Practice question
Which situation most directly raises the non-impairment clause's concern?
- Two parties voluntarily settle their dispute
- A debtor fails to pay without any change in law
- A creditor voluntarily waives interest
- Parties sign their first agreement under existing legal restrictions
- A later law changes obligations under an existing valid contract
Legal references
- 1987 Constitution, Article III, Section 10, non-impairment of contractual obligations: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/3/353
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