Question

Human Relations: Thoughtless Extravagance (Civil Code, Art. 25)

In a recent case, John, a wealthy businessman, made several extravagant purchases. He bought a luxury car, a lavish vacation home, and expensive designer clothes, all within a span of a few months. Unbeknownst to John, his business was incurring significant losses and was on the verge of bankruptcy.

As a result of his thoughtless extravagance, John's creditors were left unpaid and his business partners suffered financial losses. In light of this situation, answer the following questions:

1. Identify and explain the legal principle under Article 25 of the Civil Code that is relevant to John's thoughtless extravagance.
2. Discuss the potential legal consequences that John may face due to his thoughtless extravagance, particularly in relation to his creditors and business partners.
3. Outline any possible defenses or mitigating factors that John can raise to minimize his liability under the Civil Code.