Article 1170 of the Civil Code recognizes four kinds of breach: fraud, negligence, delay and contravention of the tenor of the obligation. A checklist of each test, the defenses that defeat a claim, damages, deadlines and what to do next.
Quick answer: A valid acceleration clause may make the remaining loan balance due after the specified default. Enforcement depends on the clause’s wording, the occurrence of the trigger, required notice or demand under Civil Code Articles 1159 and 1169, and waiver through prior conduct, and the lawful computation of principal, interest, penalties, and credits. Governing…
Understand when an ordinary guarantor may require exhaustion of the debtor’s assets and when the creditor can proceed directly.
Understand contractual interest, interest as damages, the 6% legal rate framework, and the dates needed for an accurate computation.
Understand how tender and consignation can release a debtor when valid payment is unjustifiably refused or cannot safely be made.
Learn when payment legally extinguishes an obligation, what counts as complete performance, and which records protect both debtor and creditor.
What a creditor must prove to collect an unpaid debt in the Philippines: evidence checklist, demand, interest and penalty computation, and the defenses that can defeat or reduce the claim.
Understand when legal delay begins under Article 1169, when demand is unnecessary, and what consequences and evidence matter.
Learn when a demand letter is legally required for contract default, when Article 1169 provides exceptions, and what the letter should contain.