Purpose
An act by an agent without authority does not bind the principal (Korean Civil Act Art. 130). But where the principal contributed to an appearance of authority, the law protects third parties who reasonably relied on it.
Three types
- Art. 125: the principal told a third party that authority was granted when it was not.
- Art. 126: an agent with some basic authority exceeds it, and the third party had justifiable reason to believe the act was authorised. This is the most litigated form.
- Art. 129: authority has ended but the third party was in good faith and not negligent.
Justifiable reason
Courts judge objectively whether belief in authority was reasonable at the time, considering possession of seal certificates or title documents, transaction size and whether the principal could have been contacted. Basic authority must concern juristic acts; the Supreme Court has accepted spousal authority for daily household matters.
Effects
The principal is bound as if the agent had authority; the third party must invoke it, and comparative negligence does not apply. Otherwise, the unauthorised agent is liable under Art. 135.
References
- 「민법」 제125조, 제126조, 제129조, 제130조, 제135조.
- 곽윤직, 김재형. (2013). 『민법총칙』(제9판). 박영사.
- 송덕수. (2024). 『민법총칙』(제7판). 박영사.