Practice question
A debtor proves only ordinary cost increases and financial difficulty in a freely assumed future undertaking. It claims Article 1267 automatically cancels every duty. Which is correct under Poon?
- Any loss of profit cancels a contract
- All increased expense is unforeseeable by law
- The debtor may select a new price unilaterally
- Only the creditor’s wealth matters
- Ordinary increased expenses or pecuniary inability do not by themselves establish the exceptional statutory case
Legal references
- Spouses Poon v. Prime Savings Bank, G.R. No.183794, June 13, 2016, MAIN decision, exceptional difficulty: https://lawphil.net/judjuris/juri2016/jun2016/gr_183794_2016.html
- Civil Code, Articles 1209-1210,1223-1230,1238-1243,1266-1268 and1423-1430: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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