Article 1249
ELI5— what this means for you
Debts must be paid in the currency agreed upon, or in Philippine legal tender if that's not possible; paying with checks or promissory notes only counts as payment once they're actually cashed, or if they lose value through the creditor's own fault.
Official text — RA 386
The payment of debts in money shall be made in the currency stipulated, and if it is not possible to deliver such currency, then in the currency which is legal tender in the Philippines.
The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed, or when through the fault of the creditor they have been impaired.
In the meantime, the action derived from the original obligation shall be held in the abeyance. (1170)
Source: lawphil.net (RA 386 as amended)
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