VILLAROEL vs ESTRADA G.R. No.

47362 December 19, 1940

FACTS:
On May 9, 1912, Alejandro Callao, mother of Juan Villaroel, obtained a loan of P1,000 from
spouses Mariano Estrada and Severina payable after seven years.
Alejandra died, leaving Juan Villaroel as sole heir, Spouses Mariano Estrada and Severina also
died, leaving Bernardino Estrada as sole heir.
On August 9, 1930, Juan Villaroel signed a document in which he declared to pay the debt of his
deceased mother in the amount of P1,000 with legal interest of 12% per annum.
The Court of First Instance of Laguna ordered Juan Villaroel to pay the amount of P1,000 with
an interest of 12% per annum since August 9, 1930 until full payment
Villaroel appealed.
ISSUE: Whether or not the right to prescription may be waived or renounced.
HELD: Yes, right to prescription may be waived or renounced. As a general rule, when a debt
has already prescribed, it cannot be imposed by the creditor. However, a new contract which
recognizes and assumes the prescribed debt is an exception, for it would be valid and
enforceable. Hence, a person who acknowledges the correctness of the debt and promises to pay
it despite knowing that the debt has already prescribed, such as the case at bar, waived the benefit
of the prescription.