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.
- The signers cannot rely on Article 6 to validate prejudice to the third person's recognized right.
- The clause necessarily binds every nonparty because two persons signed.
- A third person's right vanishes whenever settlement saves money.
- Only the clause's title matters.
- 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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