Practice question · Multiple choice
A supplier checks the Commercial Registry, sees Ana listed as administrator, and contracts with her, but the company revoked her powers a month ago without registering it. Who bears the loss?
Hints
- The register exists to be relied on. Ask what that reliance is worth if it can be defeated by unpublished facts.
- Who was in a position to register the revocation?
Show the answer
A. The company, since an unregistered fact cannot bind a good-faith buyer
Why
Negative publicity puts the cost on the party who could have registered and did not, so the market can trade on the register rather than investigating each counterparty. Making reliance safe is the whole reason a public ledger of corporate life exists.
Practise The Commercial Registry and Legal Publicity
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More questions on The Commercial Registry and Legal Publicity
- A third party who privately knew about an unregistered revocation of powers can still rely on the registry’s…
- Complete the two publicity effects.
- Sort each fact: must it be registered in the Commercial Registry?
- Match each registry principle to its meaning.
- Which consequences flow from _failing_ to register a registrable fact?
- Registered facts bind everyone; unregistered ones fail against a party in good faith. Why does the registry…
- Order the journey of a company fact into full opposability.