Civil Protection for Third Parties in Good Faith in Their Contracts with Members of Parliament

Abstract

The role of an agent, when contracting with a third party, is to protect the interests of their principal, as entrusted to them under the agency agreement. However, agents sometimes err when they exceed the scope of their agency and the authority granted to them under the agency agreement, or if the action is flawed. They then face two dilemmas: either exceeding their mandate, or the legal position acquired by the third party who contracted with the agent in good faith and was unaware of the agent's overstepping of their authority, and the necessity of protecting the third party's legal position and maintaining the stability of transactions and the trust placed in them by the third party in good faith. Therefore, it is essential to provide the necessary protection for third parties who contract in good faith with an agent, especially if the agent exceeds their mandate and does not obtain the principal's authorization for the excesses.

Our research will focus on the legal provisions in the Civil Code through which the legislator provides the necessary protection for third parties acting in good faith when dealing with an agent in a legal transaction whose effects are attributed to the principal. Our research will proceed as follows: The analytical approach: This involves analyzing the legal texts in the laws under study to identify the most important provisions that provide necessary protection for bona fide third parties, and whether these provisions are sufficient to protect the rights of third parties contracting with the representative. The comparative approach: This will determine which civil laws provide the necessary protection for bona fide third parties contracting with the representative, and which laws are deficient or have legislative shortcomings regarding this protection. We will compare the Iraqi Civil Code with the Egyptian Civil Code and the UAE Civil Transactions Law whenever necessary.