Practice question
A principal’s written power shown to a third person authorizes a transaction. A secret private instruction between principal and agent narrows it, but the third person relies on the shown power without knowledge of the secret limit. The principal invokes the secret instruction alone to defeat that reliance. Which is correct?
- Every secret limit automatically binds every stranger
- Third persons can never inspect authority
- Articles 1900 and 1902 protect the described reliance on the written power or instructions shown, rather than permitting secret restrictions to prejudice it
- The agent becomes owner of all property
- The principal can erase any written power retroactively without qualification
Legal references
- Civil Code, Articles 1900 and 1902: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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