Practice question
An asset purchaser expressly undertakes a specified seller debt in a valid agreement. It argues that the general non-assumption rule makes the undertaking legally irrelevant. Which is correct?
- The undertaking can never matter.
- Express assumption is itself a recognized exception to the general rule.
- Only implied assumptions can ever count.
- The buyer can erase the clause by citing its corporate name.
- Every agreement automatically releases the original debtor.
Legal references
- Y-I Leisure v. Yu, GR207161, September8 2015, main decision: https://lawphil.net/judjuris/juri2015/sep2015/gr_207161_2015.html
- RA11232, RCC, Sections39 and73–74: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463
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