Practice question
A lender extends credit before any alleged representation of partnership and stipulates it did not rely on that later representation in giving the credit. The lender invokes Article 1825 solely because holding out occurred afterward. Which is correct?
- The stipulated absence of reliance when credit was given defeats that asserted basis.
- Every later statement retroactively creates reliance
- Any public title automatically changes every old debt
- The lender’s lack of reliance is never relevant
- Only the representation’s font matters
Legal references
- Civil Code, RA 386, Articles 1769 and 1825: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
Answer this question in flashcards to review your response and continue practicing.