The receipt of the principal by the creditor,without reservation with respect to the interest,shall give rise to the presumption that said interest has been paid. The receipt of a later installments of a debt without reservation as to prior installments,shall likewise raise the presumption that such installments have been paid.
Presumption
Definition o
Meaning the inference (act or process of conducting from evidence or premises)of a fact not actually known arising from its usual connection with another which known or proved.
Kinds o
o
Conclusive presumption - one which cannot be contradicted. Disputable (or rebuttable) presumption - one which can be contradicted by presenting proof to the contrary.
Example:
Article 1176 para.1 Mr. A borrowed the amount of 5000 from Mr.B with the interest rate of 5% per month. After three months, A paid 5000 50 00 to Mr.B as payment for fo r the principal amount amou nt borrowed. Mr. B recieved the amount without making any reservation as to the collection of interest. Presumption: As if Mr.A paid the interest before the principal.
Article 1176 para.2 Mr X borrowed P15000 from Mr. Y payable by installment within three months in the amount of P5,000 per month. Ist month- Not paid 2nd month- Mr.Y received the amount of 5000 for the 2nd month without making any reservation as to the collection of the first installment. Presumption: Mr.X is presumed to have paid the first installment
Article 1177 Rights of the Creditors
to levy attachment and execution upon all the property of the debtor, with exceptions
to exercise all the rights and actions of the debtor, except such are inherently personal to him
to ask for the rescission of the contracts made b y the debtor in fraud of their rights Article 1178
GENERAL RULE: All rights are transmissible. EXCEPTIONS: If the law/ contract provides otherwise; obligation is purely personal.
