Practice question
Two fully capable parties knowingly settle an already accrued, identified private damages claim. The settlement is valid, voluntary, and contrary to no law or policy, and no third-person right is prejudiced. Is it necessarily void merely because Article 1171 prohibits a waiver for future fraud?
- Yes, every settlement is a future-fraud waiver.
- Yes, no accrued damages claim may ever be compromised.
- No, the stipulated lawful settlement of an existing claim is distinct from a prohibited advance waiver of future fraud.
- Yes, every release creates a crime.
- No, because Article 6 has no limits at all.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 6 and1171.
- https://lawphil.net/statutes/repacts/ra1992/ra_7394_1992.html — RA 7394, article106: prohibited exoneration clauses for the specified consumer damages.
- https://lawphil.net/judjuris/juri2017/mar2017/gr_164749_2017.html — Abrogar v Cosmos Bottling, GR 164749, March 15 2017, main opinion: waiver and assumption-of-risk issues in the negligence setting.
Answer this question in flashcards to review your response and continue practicing.