Legal Interest on Unpaid Debt in the Philippines: How Is It Computed?
Understand contractual interest, interest as damages, the 6% legal rate framework, and the dates needed for an accurate computation.
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Joint vs Solidary Obligations: Who Can Be Made to Pay?
Learn whether a creditor may collect only a debtor’s share or the whole obligation, and what happens after one solidary debtor pays.
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Condonation or Remission of Debt: Meaning, Requisites and Article 1270
Learn when a creditor legally forgives a debt, what acceptance and form are required, and how remission affects security and guarantors.
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Novation of a Contract or Debt: When Is the Old Obligation Replaced?
Understand when changing parties or terms creates novation, when the old obligation survives, and what evidence proves replacement.
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Compensation or Setoff: When Do Mutual Debts Cancel Each Other?
Learn when two parties who owe each other may offset their debts, the legal requirements, exclusions and evidence needed.
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Dation in Payment: Can Property Be Given Instead of Cash?
Understand when a creditor may accept property instead of money and what documents, valuation and transfer requirements protect both parties.
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Tender of Payment and Consignation: What if the Creditor Refuses?
Understand how tender and consignation can release a debtor when valid payment is unjustifiably refused or cannot safely be made.
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Can Someone Else Pay Your Debt? Third-Party Payment Rules
Learn when another person may pay a debt, what reimbursement they may demand, and when subrogation or debtor consent matters.
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Application of Payments: Which Debt Does Your Payment Cover?
When several debts exist, learn who chooses which debt is paid and how Articles 1252–1254 allocate an undesignated payment.
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What Happens if Payment Is Made to the Wrong Person?
Understand when payment to someone other than the creditor is valid, when it benefits the creditor, and what the debtor must prove.
