Nature and Effect of Obligations
Nature and Effect of Obligations
Nature and Effect of Obligations
OF OBLIGATIONS
Example –
A obliged herself to deliver a determinate horse to B on
June 20 this year. A failed to delivered on the agreed date,
Is A already on delay on June 20? only when Tito makes
a judicial or extra-judicial demand and from such date
of demand when Gaya is on default or delay.
However, there are instances when the
demand by the Creditor is not necessary to
place the debtor on delay:
Note: C.B. Circular No. 905 suspends the ceilings in the usury law.
Hence, parties can agree as to the rate of interest.
Kinds of interest
1. Conventional *The rate which is agreed upon by the
parties.
2. Legal Interest *The rate which is prescribed by law.
3. Lawful Interest *The rate which is agreed upon by the
parties but which rate is within the
rate authorized by law.
4. Usurious Interest *The rate which is in excess of the
maximum rate of interest allowed by
law.
ART. 1176.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.