Short answer. No. Article 1930 of the Civil Code expressly provides that the agency remains in full force and effect even after the death of the principal when it was constituted in the common interest of both the principal and the agent. You may continue acting under the agency.
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 →
Why death normally ends an agency — and why yours is different
The default rule is that an agency terminates upon the death of the principal. The agent's authority is personal to the principal and cannot survive the extinction of the person who granted it — at least where the agency served only that principal's interests. Article 1930 creates a firm exception for agencies that were constituted in the common interest of both the principal and the agent. When the agent has a stake of his own in the agency, the death of the principal does not automatically strip that stake away. The agency continues, protecting both the ongoing business and the agent's interest in completing it.
What "common interest" requires
The interest must be genuine and mutual, not merely incidental. An agent who earns a commission has an interest in completing the task, but that alone may not be enough — ordinary compensation does not usually transform a personal mandate into a common-interest agency. The common interest typically arises when the agency was established as part of a broader arrangement in which both parties benefit in a way that cannot simply be cancelled by one side. A typical example is an agency coupled with a security interest — where the agent's authority was granted precisely to protect something the agent is owed. The more clearly this mutual stake appears in the agreement, the stronger your position.
What you may and may not do after the principal's death
Because the agency survives, acts you perform within the original scope of your authority remain valid. The principal's estate is bound. The heirs cannot revoke the agency simply because the principal has died, if the common interest is still in place. You are, however, still bound by the original limits of your authority. The exception in Article 1930 does not enlarge your powers — it merely preserves them. Acts that were outside your authority before the death remain outside it after.
When the common interest disappears
If the purpose that created the common interest is fully accomplished, or if the shared stake is extinguished for another reason, the basis for this exception ends and the normal consequences of the principal's death apply. Whether the common interest is real and subsisting is a factual question. If the heirs challenge your continued authority, you will need to show from the terms of the agency — and the circumstances in which it was created — that a genuine mutual interest existed and that it has not yet been fully served.
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 →