Colombian Commercial Code - Decree 410 of 1971 - Book IV - Of Contracts and Corporate Obligations - Title XIII - The Mandate - Chapter VI - Proposition - From: Section 1332 to: 1339 Art

CHAPTER VI

Preposition

Section 1332 .- The preposition is a form of mandate concerns the management of a commercial establishment or a part or branch of activity of the same. In this case, the president will be called factor.

Section 1333 .- The preposition must be registered in the commercial register, however, third parties can prove their existence by all evidence. The revocation must also enroll in the Commercial Register, to be effective against third parties.

Section 1334 .- Repealed. Law 27 of 1997 and Act 222 of 1995.

Section 1335 .- Factors may enter into or perform all acts related to the ordinary business of the establishment managed, including divestitures and charges of the elements of the establishment are included within this turn, as the preponente not expressly limit those powers , the limitation must be registered in the commercial register, to be effective against third parties.

Section 1336 .- Factors should always act on behalf of their constituents and express sign documents which make it "by proxy". Acting in this manner and within the limits of its powers, duties directly to preponente, but violate the instructions, take ownership of the outcome of the negotiations or committing breach of trust.

Section 1337 .- Although the factors acting in his own name preponente in force the following cases:

1. When the act or contract applicable to the ordinary course of managed facility and is notorious quality factor of the person who works, and

2. When the result of the business to the advantage of preponente, while not possessing the qualifications prescribed in the preceding paragraph.

Paragraph .- In either case, parties who contract with the factor may exercise their actions against him or against preponente, but not against both.

Section 1338 .- The factors will be responsible for compliance with tax laws and administrative regulations concerning the business or activity is dedicated managed the establishment, as well as those concerning the accounting of such businesses, failing to compensate the damages that preponente proceedings instituted for breach of such obligations.

Section 1339 .- Factors may not, without the authorization of preponente, negotiate on your own or take an interest in his name or that of another person, the same kind of negotiations that take place in the run establishment. In case of violation of this prohibition, the preponente entitled to profit or benefit obtained by the factor, with no obligation to bear the loss that may occur.