III. Adaptation of Foreign Laws to the Philippine law

Adapting the Factors Act into Philippine civil law as a supplementary law will not contravene any of existing laws. The purpose of its adaptation is to enhance rights and obligations as well as to harmonize the law on sales and the law that covers the agent’s scope of authority to sell a motor vehicle. The Factors Act will harmonize itself into the law as an exception to the general rule.

Article 1505 of the New Civil Code states:

Art. 1505. Subject to the provisions of this Title, where goods are sold by a person who is not the owner thereof, and who does not sell them under authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, …show more content…
Under the Factors Act, a mercantile agent “shall mean a mercantile agent having in the customary course of his business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods.”

The proposal of the author, however, is not to limit the coverage of the presumption of authority to sell only to a mercantile agent as defined in the Factors Act. Instead, the authority to sell shall include persons who have expressed, implied or written authority to sell the property of the owner, despite not being an agent under the context of the law on …show more content…
It may be express, or implied from the acts of the principal, from his silence or lack of action, or his failure to repudiate the agency, knowing that another person is acting on his behalf without authority. As a general rule, a contract of agency may be oral. However, it must be written when the law requires a specific form.”[ Yoshizaki v. Joy Training Center of Aurora, Inc., G.R. No. 174978, July 31,