mandatary and to take such steps as circumstances demand in the mandator's interests.
Chapter III: Deposit