Judicial principles and studies
Scope of Agency Execution: Limits on Acts and Preservation/Management Duties
A brief outline of how agency can cover preservation/management acts and an agent's satisfaction of the principal's financial obligations, and the limits regarding a partner's capacity in a general partnership.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
- The study examines the scope of agency authority over acts that may harm the principal or fall between benefit and harm, preservation and management acts performed by the agent for the principal, and the agent's payment of legal debts such as school fees and medical expenses.
Summary
- An agency may empower an agent to conclude acts harmful to the principal and also to perform less risky transactions; preservation and management acts—whether factual or legal—are included within the agent's duties for the principal's benefit. - An agent's payment of a principal's children’s school fees and the principal's wife's medical expenses constitutes satisfaction of debts legally owed by the principal, grounded in an agency by operation of law under Article 123 of the Civil Code and related Personal Status provisions (Articles 190–194 and Article 59); obligations arising directly from law are governed by Article 312 of the Civil Code. - In a general partnership, a partner bears joint and several liability for the partnership's debts under Articles 26 and 27; creditors may sue the company and the partners together, and execution against partners' personal assets is permissible only if company assets prove insufficient. - Nevertheless, the general power of attorney in question was granted for personal representation as a natural person and does not extend to the agent's capacity as a partner in a general partnership; amounts representing wages and taxes owed by the agent's company therefore fall outside the scope of executing that general agency. This is an educational summary only and is not judicial text or legal advice.
Practical significance
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.