Sunday, July 9, 2023

Case Digest: Banez vs Young, G.R. No. L-4635

Banez vs Young, GR No L-4635, October 27, 1952

Subject: Obligations and Contracts

FACTS

Vicente Banez is the plaintiff-appellant in this case while Carlos young was the defendant-appellee.

The plaintiff, Vicente Banez, filed a complaint against the defendant, Carlos Young, in the Manila Municipal Court, seeking repayment of the interest on P363.92 with its legal interest and costs.

Obtaining judgment in favor of the plaintiff, the defendant appealed and the Court of First Instance of Manila, issued a judgment dismissing the claim with costs.

Against this decision, the plaintiff appealed directly to the Supreme Court.

ISSUE

Whether or not there is a valid consent from the creditor.

RULING

No, there is none.

Under the law (Art 1270, NCC), condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly. One and the other kinds shall be subject to the rules which govern inofficious donations. Express condonation shall, furthermore, comply with the forms of donation.

One of the essential requisites for remission is that the parties must be capacitated and must consent. Wherein this case, it is beyond the power of the courts or of Congress to condone interest unless the creditor consents. Hence, the appealed decision is confirmed with costs against the appellant.

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