Article 1905

RA 386 · Civil Code of the Philippines

ELI5— what this means for you

A sales agent can't sell on credit without the seller's permission — if they do it anyway, the seller can demand cash payment, though the agent still keeps any interest or profit the credit sale generated.

Official text — RA 386

The commission agent cannot, without the express or implied consent of the principal, sell on credit. Should he do so, the principal may demand from him payment in cash, but the commission agent shall be entitled to any interest or benefit, which may result from such sale. (n)

Source: lawphil.net (RA 386 as amended)

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