Practice question
A valid corporation owes an architect under a duly authorized contract. The corporation argues that an obligation needs a passive subject and a corporation cannot be one because it has no human body. Which response is correct?
- Its juridical personality allows it to incur the contractual obligation
- Only the architect can be the debtor
- Every director necessarily replaces the corporation as debtor
- The contract automatically becomes a natural obligation
- The debt exists only if the corporation dissolves
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles46,1156,1349,1423–1424,1428.
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