Mandate and Representation – Termination of the mandate and of the authority of the mandatary

Mandate and Representation – Termination of the mandate and of the authority of the mandatary

Art. 3024. Termination of the mandate and of the mandatary’s authority. In addition to causes of termination of contracts under the Titles governing “Obligations in General” and “Conventional Obligations or Contracts”, both the mandate and the authority of the mandatary terminate upon the:

(1)Death of the principal or of the mandatary.

(2)Interdiction of the mandatary.

(3) Qualification of the curator after the interdiction of the principal.

Art. 3025. Termination by principal. The principal may terminate the mandate and the authority of the mandatary at any time. A mandate in the interest of the principal, and also of the mandatary or of a third party, may be irrevocable, if the parties so agree, for as long as the object of the contract may require.

Art. 3026. Incapacity of the principal. In the absence of contrary agreement, neither the contract nor the authority of the mandatary is terminated by the principal’s incapacity, disability, or other condition that makes an express revocation of the mandate impossible or impractical.

Art. 3027. Reliance on public records. Until filed for recordation, a revocation or modification of a recorded mandate is ineffective as to the persons entitled to rely upon the public records.

Revision Comments – 1997. (c) In Louisiana, the public records doctrine is negative. Parties are entitled to rely on the absence in the public records of documents which according to law must be recorded. The source provision creates the mistaken impression that the public records doctrine has an affirmative function and that a third person may rely on the presence of a recorded mandate. It is implicit in Civil Code Article 3027 (Rev. 1997) that:

(a) the reference is to a mandate which according to law must be recorded in order to have effect toward third persons and

(b) a notice of termination of such a mandate must be placed in the public records. Art. 3028. Rights of third persons without notice of revocation. The principal must notify third persons with whom the mandatary was authorized to contract of the revocation of the mandate or of the mandatary’s authority. If the principal fails to do so, he is bound to perform the obligations that the mandatary has undertaken.

Art. 3029. Termination by the mandatary. The mandate and the authority of the mandatary terminate when the mandatary notifies the principal of his resignation or renunciation of his authority. -when a mandatary has reasonable grounds to believe that the principal lacks capacity, the termination is effective only when the mandatary notifies another mandatary or a designated successor mandatary. In the absence of another mandatary or a designated successor mandatary, the termination is effective when the mandatary notifies a person with a sufficient interest in the welfare of the principal.

Revision Comments – 1997. (b) The mandatary is bound to give notice of termination in accordance with Civil Code article 2024 (Rev. 1984). This provision is applicable even if a mandate is given for a specified period of time.

(c) If the termination of a mandate for remuneration causes injury to the principal, the liability of the mandatary is governed by the Titles of “Obligations in General” and “Conventional Obligations or Contracts.” In the case of a gratuitous mandate, the court may reduce the amount of loss for which the mandatary is liable. See Civil Code Articles 2990 and 3002 (Rev. 1997), supra.

Comment- 2014. The duty of the mandatary to notify someone other than the principal when the mandatary believes the principal lacks capacity does not impose a duty on the person notified to accept any responsibility or take any action. The mandatary remains responsible for the consequences of his failure to fulfill the mandate until proper notice is given.

Art. 3030. Acts of the mandatary after principal’s death. The mandatary is bound to complete an undertaking he had commenced at the time of the principal’s death if delay would cause injury.

Art. 3031. Contracts made after termination of the mandate or the man­datary’s authority. If the mandatary does not know that the mandate or his authority has terminated and enters into a contract with a third person who is in good faith, the contract is enforceable.

Art. 3032. Obligation to account. Upon termination of the mandate, unless this obligation has been expressly dispensed with, the mandatary is bound to account for his performance to the principal.