Practice question
A principal gives an agent authority to compromise a dispute. The agent, without further authority, submits it to arbitration and argues that Article 1880 treats the two powers as identical. Which is correct?
- A special power to compromise does not by itself authorize submission to arbitration
- Every compromise power includes arbitration automatically
- The agent may choose any dispute procedure without authority
- The principal loses every objection by having appointed an agent
- Arbitration is never legally possible
Legal references
- Civil Code, Article 1880: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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