Penalty Clauses in Philippine Contracts: Can the Amount Be Reduced?
Understand when a contractual penalty replaces damages and interest, when additional recovery is possible, and when courts may reduce it.
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Can a Court Reduce Excessive or Unconscionable Interest?
Understand why lifting statutory interest ceilings did not remove judicial review of unconscionable rates and oppressive loan charges.
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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.
