.

Deflation- is the reduction in volume and circulation of the available money or

credit, resulting in a decline of the general price level; it is the opposite of
inflation.
Ex. Ria borrowed from Emi P5,000.00 payable after five years. On the maturity of
the obligation, the value of P5,000.00 Art. 1251. Payment shall be made in the
place designated in the obligation.
There being no express stipulation and if the undertaking is to deliver a
determinate thing, the payment shall be made wherever the thing might
be at the moment the obligation was constituted.
In any other case the place of payment shall be the domicile of the debtor.
If the debtor changes his domicile in bad faith or after he has incurred in
delay, the additional expenses shall be borne by him.
These provisions are without prejudice to venue under the Rules of Court.
(1171a)
Places where obligation shall be paid:
1

If there is stipulation, the payment shall be made in the palce designated.

(par. 1, Art 1306)

If there is a stipulation and the thing to be delivered is specific, the payment

shall be made at the place where the thing was, at the perfection of the
contract. (par. 2)

If there is no stipulation and the thing to be delivered is generic, the place of

payment shall be the domicile of the debtor.

Venue- is the place where a court suit or action must be filed or instituted. (Secs.
1-4, Rule 4, rules of Court)
Domicile- is the palce of a persons habitual residence (Art. 50), the place where
he has his true fixed permanent home and to which place he, whenever he is
absent, has the intention of returning. (17 Am. Jur. 588).
Residence- is only an element of domicile. It simply requires bodily presence as
an inhabitant in a given place.
Ex. Lleina is obliged himself to deliver to Karl a specific car. It was agreed that
the car should be delivered at Karls house. The house of Karl shall be the
place of delivery.

SUBSECTION 1. - Application of Payments

Art. 1252. He who has various debts of the same kind in favor of one and
the same creditor, may declare at the time of making the payment, to
which of them the same must be applied. Unless the parties so stipulate,

or when the application of payment is made by the party for whose benefit
the term has been constituted, application shall not be made as to debts
which are not yet due.
If the debtor accepts from the creditor a receipt in which an application of
the payment is made, the former cannot complain of the same, unless
there is a cause for invalidating the contract. (1172a)
Application of payments- is the designation of the debt to which should be
applied a payment made by a debtor who owes several debts in favor of the
same creditor. (Art. 1252,par. 1)
It is important to know the rules on application of payments because otherwise,
we may not know which one, of two or more debts, has been extinguished.
Requisites of Application of Payments:
1

One debtor and one creditor

dropped to P2,500.00 because of inflation (or increased to P10,000.00 because of

deflation).
In this case (assuming there is extraordinary inflation or deflation), the
basis of payment shall be equivalent value of the currency today to
that five years ago. Hence, Ria is liable to pay Emi P5,000.00 (or
P2,500.00) unless there is an agreement to the contrary.
Limitations, p. 4]. With particular reference to the Constitution of the Philippines: That written instrument
enacted by direct action of the people by which the fundamental powers of the government are established,
limited and defined, and by which those powers are distributed among the several departments for their
safe and useful exercise for the benefit of the body politic [Malcolm, Philippine Constitutional Law, p. 6].

a)

Written or unwritten. Awritten constitution is one whose precepts are

embodied in one document or set of documents; while an unwritten
constitution consists of rules which have not been integrated into a single,
concrete form but are scattered in various sources, such as statutes of a
fundamental character, judicial decisions, commentaries of publicists,
customs and traditions, and certain common law principles [Cruz,
Constitutional Law, pp. 4-5].

b)

Rigid or Flexible. A rigid Constitution is one that can be amended only by a

formal and usually difficult process; while a flexible Constitution is one that
can be changed by ordinary legislation [Cruz, ibid., p. 5].