Practice question
An agent is to novate an existing obligation so that it is extinguished and replaced. The SPA grants only routine bill payment. Which is correct?
- The proposed extinguishing novation needs the relevant special authority.
- Routine payment necessarily authorizes every novation.
- The creditor alone may enlarge the agency.
- Changing the heading supplies every missing operative power.
- Existing obligations cannot be addressed by special powers.
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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