Title 18 — Business Structure and Function

The contract of employment is a contract by which one, who is called the employer, engages another, who is called the employee, to do something for the benefit of the employer, or of a third person. SOURCE: CC § 1965. NOTE: No 1970 Civil Code '§ 1966-1968 existed. ---------- ARTI…

An employer must indemnify his employee, except as prescribed in the next section, for all that he necessarily expends or loses in direct conse- quence of the discharge of his duties as such, or of his obedience to the directions of the employer, even though unlawful, unless the …

An employer is not bound to indemnify his employee for losses suffered by the latter in consequence of the ordinary risks of the business in which he is employed, nor in consequence of the negligence of another person employed by the same employer in the same general business, un…

An employer must in all cases indemnify his employee for losses caused by the former's want of ordinary care. SOURCE: CC § 1971. NOTE: No 1970 Civil Code '§ 1972-1974 existed. ---------- ARTICLE 3 OBLIGATIONS OF THE EMPLOYEE

One who, without consideration, undertakes to do a service for another, is not bound to perform the same, but if he actually enters upon its perfor- mance, he must use at least slight care and diligence therein. SOURCE: CC § 1975.

One who, by his own special request, induces another to entrust him with the performance of a service, must perform the same fully. In other cases, one who undertakes a gratuitous service may relinquish it at any time. SOURCE: CC § 1976.

A gratuitous employee who accepts a written power of attorney must act under it so long as it remains in force, or until he gives notice to his employer that he will not do so. SOURCE: CC § 1977.

One who, for a good consideration, agrees to serve another, must perform the service and must use ordinary care and diligence therein, so long as he is thus employed. SOURCE: CC § 1978.

COL120106 One who is employed at his own request to do that which is more for his own advantage than for that of his employer, must use great care and diligence therein to protect the interest of the latter. SOURCE: CC § 1979.

A contract to render personal service, other than a contract of apprenticeship, as provided in the Chapter on master and servant, cannot be enforced against the employee beyond the term of five (5) years from the commencement of service under it; but if the employee voluntarily c…

An employee must substantially comply with all the directions of his employer concerning the service on which he is engaged, except where such obedience is impossible or unlawful, or would impose new and unreasonable burdens upon the employee. SOURCE: CC § 1981.

An employee must perform his service in conformity to the usage of the place of performance, unless otherwise directed by his employer, or unless it is impracticable, or manifestly injurious to his employer to do so. SOURCE: CC § 1982.

An employee is bound to exercise a reasonable degree of skill, unless his employer has notice, before employing him, of his want of skill. SOURCE: CC § 1983.

An employee is always bound to use such skill as he possesses, so far as the same is required, for the service specified. SOURCE: CC § 1984.

COL120106 Everything which an employee acquires by virtue of his employment, except the compensation, if any, which is due to him from his employer, belongs to the latter whether acquired lawfully or unlawfully, or during or after the expiration of the term of his employment. SOU…

An employee must, on demand, render to his employer just accounts of all his transactions in the course of his service, as often as may be reasonable, and must, without demand, give prompt notice to his employer of everything which he receives for his account. SOURCE: CC § 1986.

An employee who receives anything on account of his employer, in any capacity other than that of a mere servant, is not bound to deliver it to him until demanded, and is not at liberty to send it to him from a distance, without demand, in any mode involving greater risk than its …

An employee who has any business to transact on his own account, similar to that entrusted to him by his employer, must always give the latter the preference. SOURCE: CC § 1988.

An employee who is expressly authorized to employ a substitute is liable to his principal only for want of ordinary care in his selection. The substitute is directly responsible to the principal. SOURCE: CC § 1989.

An employee who is guilty of a culpable degree of negligence is liable to his employer for the damage thereby caused to the latter; and the employer is liable to him, if the service is not gratuitous, for the value of such services only as are properly rendered. COL120106 SOURCE:…

Where service is to be rendered by two or more persons jointly, and one of them dies, the survivor must act alone, if the service to be rendered is such as he can rightly perform without the aid of the deceased person, but not otherwise. SOURCE: CC § 1991.

The obligations peculiar to confidential employments are defined in the Part on trusts. SOURCE: CC § 1992. NOTE: No 1970 Civil Code '§ 1993-1995 existed. ---------- ARTICLE 4 TERMINATION OF EMPLOYMENT

Every employment in which the power of the employee is not coupled with an interest in its subject is terminated by notice to him of: 1. The death of the employer; or 2. His legal incapacity to contract. COL120106 SOURCE: CC § 1996.

Every employment is terminated: 1. By the expiration of its appointed term; 2. By the extinction of its subject; 3. By the death of the employee; or 4. By his legal incapacity to act as such. SOURCE: CC § 1997.

