Practice question
An owner orally authorizes an agent to sell a parcel. The agent executes a sale, and the buyer invokes the principle that ordinary contracts may be oral. The only authority shown remains oral, with no other curative facts stipulated. What is the proper analysis?
- General freedom of form defeats Article 1874
- The agent’s authority is irrelevant
- A buyer’s private belief creates written authority
- The specific written-authority requirement of Article 1874 controls; the general rule cannot erase it
- Every land transaction is invalid even with proper authority
Legal references
- Civil Code, Articles 1356 and 1874: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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