Thursday, October 28, 2010

The Philippine Supreme Court reiterated as null and void, a quitclaim executed by a seafarer releasing and discharging his employer from all claims, demands, causes of action, and the like in an all-encompassing manner, including the fact that he had not contracted or suffered any illness or injury in the course of his employment and that he was discharged in good and perfect health. These stipulations clearly placed the employee in a disadvantageous position vis-รก-vis the employers. The Court said it is never enough to assert that the parties have voluntarily entered into such a quitclaim. There are other requisites: (a) that there was no fraud or deceit on the part of any of the parties; (b) that the consideration of the quitclaim is credible and reasonable; and (c) that the contract is not contrary to law, public order, public policy, morals or good customs, or prejudicial to a third person with a right recognized by law. (Varorient Shipping Co., Inc., et al. vs. Gil A. Flores, G.R. 161934, October 6, 2010)

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