Short answer. No. Under Article 1930 of the Civil Code, the agency remains in full force and effect even after the principal's death when it was constituted in the interest of a third person who has accepted the stipulation in his favor. The death of the principal does not automatically extinguish it.
What the law says
The agency shall remain in full force and effect even after the death of the principal, 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.
Civil Code, Article 1930 — Agency Surviving the Principal's Death. Read the full provision →
The general rule and why your situation is an exception
Ordinarily, an agency is extinguished by the death of the principal. The reasoning is straightforward: the agent acts in the principal's name, and once the principal no longer exists, there is no one whose affairs can be managed. The heirs step in, and the agency ends. Your situation, however, falls under a statutory exception. Article 1930 of the Civil Code carves out two scenarios where the agency survives: (1) when it was constituted in the common interest of both principal and agent, and (2) when it was constituted in the interest of a third person who accepted the stipulation in his favor. You are in the second category.
What "accepted the stipulation in his favor" means
The third party's acceptance is the critical element. The law does not automatically protect a stranger who simply benefits incidentally from an agency. The third person must have accepted the stipulation — meaning he was aware of it and agreed to its terms. This acceptance is what gives him a vested interest in the continuation of the agency, and it is that vested interest the law protects against the accident of the principal's death. If the third party never accepted, the ordinary rule would apply and the agency would end with the principal.
Practical effect: you continue to act for the third party
Because the agency survives, you retain authority to act. Acts you carry out within the scope of the agency remain valid and binding on the principal's estate. The heirs cannot simply revoke the agency on the ground that the principal died, because the third party's accepted right stands as a legal obstacle to revocation. That said, the agency still operates within its original terms. You cannot expand its scope by relying on this exception — you are bound by whatever the original authority covered. If the third party's interest has already been fully served, the basis for the exception disappears.
When this exception does not help you
If the third party never formally accepted the stipulation in his favor, you cannot invoke Article 1930. Similarly, if the agency was constituted purely for the benefit of the principal with no genuine interest granted to a third party, the death of the principal terminates it. Whether acceptance occurred is a factual question that depends on communications, conduct, and the terms of the agency document. If you are uncertain whether acceptance was clear enough to satisfy this standard, the safest course is to document what took place and consult a lawyer before continuing to act.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Spouses Feliciana and Angel Cesa vs. Spouses Elisa Montano Brucelas and David Brucelas, G.R. No. 255564, March 5, 2025 — read the decision on LawPhil →
- Asaphil Construction and Development Corporation vs. Vicente Tuason, Jr., et al, G.R. No. 134030, April 25, 2006 — read the decision on LawPhil →