Colombian Commercial Code - Decree 410 of 1971 - Book IV - Of Contracts and Corporate Obligations - Title XIII - The Mandate - Chapter II - Rights and Duties of the President and Principal - From: Section 1266 to: 1278 Art

CHAPTER II

Rights and duties of the president and the principal

Section 1266 .- The president shall not exceed the limits of your order.

The acts done beyond these limits are only binding on the agent, unless the principal ratifies them.

The president may withdraw from the instructions, when unknown circumstances that can not be communicated to the client, reasonable grounds to suspect that he would have given approval.

Section 1267 .- In cases not covered by the principal, the President shall suspend the execution of his order, while referring to the former. But if the business or state of emergency does not allow any delay or if the president is empowered to work there at will, act according to his prudence and in tune with the customs of merchants diligent.

Section 1268 .- The representative must keep the client on the progress of the business, pay itemized and justified in the management and give everything you have received because of the mandate, within three days of the termination.

The president will pay the principal reason for the interest amount that is required to provide, in case of default.

Section 1269 .- The President shall promptly inform the client the full implementation of the mandate.

The president will be obliged to inform the client supervening circumstances that may determine the revocation or modification of the mandate.

Section 1270 .- If the principal is not responsive to the communication agent in a reasonable time, his silence is equivalent to approval, but the representative had been separated from their instructions or exceeded the limit of its powers.

Section 1271 .- The president shall not employ in their own businesses the funds that provide the principal and, if so, it shall pay the statutory interest from the date that violates the prohibition and shall indemnify the damage he caused, without prejudice to the penalties relating to criminal breach of trust.

The same rule applies when the president delivered the money given to a destination other than expressly stated.

Section 1272 .- When the mandate is granted to several persons, each of the representatives may act separately, but once accomplished the task by one of them should be the principal reported the incident to others, as soon as it becomes aware of the celebration of the business, so penalty to compensate the damages caused by his failure or delay.

If under the contract, the leaders must work together, jointly and severally liable to the principal.

Section 1273 .- The president shall provide to the custody of the things that are issued on behalf of the client, and protect the rights of the latter in connection with the carrier or third parties.

In case of emergency the president can proceed with the sale of these things in bags or hammers.

Section 1274 .- The president can not make counterpart of the principal, unless expressly authorized it.

Section 1275 .- People who deal professionally in activities covered by the mandate not to accept the task they have been given shall be required to take the measures outlined in Article 1273 and all those which are desirable for protecting the interests of the client, while it provides the leading, without this being understood tacitly accepted the mandate.

Section 1276 .- When the mandate conferred by several constituents and for the same business, shall be jointly responsible to the president of the obligations.

Section 1277 .- The president is entitled to pay their debts, under mandate you have run with the sums that it holds on behalf of the client and in any case, the preference granted by law to wages, salaries and other benefits from labor relations.

Section 1278 .- The rejection notice may be given the same or his authorized representative.