Question: If the principal undertakes an action that does not prevent the agent from acting—for example, he says, “I appoint you as my agent to sell my house,” and then, after the agent has left, the principal leases it out—does the agency become invalid, such that we say this constitutes a dismissal?
The answer is no, because leasing does not conflict with selling: a leased property may still be sold. Since it is permissible to sell a leased property, the principal’s action in this case is not considered a termination of the agency, because there is no conflict between the matter for which he appointed the agent and his own action.
Thus, if he undertakes an action that conflicts with the agency, it constitutes a dismissal; but if he undertakes an action that does not conflict with the agency, it is not a dismissal.
The author’s statement, “and by an interdiction on account of incompetence”: The author did not mention minority, because an adult cannot become a minor, so this never arises. As for interdiction due to insanity, it requires further detail: if the insanity is continuous, the agency is terminated; but if it is intermittent—for instance, it comes for an hour and then passes—the agency is not terminated. There are three causes for legal interdiction: minority, insanity, and incompetence. If either the agent or the principal is placed under interdiction on account of incompetence, the agency is terminated.
The author’s statement, “and by an interdiction on account of incompetence,” has both an explicit implication and an inferred converse. Its inferred converse concerns interdiction due to insolvency. Whoever is incapable of managing his financial affairs properly is placed under interdiction on account of incompetence. But one who is capable of managing his affairs, yet is a debtor whose debts exceed his assets, is placed under interdiction due to insolvency. Thus, an agency is invalidated by interdiction on account of incompetence.
An example of this is where the principal says to someone, “Sell my house,” and then the man who appointed him to sell it—that is, the owner of the house—suffers a mental impairment that corrupts his capacity to transact. In that case, the agency does not continue; rather, it is terminated, because the principal now, if he wished to act personally