RALLOS v FELIX GO CHAN & REALTY COPR., Munoz-PalmaPlaintiff: Ramon Rallos

Defendant: Felix Go Chan & Sons Realty CorporationFacts: Concepcion and Gerundia Rallos were sisters and registered co-owners of the parcel of land in issue. They executed a special power of attorney in favor of their brother, Simeon Rallos, authorizing him to sell such land for and in their behalf. After Concepcion died, Simeon Rallos sold the undivided shares of his sisters Concepcion and Gerundia to Felix Go Chan & Sons Realty Corporation for the sum of P10,686.90. New TCTs were issued to the latter.Petitioner Ramon Rallos, administrator of the Intestate Estate of Concepcion filed a complaint praying (1) that the sale of the undivided share of the deceased Concepcion Rallos in lot 5983 be unenforceable, and said share be reconveyed to her estate; (2) that the Certificate of 'title issued in the name of Felix Go Chan & Sons Realty Corporation be cancelled and another title be issued in the names of the corporation and the "Intestate estate of Concepcion Rallos" in equal undivided and (3) that plaintiff be indemnified by way of attorney's fees and payment of costs of suit.Issues: Whether or not the sale fell within the exception to the general rule that death extinguishes the authority of the agentHeld/Ratio: Yes the sale is void. The court held 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 (Art. 1317 of the Civil Code).Simons authority as agent was extinguished upon Concolacions death. The sale did not fall under the exceptions to the general rule that death ipso jure extinguishes the authority of the agent. Art. 1930 inapplicable since SPA in favor of Simon Rallos was not coupled with interest and Art. 1931 inapplicable because Rallos knew of principal Concepcions death. For Art 1931 to apply, both requirements must be present

Laws on agency, the terms of which are clear and unmistakable leaving no room for an interpretation contrary to its tenor, should apply, the law provides that death of the principal ipso jure extinguishes the authority of the agent to sell rendering the sale to a third person in good faith unenforceable unless at the agent had no knowledge of the principals death at that time (exception under Art. 1931)

Dispositive: CA Decision reversed, CFI decision affirmed. Sale was null and void.(Court discussed relevant principles first)Relationship of Agency (concept arising from principles under Art 1317 and 1403)- one party, caged the principal (mandante), authorizes another, called the agent (mandatario), to act for and in his behalf in transactions with third persons.

-derivative in nature, power emanating from principal

-agents acts are acts of the principal

Essential Elements:

(1) there is consent, express or implied of the parties to establish the relationship; (2) the object is the execution of a juridical act in relation to a third person; (3) the agents acts as a representative and not for himself, and (4) the agent acts within the scope of his authority. Extinguishment

Generally: among others, By the death, civil interdiction, insanity or insolvency of the principal or of the agent- death of the principal effects instantaneous and absolute revocation of the authority of the agent

Exceptions:

(Art. 1930) if it has been 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. (Art. 1931) agent acted without knowledge of the pricipals death and that the third person was in good faith (both these reqs should be present)