G.R. No.

L-47362

December 19, 1940

JUAN F. VILLARROEL, recurrente-apelante,

vs.
BERNARDINO ESTRADA, recurrido-apelado.

On August 9, 1930, Juan Villaroel signed a document in which he declared to pay the
debt of his deceased mother in the amount of P1,000 with legal interest of 12% per
annum.
The Court of First Instance of Laguna ordered Juan Villaroel to pay the amount of
P1,000 with an interest of 12% per annum since August 9, 1930 until full payment
Villaroel appealed.
ISSUE: Whether or not the right to prescription may be waived or renounced.

FACTS:
On May 9, 1912, Alejandro Callao, mother of Juan Villaroel, obtained a loan of P1,000
from spouses Mariano Estrada and Severina payable after seven years.
Alejandra died, leaving Juan Villaroel as sole heir, Spouses Mariano Estrada and
Severina also died, leaving Bernardino Estrada as sole heir.

HELD: Yes, right to prescription may be waived or renounced. As a general rule, when
a debt has already prescribed, it cannot be imposed by the creditor. However, a new
contract which recognizes and assumes the prescribed debt is an exception, for it
would be valid and enforceable. Hence, a person who acknowledges the correctness
of the debt and promises to pay it despite knowing that the debt has already
prescribed, such as the case at bar, waived the benefit of the prescription.