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    Case Digest - Reyes Vs Zaballero

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    Valencia and Valencia Office
    Cesar Reyes made a loan to Agripino Zaballero in 1942 secured by a mortgage on land. Zaballero paid the installments due in 1942-1943 in devalued Japanese military scrip, which Reyes accepted. In 1944, Zaballero offered to pay the remaining balance in the same scrip, but Reyes refused, demanding payment in Philippine or US currency instead. When Reyes remained firm in his refusal, Zaballero paid the full remaining balance the next day. Reyes reluctantly accepted the payment on the advice of his attorneys and executed a deed releasing the mortgage. After liberation, Reyes sued to recover the debt, claiming duress, but both lower courts ruled

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    Case Digest - Reyes Vs Zaballero

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    Valencia and Valencia Office
    154 views1 page
    Cesar Reyes made a loan to Agripino Zaballero in 1942 secured by a mortgage on land. Zaballero paid the installments due in 1942-1943 in devalued Japanese military scrip, which Reyes accepted. In 1944, Zaballero offered to pay the remaining balance in the same scrip, but Reyes refused, demanding payment in Philippine or US currency instead. When Reyes remained firm in his refusal, Zaballero paid the full remaining balance the next day. Reyes reluctantly accepted the payment on the advice of his attorneys and executed a deed releasing the mortgage. After liberation, Reyes sued to recover the debt, claiming duress, but both lower courts ruled

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    Case Digest in Law on Obligations and Contracts

    Original Title

    Case Digest - Reyes vs Zaballero

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    Cesar Reyes made a loan to Agripino Zaballero in 1942 secured by a mortgage on land. Zaballero paid the installments due in 1942-1943 in devalued Japanese military scrip, which Reyes accepted. In 1944, Zaballero offered to pay the remaining balance in the same scrip, but Reyes refused, demanding payment in Philippine or US currency instead. When Reyes remained firm in his refusal, Zaballero paid the full remaining balance the next day. Reyes reluctantly accepted the payment on the advice of his attorneys and executed a deed releasing the mortgage. After liberation, Reyes sued to recover the debt, claiming duress, but both lower courts ruled

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    154 views1 page

    Case Digest - Reyes Vs Zaballero

    Uploaded by

    Valencia and Valencia Office
    Cesar Reyes made a loan to Agripino Zaballero in 1942 secured by a mortgage on land. Zaballero paid the installments due in 1942-1943 in devalued Japanese military scrip, which Reyes accepted. In 1944, Zaballero offered to pay the remaining balance in the same scrip, but Reyes refused, demanding payment in Philippine or US currency instead. When Reyes remained firm in his refusal, Zaballero paid the full remaining balance the next day. Reyes reluctantly accepted the payment on the advice of his attorneys and executed a deed releasing the mortgage. After liberation, Reyes sued to recover the debt, claiming duress, but both lower courts ruled

    Copyright:

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    of 1

    CESAR REYES, PETITIONER-APPELLANT, VS. AGRIPINO ZABALLERO, ET AL.

    , RESPONDENTS-APPELLEES

    G.R. NO. L-3561 MAY 23, 1951

    PONENTE: BENGZON, J.

    DOCTRINE

    Mere reluctance does not detract from the voluntariness of one's act.

    There is duress or intimidation when one of the concentrating parties is inspired by a rational and well-
    grounded fear of suffering an imminent and serious injury to his person or property, or to the person or
    property of his spouse, descendants or ascendants. (Art. 1267, Civil Code.)

    FACTS

    Reyes made a loan to Zaballero on October 1, 1942 amounting to P6,500 with interest at 10% per annum
    payable in advance. Zaballero secured the payment with a first mortgage on 10 parcels of land situated in
    Lucena, Quezon Province. The installments due for 1942 and 1943, totalling the sum of P1,300 plus
    interest were paid in Japanese Military Scrip and the payments were unreservedly accepted. On
    November 30, 1944, Zaballero offered to pay the third installment and its interest which fell due in
    October 1944. Reyes refused to accept on the ground that it was immoral and unjust that the payment
    be made in Japanese military notes which had considerably devaluated, and that he had an option
    according to the contract to have the payment made in Philippines or United States currency. As Reyes
    remained adamant in his refusal, Zaballero announced that the next day that he would tender the whole
    balance of P5,812, which he did by way of complete satisfaction of the entire indebtedness. Reyes, acting
    upon advice given by his attorneys, received the money and executed on December 1, 1944, the notarial
    deed of release of the real estate mortgage which was registered in the following day at the Register of
    Deeds. On the same day that he received payment, Reyes executed an affidavit in secret, without
    defendants' knowledge, before Notary Public Alfredo Bonus (who also ratified the deed of release) stating
    that he had accepted under protest and bound by current circumstances, the payment of P5,200 plus
    interest in the sum of P612, and that he had deposited the whole amount in the Philippine National Bank
    which remained untouched to this day. After liberation he sued for recovery of the debt, contending that
    his acceptance of the money was invalidated by duress. Both the lower court and the CA ruled in favor of
    Zaballero and declared that Reyes received the money without any duress or protest.

    ISSUE

    Whether or not the payment made by Zaballero was voluntarily accepted

    RULING

    Yes. The Court held that, although Cesar Reues accepted the money reluctantly, the same does not detract
    from the voluntariness of his act. The Court reiterated the ruling in Vales vs. Villa that “"There must, then,
    be a distinction to be made between a case where a person gives his consent reluctantly and even against
    his good sense and judgment, and where he, in reality, gives no consent at all, as where he executes a
    contract or performs an act against his will under a pressure which he cannot resist.”

    The Court affirmed the decision of CA, concurring on the finding that payment was voluntarily accepted.

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