Article 1907

RA 386 · Civil Code of the Philippines

ELI5— what this means for you

If a sales agent charges an extra "guarantee commission" on top of their normal commission, they take on the risk that the buyer might not pay — meaning they must still pay the seller as if the buyer had paid in full.

Official text — RA 386

Should the commission agent receive on a sale, in addition to the ordinary commission, another called a guarantee commission, he shall bear the risk of collection and shall pay the principal the proceeds of the sale on the same terms agreed upon with the purchaser. (n)

Source: lawphil.net (RA 386 as amended)

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