Beruflich Dokumente
Kultur Dokumente
FROM : ACB
SUBJECT : RELATED LAWS AND JURISPRUDENCE GOVERNING
COLLETIONS OF SUM OF MONEY
DATE : 8 MAY 2015
Article 1953 of the Civil Code of the Philippines (CCP), provides that
a person who receives a loan of money or any other fungible thing acquires the
ownership thereof and is bound to pay to the creditor an equal amount of the
same kind and quality. The obligation of one person who borrows money is
governed by the provisions of Article 1249 and 1250 of the Civil Code of the
Philippines. According to Article 1249, the payment of debts in money shall be
made in the currency stipulated and if it is not possible to deliver such
currency, then in the currency which is legal tender in the Philippines.
Furthermore, promissory notes payable to order or bill of exchange or other
mercantile documents shall only produce effect of payment if and only if they
have been cashed. In some instance, effect of payment is considered when the
documents have been impaired through the fault of the creditor. Article 1250
contemplates a case of extraordinary inflation or deflation of the currency
stipulated. It provides that the value of the currency at the time of the
establishment of the obligation shall be the basis of payment, unless there is
an agreement to the contrary.
If a debtor fails to comply with his obligation, the creditor shall have
the right to institute an action against him for the collection of his
indebtedness. The right to institute an action against a debtor is also subject
to conditions set by law. One of which is the period of time given within which a
creditor must enforce his right. The failure to file a case within such period
shall result in the prescription of right of action for the collection of
indebtedness. Furthermore, an Immature filing of complaint for collections of
sum of money to an obligation not yet due and demandable will also constitute
as a ground for dismissal by the court. Below are the provisions found in
Section 2, Chapter III, Book IV of the Civil Code governing obligation with a
period:
If, however, parties only orally agreed upon the loan, the action may
still be enforced but it shall be considered to have prescribed after the
lapse of six (6) years.
Art. 1956. Provides that No interest shall be due unless it has been
expressly stipulated in writing. The interest referred in Art. 1956 is interest for
the use of money. The interest must be clearly and categorically written within
the agreement. The stipulation of an interest and absence of the specific rate,
however, shall not affect the validity of such stipulation. The interest shall be
considered to be the present legal interest in the country which is 6 % per
annum
A creditor may only file an action for the collection of sum of money
before the court when the debt is already due and demandable and there is
failure of payment on the part of the debtor. But before resorting to filing a
case, a demand letter is important. Demand letters will ensure that the
debtor is reminded of his obligation and that he shall be given the chance to
pay his debt without resorting to a full blown trial. Demand Letters also serve
as compelling evidence that the creditor formally demanded payment of the
debt due.
In case of joinder of causes of action where the claims are principally for
recovery of money, Section 5, Rule 2 of the 1997 Rules of Civil Procedure
provides that the aggregate amount claimed shall be the test of jurisdiction.