Agas company filed a case against a corporation for collection of a sum of money. The Regional Trial Court (RTC), affirmed by the Court of Appeals (CA), ordered the corporation to pay the gas company P103,659.44 with legal interest. Little did it know that while the case was ongoing, the corporation entered into an agreement with a transport corporation, which stipulated that the transport corporation would assume all the obligations of the corporation.

The gas company found it difficult to satisfy the judgment of the court because all the remaining property of the corporation was previously foreclosed by the corporation’s creditors. Upon discovery that the transport corporation agreed to assume all the obligations of the corporation, it filed a case for collection of sum of money against the transport corporation with the RTC.

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