Mandate and Representation – Relations between the mandatary and third persons
Art. 3016. Disclosed mandate and principal. A mandatary who contracts in the name of the principal within the limits of his authority does not bind himself personally for the performance of the contract.
Revision Comments – 1997. (b) This provision applies when the mandatary discloses both his status as a mandatary and the identity of the principal. Thus, when a mandatary enters into a contract with a third person in the name of the principal and within the limits of his authority, the contract binds the principal to the third person and the third person to the principal. In effect obligor and obligee are the principal and the third person. The mandatary does not bind himself personally to the third person for the performance of the contract.
(c) A mandatary who enters into a contract with a third person in the name of the principal and expressly promises the performance of the contract binds himself personally for that performance. See C.C. arts. 1977 and 1983 (Rev. 1984).
Art. 3017. Undisclosed mandate. A mandatary who contracts in his own name without disclosing his status as a mandatary binds himself personally for the performance of the contract.
Art. 3018. Disclosed mandate; undisclosed principal. A mandatary who enters into a contract and discloses his status as a mandatary, though not his principal, binds himself personally for the performance of the contract. The mandatary ceases to be bound when the principal is disclosed.
Revision Comments-1997. Under this Article, a mandatary who discloses the mandate but fails to disclose the principal binds himself personally for the performance of the contracts he has made with third persons. However, the mandatary ceases to be so bound when the principal is disclosed. In such a case, the mandatary incurs the same obligations to third persons as a mandatary who acts in the name of and on behalf of the principal. See Civil Code Article 3016 (Rev. 1997), supra.
Art. 3019. Liability when authority is exceeded. A mandatary who exceeds his authority is personally bound to the third person with whom he contracts, unless that person knew at the time the contract was made that the mandatary had exceeded his authority or unless the principal ratifies the contract.
