BlogContracts & TransactionsLegal ResourcesMandate Contract

April 29, 20210

The mandate is a contract whereby one party (the mandatory) binds himself to accomplish one or more legal transactions for the account of the other party (the principal).

How are the actions performed in the mandate contract?


In the mandate contract, the mandatory always acts on his behalf. He is in the position of an intermediary between the principal and a third person. The third person has no legal connection with the principal, even if he is aware that the service is being performed on behalf of the principal.


What are the actions involved?


The mandate includes all the actions provided in the contract. It recognizes the mandatory’s right to perform other ancillary actions that he deems necessary to fulfill the main mandate. These ancillary actions must be necessary to fulfill the object of the contract. The mandatory is obliged to prove their necessity.


What is the remuneration?


The mandate contract is always provided with remuneration, even if the parties do not explicitly stipulate the value in the contract. In case the remuneration is not expressly determined by the parties to the agreement, it will be considered determinable and will be calculated based on the relevant tariffs or commercial customs of the country where the contract was concluded and in their absence will be determined by the court.


What are the types of mandate?


If the principal appoints a new mandatory to perform the same service, the new contract cancels the first mandate from the date of notification of the appointment of another person. When several persons are charged together as mandatories, all are obliged to perform the same service. They must be recognized as such in the same joint act. Consequently, the action performed by one of them will be considered as performed by all. The withdrawal of the mandate from one of the mandatories has no legal effect without it being done by all the others.


Can the mandate be revoked? 


The right of revocation is recognized to both parties. It can be exercised when done for a just cause or a legitimate reason. Only in this case the parties are not responsible for compensating the damage to each other. When the revocation does not come from reasonable causes, the party which withdraws will only be liable for damages arising from the revocation of the property. The parties have the right to withdraw from the mandate contract of indefinite duration, provided that they give prior notice to each other within an appropriate time.


How is the mandate contract extinguished? 


The mandate is extinguished by the death, legal incapacity or bankruptcy of the principal or the mandatory, except on contrary agreement, or when it results differently from the nature of the present circumstances. In the case when the extinguishment of the mandate might infringe the interests of the principal, the mandatory, the heirs or the representatives are obliged to keep on running the administration until the principal, his heirs or representatives are able to deal with the matter directly.

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