| Front | VI. a) Siga-an granted a loan to Villanueva in the amount of P540,000.00. Such agreement was not reduced to writing. Siga-an demanded interest which was paid by Villanueva in cash and checks. The total amount Villanueva paid accumulated to P1,200,000.00. Upon advice of her lawyer, Villanueva demanded for the return of the excess amount of P660,000.00 which was ignored by Siga-an. 1. Is the payment of interest valid? Explain. (3%) 2. Is solutio indebiti applicable? Explain. (2%) |
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| Back | SUGGESTED ANSWER: 1. No. Article 1956, Civil Code, provides that "no interest shall be due unless it has been expressly stipulated in writing." 2. Yes, solutio indebiti is applicable because Villanueva overpaid by P660,000 representing interest payment which is not due. He can, therefore, demand its return. |
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