Practice question
An unpaid subscription is not yet due, and its contract expressly excludes interest before maturity. The corporation nevertheless charges interest from signing solely because Section65 mentions subscription interest. No other legal basis applies. Which is best?
- The section’s contractual condition cannot be ignored to impose the contrary pre-maturity charge
- Every subscription necessarily bears interest from signing despite an express term
- All unpaid shares are delinquent on signing
- The treasurer may rewrite the contract without authority
- Only the certificate’s color determines interest
Legal references
- RA11232 Revised Corporation Code: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html Sections63,65–66 and71.
Answer this question in flashcards to review your response and continue practicing.