Ma. Concepcion L.

Drilon

BAMM 302

Romantic Catholic of Malolos vs IAC 191 SCRA 411

Facts and Summary

Petitioner was the owner of a parcel of land. It then entered into a contract of lease
agreement with Robes- Fransisco Realty for the parcel of land. The agreement that there would
be down payment plus installments with interest. Robes-Fransisco was then in default. Knowing
that it was in its payment of the installments, it requested for the restructuring of the installment
payments but was denied. It then asked for grace period to pay the same and tendered a check
thereafter. Such was refused and the contract was cancelled.

Issue:

Whether or not he finding of the IAC that Atty. Francisco had sufficient available funds
did tender payment for the said obligation and whether an offer of a check is valid tender of
payment of an obligation under a contract which stipulates that the consideration of the sale is in
Philippine Currency.

Ruling

No. Tender of payment involves a positive and unconditional act by the obligor of
offering legal tender currency as payment to the obligee for the former’s obligation and
demanding that the latter accept the same.. As this is the case, the subsequent consignation of the
check didn’t operate to discharge Robes-Fransisco from its obligation to petitioner.

Mode of Extinguishing an Obligation

By payment - it was agreed upon with the petitioner that a finding that the private
respondent had sufficient available funds on or before the grace period for the payment of its
obligation and it does not constitute proof of tender of payment by the latter for its obligation
within the said period. Thus, payment shall be made to the petitioner since he was in favor with
the obligation being constituted and the private respondents should deliver the money agreed
upon.
Ma. Concepcion L. Dilorn

BAMM 302

New Pacific Thing vs Señaris

Facts and Summary

Ricardo A. Tong filed a complaint to New Pacific Timber & Supply Co. Inc for a
collection of money. According to the parties' amicable settlement in this complaint, the
respondent judge awarded a compromise decision, out of which the petitioner would pay the
private respondent P54,500.00 at 6% interest per year and P6,000.00 as attorney's fees, of which
P5,000.00 has already been paid. The properties were sold to the highest bidder for P50,000.00,
leaving a P13,130.00 shortfall. The respondent Judge rejected the petitioner's subsequent ex-
parte move for the issuing of a certificate of satisfaction of judgment. Thus, the current petition,
which claims that the respondent Judge abused his discretion by refusing to grant the requested
motion because the petitioner's deposit to the Ex-Officio Sheriff properly completed the
judgment requirement prior to the auction sale. In sustaining the private respondent's rejection
The provision states that a creditor cannot be forced to accept partial payment unless there is an
express agreement to the contrary.

Issue

Is the check acceptable as satisfying the judgment debt?

Ruling

Yes. It is important to note that it is common knowledge and accepted practice in the
business world to treat cashier's checks as currency. Additionally, because the check has been
certified by the drawee bank, this certification suggests that the funds will be used whenever the
check is given for payment and that there is sufficient funding for the check in the drawee bank.

Mode of Extinguishing an Obligation

 By payment. Both cash and a cashier's check are acceptable forms of payment for the
petitioner's obligation. The private respondent lacks a legitimate reason to object to the check
and cash being accepted as full payment of the obligation.