Article 1176
ELI5— what this means for you
If a creditor accepts payment without claiming interest, they are presumed to have waived interest for that payment. Receipt acknowledging payment of principal without reservation creates a presumption of prior installments being paid.
Official text — RA 386
The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.
The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a)
Source: lawphil.net (RA 386 as amended)
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