Rallos v Go Chan and Sons Realty Co.

The Rallos Sisters executed a special power of atty in favor of their brother Simeon
authorizing him to sell their lot. Simeon was able to sell his lot to Felix Go Chan and Sons
Realty after one of his principals died. The administrator of the estate filed a complaint to
set aside the said sale in so far as half the said lot because the sale should be unenforceable.

In the sale of the undivided share of Concepcion Rallos in lot 5983 valid although it
was executed by the agent after the death of his principal? NO.
The court went in detail into the discussion of the contract of agency. It is a basic axiom in
civil law embodied in our Civil Code that no one may contract in the name of another
without being authorized by the latter, or unless he has by law a right to represent him. A
contract entered into in the name of another by one who has no authority or the legal
representation or who has acted beyond his powers, shall be unenforceable (art 1403),
unless it is ratified.

Given the above principles, sprung the creation and acceptance of the relationship of
agency whereby one party, caged the principal (mandante), authorizes another, called the
agent (mandatario), to act for and in his behalf in transactions with third persons.

Essential elements:
1. Consent, express or implied
2. Object- the execution of a juridical act in relation to a 3rd person
3. Agent acts as a representative and not for himself
4. The agent acts within the scope of his authority.

Agency is basically personal representative, and derivative in nature. The authority of the
agent to act emanates from the powers granted to him by his principal; his act is the act of
the principal if done within the scope of the authority. Qui facit per alium facit se. "He who
acts through another acts himself".

By reason of the very nature of the relationship between Principal and agent, agency is
extinguished by the death of the principal or the agent. One of the modes of extinguishing
agency is by death of the Principal (art 1919).

Manresa also says that the integration of the principal in the person of the agent is no longer
possible. The juridical basis of agency which is representation no longer exists.

Thus the general rule is that death of the principal or of the agent extinguishes the agency.
There are, however, 2 exceptions to this.
1930- when the agency was constituted in the common interest of the latter and of the
agent, or in the interest of a third person who has accepted the stipulation in his favor.
1930- anything done by the agent shall be fully effective with respect to 3rd persons in GF.
Good faith here means that either the agent nor the third parties knew of the death of the
principal.

This case does not fall under any of the exceptions, therefore the GR shall apply.