RADIOWEALTH FINANCE COMPANY vs. DEL ROSARIO 335 SCRA 288

RADIOWEALTH FINANCE COMPANY vs. DEL ROSARIO
335 SCRA 288

FACTS:

Spouses Vicente & Maria Del Rosario jointly & severally executed, signed and delivered in favor of Radiowealth Finance Company a promissory note for P138,948.

Thereafter, respondents defaulted on the monthly installments. Despite repeated demands, they failed to pay their obligation.

Petitioner filed a complaint for the collection of sum of money before the RTC.

Trial court dismissed the complaint for the evidence presented were merely hearsay.

CA reversed & remanded the case for further proceedings.

Petitioner claims that respondents are liable for the whole amount of their debt and the interest thereon, after they defaulted on the monthly installments. Respondents counter that the installments were not yet due and demandable. They theorize that the action for immediate enforcement of their obligation is premature because its fulfillment is dependent on the sole will of the debtor. Hence, they consider that the proper court should first fix a period for payment, pursuant to Articles 1180 and 1197 of the Civil Code.

ISSUE:

WON the installments had already became due and demandable? YES

HELD:

The act of leaving blank space the due date of the first installment did not necessary mean that the debtors were allowed to pay as & when they could. If this was the intention of the parties, they should have so indicated in the promissory note. However, it did not reflect any such intention.

While the specific date on which each installment would be due was left blank, the note clearly provided that each installment should be payable each month.

Furthermore, it also provided for an acceleration clause and a late payment penalty, both of which showed the intention of the parties that the installment should be paid at a definite date. Had they intended that the debtors could pay as & when they could, there would have been no need for these 2 clauses.

The installments had already became due & demandable is bolstered by the fact that respondents started paying installments on the promissory note. The obligation of the respondents had matured & they clearly defaulted when their checks bounced. Per the acceleration clause, the whole debt became due one month after the date of the note because the check representing their first installment bounced.