Section III Mandate

1. The Elements of Mandate

Article 699

Mandate is a contract whereby a mandatary binds himself to perform a judicial act on behalf of a mandator.

Article 700

In the absence of any provision of the law to the contrary, a mandate must be executed in the same form as that required for the execution of the juridical act in respect of which the mandate is given.

Article 701

A mandate given in general terms, which does not specify the nature of the juridical 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, are deemed to be acts of management. All acts of disposition necessary for management, as the sale of perishable crops, goods or movables, and the purchase of things necessary for the preservation and exploitation of the thing constituting the object of the mandate are deemed to be acts of management.

Article 702

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, a gift, a compromise, an admission, an arbitration, the tendering of an oath and representation before the courts.

A special mandate to carry out a certain category of juridical acts is valid, save as regards gratuitous acts, even though the object of such acts is not specified.

A special 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.

2. The Effects of a Mandate

Article 703

The mandatary is bound to perform the mandate without exceeding the limits fixed therein.

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 mandate.

Article 704

If the mandate is gratuitous, the mandatary 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 a reasonable man.

When the mandate is given for remuneration, the mandatary must always exercise in its performance the diligence of a reasonable man.

Article 705

A mandatary is bound to give to his mandator all necessary information in connection with the execution of his mandate and render him an account thereof.

Article 706

The mandatary may not use the property of the mandator for his own benefit.

He is liable for interest on sums used by him for his own benefit from the moment when he commences to use them. He is also liable for interest on sums that he owes the mandator from the time when he is served with a formal summons.

Article 707

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. Mandataries, however, even if joint and several, are not responsible for the acts done by their co-mandataries in excess of the limits of the mandate or by a wrongful use of the mandate.

When several mandataries are appointed by the same document without being authorized to act severally, they must act jointly except in cases where an exchange of views is not essential, such as receiving a payment or paying a debt.

Article 708

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.

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.

In the two preceding cases, the mandator and the substitute of the mandatary have a direct right of action against each other.

Article 709

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.

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 710

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. 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 711

The mandator is responsible for injury sustained by the mandatary, without fault on his part, in the normal performance of the mandate.

Article 712

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 713

Articles 104 to 107, with regard to representation, apply to the relationship of a mandator and of a mandatary with third parties dealing with the mandatary.

The End of a Mandate

Article 714

The mandate comes to an end by the completion of the work or by the expiration of the period for which it was given and by the death of the mandator or of the mandatary.

Article 715

The mandator may, at any time and notwithstanding any agreement to the contrary, revoke or restrict the mandate. When, however, the mandate is remunerated, the mandator must indemnify the mandatary for loss sustained by him as a result of an intempestive or unjustified revocation.

When, however, the mandate 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.

Article 716

The mandatary may, at any time and notwithstanding an agreement to the contrary, renounce his mandate. Renunciation is effected by notification to the mandator. When the mandate is remunerated, the mandatary must indemnify the mandator for loss sustained by him as a result of his renunciation, if it is intempestive or unjustified.

The mandatary, however, has not 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 time to take such action as may be necessary to safeguard his interests.

Article 717

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.

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.