Practice question
Buyer acquires one surplus vehicle from a company that continues its ordinary business. No assumption, merger, continuation, fraud, or other applicable basis is shown. Does the vehicle purchase alone establish liability for all seller debts under the discussed doctrine?
- No; the stated isolated purchase does not itself establish a recognized exception.
- Yes, ownership of any asset transfers every debt.
- Yes, the seller automatically disappears.
- Yes, the parties merge whenever property changes hands.
- Yes, every seller creditor becomes a buyer shareholder.
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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