Practice question
A private company's CBA side agreement clearly and unconditionally grants specified additional bonuses. The company incurs losses and argues that all bonuses are necessarily subject to profits, despite the absence of that term. No separate valid release or legal discharge is established. Under Eastern Telecommunications, which answer is correct?
- Losses automatically write a profit condition into every CBA.
- A CBA bonus is always just a nonbinding suggestion.
- The binding unconditional undertaking cannot be defeated solely by inserting an unagreed profitability condition.
- Every bonus obligation necessarily disappears when a company says funds are limited.
- The employees automatically acquire the company's assets.
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/21642 — Eastern Telecommunications Philippines, Inc. v. Eastern Telecoms Employees Union, GR 185665, February 8, 2012, main decision.
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