RALLOS v.

FELIX GO CHAN & SONS REALTY

G.R. No. L-24332, January 31, 1978

Facts:

An SPA was executed by sisters Concepcion and Gerundia in favor of their brother
Simeon for the sale of a parcel of land co-owned by the two. Months after Conception
died, Simeon sold the undivided shares of his sisters to herein respondent Felix Go Chan
& Realty Corp. Petitioner Ramon Rallos, administrator of the late Concepcion’s estate,
prayed that the sale of the undivided share of the deceased be invalidated and a new
certificate be issued in the name of respondent corporation and Concepion’s intestate
estate, plus damages. CFI ruled in favor of petitioner and granted the payers but CA
reversed the decision. Respondent’s MR was further denied.

Issue:

Whether the sale entered into by an agent is valid although executed after death of the
principal.

Held:

No, the sale is void because Simeon’s authority as an agent of Concepcion was
extinguished upon her death.

Article 1317 provides that no one may contract in the name of another without being
authorized or unless he has, by law, a right to represent him. Article 1919 furthers that
the death of the principal terminates the agency.

The case at bar is also not among the exceptions whereby an agent’s acts bind the
principal even after the latter’s death because of Simeon’s knowledge of Concepion’s
death is material. Hence, the sale was null and void.