Philippine Bar review · Question

Practice question: Waiver

Multiple Choice Hard

Practice question

Two parties settle their own dispute and include a clause purporting to extinguish a separate right belonging to a third person. The third person's legal right and resulting prejudice are established; the third person neither participates nor authorizes the waiver. The signers argue that their agreement automatically disposes of that right. Apply Article 6.
  1. The signers cannot rely on Article 6 to validate prejudice to the third person's recognized right.
  2. The clause necessarily binds every nonparty because two persons signed.
  3. A third person's right vanishes whenever settlement saves money.
  4. Only the clause's title matters.
  5. Third-person rights never limit private waiver.

Legal references

  • Civil Code Article6; https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

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