Cabangon L-130147, 3F Legal Counselling August 2, 2016
Clients Legal Problem
The client named John, 26 years of age and a call center agent, is indebted to a man named Raul who is in the business of lending money. John and Raul entered into a contract wherein Raul will lend 18,000 pesos to John and it shall be payable in six monthly installments, and if John fails to pay at least three monthly installments the entire debt shall be collectible immediately. Unfortunately, John was not able to pay three monthly installments of 3,000 pesos, which rendered the whole amount he owed collectible as agreed upon. The creditor, a few days after, barged into his house and commenced to forcibly take his appliances and furniture as payment for the money he owed him. John now asks if the action of this man is legal. Legal Advice and Legal Basis I would tell John that in the given scenario there is no doubt that that man who lent him the money amounting to 18,000 pesos has the right to oblige him to pay, bearing in mind that the loan that the creditor extended to John is already due and demandable. Contractual ties give rise to obligations on the part of the contracting parties. These obligations arising from contracts have the force of law between the contracting parties and each party is bound to comply in good faith (Article 1159, Civil Code). Thus, the terms and conditions conveyed in the contract becomes the law between the parties and a source of right to demand performance of the obligation from the other party. However, there are methods permitted by law on how this man can collect the loan from John. One of the ways to claim payment of debt is to demand payment in person or through a letter. An alternative one is by bringing the problem before the Katarungang Pambarangay, in case both John and the creditor live in the same barangay (village), city or municipality given that it is a compulsory mediation process and almost all civil disputes and many crimes with potential prison sentences of less than one year or fines less than 5,000 Philippine pesos are subjected to the system. If no settlement has been reached, then, lastly, the creditor may file a case against John in the regular judicial system of the Philippines. On the other hand, the method which the creditor used in collecting the payment of the debt is not in harmony with our law. In a sense, the creditor took the law into his own hands i.e. in that he is without authority of law or has no right to act, and by means of force compelled the debtor to do something against his will. In actual fact, what the creditor did is liable to be punished by under the Revised Penal Code of the Philippines, to wit: Art. 287. Light coercions. Any person who, by means of violence, shall seize anything belonging to his debtor for the purpose of applying the same to the payment of the debt, shall suffer the penalty of arresto mayor in its minimum period and a fine equivalent to the value of the thing, but in no case less than 75 pesos. I will make it essential to mention that this advice is specially based on the facts that the client has narrated and my appreciation of the same. I will
further express that this legal advice may vary when the facts are to be changed or elaborated by the client.