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Valenzuela V CA
Valenzuela V CA
Philamgens stipulation liability against him for unpaid premiums. The respondents cannot state that the
agency relationship between Valenzuela and Philamgen is not coupled with interest.
There is an exception to the principle that an agency is revocable at will and that is when the agency has
been given not only for the interest of the principal but also for the mutual interest of the principal and the
agent. The principal may not defeat the agent's right to indemnification by a termination of the contract of
agency. Also, if a principal violates a contractual or quasi-contractual duty which he owes his agent, the
agent may as a rule bring an appropriate action for the breach of that duty . Hence, if a principal acts in
bad faith and with abuse of right in terminating the agency, then he is liable in damages.