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Oblicon Report

The document discusses various concepts related to obligations and contracts: 1. It outlines presumptions related to payment of interest and installments based on Article 1176 of the Civil Code. Receiving the principal without reserving interest creates a presumption interest was paid. 2. It defines two types of presumptions - conclusive and disputable. Article 1176 establishes disputable presumptions that can be rebutted by evidence. 3. Examples are provided to illustrate how the presumptions in Article 1176 apply in different situations related to payment of debts. 4. Exceptions to when the Article 1176 presumptions do not apply are explained, such as when there is a reservation or receipt is only for part

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Christian Royd Pantoja
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416 views19 pages

Oblicon Report

The document discusses various concepts related to obligations and contracts: 1. It outlines presumptions related to payment of interest and installments based on Article 1176 of the Civil Code. Receiving the principal without reserving interest creates a presumption interest was paid. 2. It defines two types of presumptions - conclusive and disputable. Article 1176 establishes disputable presumptions that can be rebutted by evidence. 3. Examples are provided to illustrate how the presumptions in Article 1176 apply in different situations related to payment of debts. 4. Exceptions to when the Article 1176 presumptions do not apply are explained, such as when there is a reservation or receipt is only for part

Uploaded by

Christian Royd Pantoja
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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OBLIGATION

AND
CONTRACTS
CONT.

ANGULO MORELOS

DESPABILADERAS RAPISURA

DURAN YANG
FULFILLMENT OF OBLIGATION

• Payment
PRESUMPTIONS IN PAYMENT OF INTERESTS AND
INSTALLMENTS

• ART. 1176. The receipt of the principal by the creditor, without


reservation with respect to the interest, shall give rise to the
presumption that said interest has been paid.
• The receipt of a later installment of a debt without reservation
as to prior installments, shall likewise raise the presumption
that such installments have been paid.
GENERAL RULE

• If the debt produces interests, payment of the principal shall not


be deemed to have been made unless the interests have been
covered.
PRESUMPTION

• By presumption is meant the inference of a fact not actually


known arising from its usual connection with another which is
known or proved
• Presumptions are rebuttable by evidence
EXAMPLE OF PRESUMPTION

• D borrowed P1,000.00 from C. Later, D shows a receipt signed


by C. The fact not actually known is the payment by D. The fact
known is the possession by D of a receipt signed by C.
• The presumption is that the obligation has been paid unless
proved otherwise by C as, for example, that D forced C to sign
the receipt.
TWO KINDS OF PRESUMPTION.

1. Conclusive presumption - one which cannot be contradicted


like the presumption that everyone is conclusively presumed
to know the law.
EXAMPLE

• B owes C the amount of P10,000.00 with interest at 14% a year. C issued a receipt for
the principal. The interest was not referred to in the payment whether or not it has been
paid.
• It is presumed that the interest has been previously paid by B because normally the
payment of interest precedes that of the principal.This, however, is only a disputable
presumption and may be overcome by sufficient evidence that such interest had not
really been paid.
TWO KINDS OF PRESUMPTION.

2. Disputable (or rebuttable) presumption - one which can be


contradicted or rebutted by presenting proof to the contrary
like the presumption established in Article 1176.
EXAMPLE

• E is a lessee in the apartment of R, paying P5,000.00 rental a month, E failed to pay the
rent for the months of February and March. In April, E paid P5,000.00 and R issued a
receipt that the payment is for the month of April.
• The presumption is that the rents for the months of February and March had already
been paid. This is also in accordance with the usual business practice whereby prior
installments are first liquidated before payments are applied to the later installments.
Again, this presumption is merely disputable.
WHEN PRESUMPTIONS IN ARTICLE 1176 DO NOT
APPLY
1. With reservation as to interest - The presumptions established in Article 1176 do not
arise where there is a reservation as to interest or prior installments, as the case may
be. The reservation may be made in writing or verbally.
2. Receipt for a part of principal - The first paragraph of Article 1176 only applies to the
receipt of the last installment of the entire capital, not to a mere fraction thereof. This
is logical. A receipt for a part of the principal, without mentioning the interest, merely
implies that the creditor waives his right to apply the payment first to the interest and
then to the principal, as permitted by Article 1253. Only when the principal is fully
receipted for, may failure to reserve the claim for interest give rise to the presumption
that said interest has been paid.
WHEN PRESUMPTIONS IN ARTICLE 1176 DO NOT
APPLY
3. Receipt without indication of particular installment paid - It has been held that the
presumption in paragraph 2, Article 1176 is not applicable if the receipt does not recite
that it was issued for a particular installment due as when the receipt is only dated.
Thus, in the preceding example, the fact alone that the receipt issued by R is dated
April 5, does not justify the inference that the rents for February and March had been
paid.
4. Payment of taxes - Article 1176 does not apply to the payment of taxes. Taxes payable by
the year are not installments of the same obligation.
5. Non-payment proven - Of course, Article 1176 is not applicable where the non-payment
of the prior obligations has been proven. Between a proven fact and a presumption pro
tanto, the former stands, and the latter falls.
TRANSMISSIBILITY OF RIGHTS

• Art 1178 Subject to the laws, all rights acquired in virtue of an


obligation are transmissible , if there has been no stipulation to
the contrary.
EXEPTION

1. Prohibited by law. — When prohibited by law, like the rights


in partnership, agency, and commodatum which are purely
personal in character.
a. By the contract of partnership, two or more persons bind
themselves to contribute money, property or industry to a
common fund, with the intention of dividing the profi ts among
themselves.
EXEPTION

b. By the contract of agency, a person binds himself to render


some service or to do something in representation or on
behalf of another, with the consent or authority of the latter.
c. By the contract of commodatum, one of the parties
delivers to another something not consumable so that the
latter may use the same for a certain time and return it.
Commodatum is essentially gratuitous
EXEPTION

2. Prohibited by stipulation of parties. — When prohibited by stipulation


of the parties, like the stipulation that upon the death of the creditor,
the obligation shall be extinguished or that the creditor cannot assign
his credit to another. The stipulation against transmission must not be
contrary to public policy. Such stipulation, being contrary to the general
rule, should not be easily implied, but must be clearly proved, or at the
very least, clearly inferable from the provisions of the contract itself.
FACULTATIVE OBLIGATION

• ART. 1206. When only one prestation has been agreed upon, but the
obligor may render another in substitution, the obligation is called
facultative.
• The loss or deterioration of the thing intended as a substitute,
through the negligence of the obligor, does not render him liable.
But once the substitution has been made, the obligor is liable for the
loss of the substitute on account of his delay, negligence or fraud.
MEANING OF FACULTATIVE OBLIGATION

• A facultative obligation is one where only one prestation has


been agreed upon but the obligor may render another in
substitution.
DISTINGUISHED FROM ALTERNATIVE OBLIGATION

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