TRIAL BRIEF/JURISPRUDENCE

LEGAL BASES:

Art. 1231. Obligations are extinguished:

(1) By payment or performance;

(2) By the loss of the thing due;

(3) By the condonation or remission of the debt;

(4) By the confusion or merger of the rights of creditor and debtor;

(5) By compensation;

(6) By novation.

Other causes of extinguishment of obligations, such as annulment,

rescission, fulfillment of a resolutory condition, and prerscription, are
governed elsewhere in this Code.

Art. 1241. Payment to a person who is incapacitated to administer his

property shall be valid if he has kept the thing delivered, or insofar as the
payment has been beneficial to him.

Payment made to a third person shall also be valid insofar as it has

redounded to the benefit of the creditor. Such benefit to the creditor need not
be proved in the following cases:

(1) If after the payment, the third person acquires the creditor’s rights;
(2) If the creditor ratifies the payment to the third person;
(3) If by the creditor’s conduct, the debtor has been led to believe that
the third person had authority to receive the payment.

Art. 1242. Payment made in good faith to any person in possession of the
credit shall release the debtor.
If the thing loaned is money, payment must be made in the currency
stipulated, if it is possible to deliver such currency; otherwise, it is payable
in the currency which is legal tender in the Philippines (Art. 1249 of NCC)
and in case of extra-ordinary inflation or deflation, the basis of payment
shall be the value of the currency at the time of the creation of the
obligation. (Art. 1250 of NCC)

Art. 1956. No interest shall be due unless it has been expressly stipulated in
writing.