Practice question
Without knowing of the principal’s death, an agent completes an authorized transaction with a third person who contracts in good faith. No fact defeats the statutory protection. The heirs claim death invariably invalidates the act. Which is correct?
- Every post-death act is necessarily void
- The agent’s ignorance alone suffices even if the third person acts in bad faith
- The third person’s wealth determines validity
- Article 1931 validates the described act where the agent lacks knowledge of extinction and the contracting third person acts in good faith
- The act transfers every estate asset to the agent
Legal references
- Civil Code, Article 1931: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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