Practice question
An enforceable personal agreement covers only a specified dismissal settlement. A claimant seeks to use it as an automatic guarantee of unrelated awards for different employees, without wording or other basis extending coverage. Which is best?
- One personal undertaking necessarily covers every debt forever.
- The actual undertaking’s scope must be established; the specified promise is not an unlimited guarantee of every corporate labor debt.
- The creditor may disregard the identified obligation.
- Any officer’s settlement automatically guarantees all future lawsuits.
- Corporate debts cannot be described specifically.
Legal references
- Team Pacific Corp. v. Parente, G.R. No. 206789, July 15, 2020, main decision, corporate-liability exceptions: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/66895
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