Practice question
A registered workers’ association changes its name in compliance with a lawful directive. A creditor argues that the change erased the association and discharged its debt. Which principle applies?
- The employer automatically assumes every debt
- A new name always cancels debts
- Only members’ wages survive
- The organization’s obligations continue under its new name
- The creditor must accept cancellation of all obligations
Legal references
- Samahan ng Manggagawa sa Hanjin Shipyard v. BLR, GR 211145, October 14, 2015, main decision: https://lawphil.net/judjuris/juri2015/oct2015/gr_211145_2015.html
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