Practice question
The principal authorizes borrowing PHP 200,000 from Bank B only, with no guarantee for third parties. The draft instead authorizes unlimited loans and guarantees. Which correction is needed?
- Retain the broader text because the title controls.
- Replace the limit with any amount the agent prefers.
- Add unlimited gifts to strangers.
- Let the debtor of another transaction choose the powers.
- State the intended borrowing limit and lender and exclude third-party guarantees.
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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