Practice question
A contracting company stops performing its own obligations and then treats the other party’s separate employment resignation as breach of a talent agreement, without examining its terms. What must the court do?
- Treat every outside job as criminal conduct
- Assume the plaintiff’s characterization is conclusive
- Automatically award the stated contract penalty
- Ignore the company’s own nonperformance
- Examine the actual obligations, performance and distinct relationships
Legal references
- Civil Code, Articles 19-23, 26, 28, 31-33, 1314, 2177, 2183 and 2187: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- GMA Network, Inc. v. Cruz-Valdes, G.R. No. 205498, May 10, 2021, MAIN decision: https://lawphil.net/judjuris/juri2021/may2021/gr_205498_2021.html
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