Practice question
An agent is to bind the principal as guarantor for another’s debt. Should the operative SPA specifically grant that authority?
- Yes.
- No; routine management necessarily includes every guarantee.
- No; a document title alone supplies all powers.
- No; only the debtor must authorize the principal’s liability.
- No; guarantees can never be made through agents.
Legal references
- Civil Code, Articles 1654-1663 and 1878, specific provision identified: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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