Practice question
A principal authorizes an agent by a special power to compromise a dispute. The agent claims that this alone authorizes submission to arbitration. Which rule applies?
- Every compromise authority includes arbitration
- Arbitration requires no authority in any agency
- The opponent may expand the authority unilaterally
- Article 1880 states that a special power to compromise does not authorize submission to arbitration
- Only the dispute amount matters
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Articles 1874, 1877–1881.
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