NPM No. 102-2015
Requesting Entity: Commission on Audit (COA)
Issues Concern: Death of Sole Proprietor
Effect of the death of the sole proprietor during the implementation of an infrastructure project
In government procurement, a bidder is awarded with the contract based on its qualification and compliance with the legal, technical and financial requirements of the procuring entity. Considering that the legal personality of the sole proprietor is the same as that of the sole proprietorship, the death of the sole proprietor causes the dissolution of the latter. Hence, its obligation under the contract is necessarily extinguished.