An employee, unless his term of service has expired, or unless he has a right to discontinue it at any time without notice, must continue his service after notice of the death or incapacity of his employer, so far as is necessary to protect from serious injury the interests of hi…

An employment, having no specified term, may be terminated at the will of either party, on notice to the other. Employment for a specified term shall mean an employment for a period greater than one month. SOURCE: CC § 1999.

An employment, for a specified term, may be terminated at any time by the employer, in case of any willful breach of duty by the employee in the course of his employment, or in case of his habitual neglect of his duty or continued incapacity to perform it. SOURCE: CC § 2000.

An employment, for a specified term, may be terminated by the employee at any time, in case of any willful or permanent breach of the obligation of his employer to as an employee. COL120106 SOURCE: CC § 2001.

An employee who is not employed for a specified term, dismissed by his employer, is entitled to compensation for services rendered up to the time of such dismissal. SOURCE: CC § 2002.

An employee who is not employed for a specified term and who quits the service of his employer, is entitled to compensation for services rendered up to the time of such quitting. SOURCE: CC § 2003.

There shall not be deducted from the wages of an employee on account of the employee's coming late to work, a sum in excess of the proportionate wage which would have been earned during the time actually lost; provided, that for a loss of time less than 30 minutes a half hour's w…

A servant is one who is employed to render personal service to his employer, otherwise than in the pursuit of an independent calling, and who in such service remains entirely under the control and direction of the latter who is called his master. SOURCE: CC § 2009.

A servant is presumed to have been hired for such length of time as the parties adopt for the estimation of wages. A hiring at a yearly rate is pre- sumed to be for one year; a hiring at a daily rate, for one day; a hiring by piecework, for no specified term. SOURCE: CC § 2010.

In the absence of any agreement or custom as to the term of service, the time of payment, or rate or value of wages, a servant is presumed to be COL120106 hired by the month, at a monthly rate of reasonable wages, to be paid when the service is performed. SOURCE: CC § 2011.

Where, after the expiration of an agreement respecting the wages and the term of service, the parties continue the relation of master and servant, they are presumed to have renewed the agreement for the same wages and term of service. SOURCE: CC § 2012. NOTE: No CC § 2013 existed…

A servant must deliver to his master, as soon as with reasonable diligence he can find him, everything he receives for his account, without demand; but he is not bound, without orders from his master, to send everything to him through another person. SOURCE: CC § 2014.

A master may discharge any servant, other than an apprentice, whether engaged for a fixed term or not: 1. If he is guilty of misconduct in the course of his service, or of gross immorality, though unconnected with the same; or 2. If, being employed about the person of the master,…

An angent must not exceed the limits of his actual authority, as defined by Part 2 of this Title on Agency. SOURCE: CC § 3019.

An agent must use ordinary diligence to keep his principal informed of his acts in the course of the agency. SOURCE: CC § 2020.

An agent employed to collect a negotiable instrument must collect it promptly, and take all measures necessary to charge the parties thereto, in case of its dishonor, and, if it is a bill of exchange, must present it for acceptance with reasonable diligence. SOURCE: CC § 2021.

A mere agent of an agent is not responsible as such to the principal of the latter. SOURCE: CC § 2022. NOTE: No 1970 Civil Code '§ 2023-2025 existed. ---------- ARTICLE 3 FACTORS

A factor is an agent who, in the pursuit of an independent calling, is employed by another to sell property for him, and is vested by the latter with the possession or control of the property, or authorized to receive payment therefor from the purchaser. SOURCE: CC § 2026.

A factor must obey the instructions of his principal to the same extent as any other employee, notwithstanding any advances he may have made to his principal upon the property consigned to him, except that if the principal forbids him to sell at the market price, he may, neverthe…

A factor may sell property consigned to him on such credit as is usual; but, having once agreed with the purchaser upon the term of credit, may not extend it. SOURCE: CC § 2028.

A factor who charges his principal with a guaranty commission upon a sale thereby assumes absolutely to pay the price when it falls due, as if it were a debt of his own, and not as a mere guarantor for the purchaser; but he does not thereby assume any additional responsibility fo…

COL120106 A factor who receives property for sale, under a general agreement or usage to guarantee the sales or the remittance of the proceeds, cannot relieve himself from responsibility therefor without the consent of his principal. SOURCE: CC § 2030. NOTE: No 1970 Civil Code '§…

The master of a ship is appointed by the owner, and holds during his pleasure. SOURCE: CC § 2034.

The master of a ship is bound to be always on board when entering or leaving a port, harbor, or river. SOURCE: CC § 2035.

On entering or leaving, or operating a vessel within, a port or harbor, the master of a vessel, unless otherwise exempt under the provisions of this Chapter or pursuant to Federal Law, must take on a pilot duly licensed by the Port Authority of Guam to provide pilotage services. …

The Manager of the Port Authority of Guam shall have the power and duty to issue pilot licenses pursuant to credentialing criteria established by rules and regulations of the Authority for persons who seek to engage in the profession of harbor pilot within Guam. Each such license…