TO: Atty.

Christine Joy T Viray, Viray and Associates

FROM: Atty. Jameil B. De los Reyes, Junior Associate

SUBJECT: Collection of Sum of Money

Jane Uy v. Raymund Masmela

DATE: December 27, 2017

Issue: Whether the debtor is entitled to pay the sum of Ten Million

Pesos in cash, to the creditor which constitute a violation to

Article 1953 of the Civil Code of the Philippines 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.

Yes, according to the Civil Code of the Philippines (CCP),

Article 1953 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.

FACTS:

Raymund P. Masmela respectfully manifests, without admitting

liability or waiving any of his rights or defences, that he is open to any

reasonable proposal for amicable settlement from Jane Uy for referral of

the case to alternative modes of dispute resolution, including mediation and

or judicial dispute resolution.

 On 15 March 2015, Defendant came in to Plaintiff’s residential home

to borrow from the Plaintiff money amounting to Ten Million Pesos

(P10,000,000.00) and promised to pay in twelve (12) months after the

day the money is delivered.

Since Defendant is a long-time friend of the Plaintiff, Plaintiff agreed

with the said condition and agreed that there will be no interest imposed on

the amount of money borrowed. On the next day, the Plaintiff delivered the

money in the Defendant’s residence in Zarraga, Iloilo.

On July 20, 2016, the sum of money borrowed by the

Defendant became due and demandable as stipulated by both parties.

However, the Defendant failed to appear in the Residential home of the

Plaintiff for the payment of the said amount.

On September 23, 2017, Plaintiff, through her counsel then

instituted a Demand letter to compel the Defendant to pay the said amount

in cash. The Plaintiff herself delivered in the residence of the Defendant.

Since the Defendant was not present in the residence that day, the demand

letter was received by the wife of the Defendant, Gina Masmela.

 However, Defendant claims that he paid the said amount to

Plaintiff’s house helper and further claims that Plaintiff was not around in

her home the said day of July 27, 2016, and that she did not receive any

Demand letter coming from Plaintiff. Plaintiff claims otherwise as stipulated

in the foregoing, hence this instant case.

DISCUSSION:

Legal Delay, Default or Mora is the failure to perform an obligation on

time, which failure constitutes a breach of obligation. Mora solvendi or the

delay on the part of debtor of his obligation by reason imputable to him

exists when ; there is failure failure of the debtor to perform his (positive)

obligation on the date agreed upon; demand (not mere reminder or notice)

made by the creditor upon the debtor to fulfill, perform, or comply with his

obligation which demand, may be either judicial (when a complaint is filed

in court) or extrajudicial (when made outside of court, orally or in writing);

and failure of the debtor to comply with such demand.

A debtor has the obligation to return to the amount that he

borrowed on the date and time that he and the creditor have agreed upon.

The provisions under Articles 1953 and 1249 of the Civil Code of the

Philippines govern the rules of Collections of Sum of Money.

CLAIM OF THE DEFENDANT AS FOLLOWS:

1. Defendant claims that he paid the said amount to Plaintiff’s house

helper and further claims that Plaintiff was not around in his home.

2. All statements and comments made by Defendants about Plaintiff

were made by the Defendants with good motive and were fair

comments;

3. The Plaintiff has failed to set forth ultimate facts due to

inconsistency of the statements as to the date of the alleged

transactions executed between the parties;

4. The Plaintiff has failed to attached documents to prove that the

Defendants in fact were indebted to the Plaintiff;

5. No act or omission on the part of Defendant either caused or

contributed to whatever injury (if any) the Plaintiff may have

sustained.