Practice question · Multiple choice
Registered facts bind everyone; unregistered ones fail against a party in good faith. Why does the registry protect the third party rather than the truth?
Hints
- Ask who could most cheaply have prevented the ignorance.
- What would a buyer have to do before every transaction if the rule were reversed?
Show the answer
A. Because commerce needs a source that can be relied on
Why
Publicity works by putting the loss on the cheapest avoider. That is what makes the register worth consulting: what it says can be acted on without investigating behind it.
Practise The Commercial Registry and Legal Publicity
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More questions on The Commercial Registry and Legal Publicity
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- Match each registry principle to its meaning.
- Which consequences flow from _failing_ to register a registrable fact?
- A supplier checks the Commercial Registry, sees Ana listed as administrator, and contracts with her, but the…
- Order the journey of a company fact into full opposability.