09 Garcia v. Thio.pdf - SUPREME COURT REPORTS ANNOTATED VOLUME 518 VOL 518 MARCH 16 2007 433 Garcia vs Thio G.R No 154878 March 16 2007 CAROLYN M GARCIA

09 Garcia v. Thio.pdf - SUPREME COURT REPORTS ANNOTATED...

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8/1/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 518 1/12 VOL. 518, MARCH 16, 2007 433 Garcia vs. Thio G.R. No. 154878 . March 16, 2007. * CAROLYN M. GARCIA, petitioner, vs. RICA MARIE S. THIO, respondent. Loans; Contracts; A loan is a real contract, not consensual, and as such is perfected only upon the delivery of the object of the contract.—A loan is a real contract, not consensual, and as such is perfected only upon the delivery of the object of the contract. Same; Same; Upon delivery of the object of the contract of loan (in this case the money received by the debtor when the checks were encashed) the debtor acquires ownership of such money or loan proceeds and is bound to pay the creditor an equal amount.—Upon delivery of the object of the contract of loan (in this case the money received by the debtor when the checks were encashed) the debtor acquires ownership of such money or loan proceeds and is bound to pay the creditor an equal amount. Same; Same; Words and Phrases; Delivery is the act by which the res or substance thereof is placed within the actual or constructive _______________ * FIRST DIVISION. 434 434 SUPREME COURT REPORTS ANNOTATED Garcia vs. Thio possession or control of another.—Delivery is the act by which the res or substance thereof is placed within the actual or constructive
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8/1/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 518 2/12 possession or control of another. Although respondent did not physically receive the proceeds of the checks, these instruments were placed in her control and possession under an arrangement whereby she actually re-lent the amounts to Santiago. Evidence; The presumption is that “evidence willfully suppressed would be adverse if produced.”—Respondent inexplicably never presented Santiago as a witness to corroborate her story. The presumption is that “evidence willfully suppressed would be adverse if produced.” Respondent was not able to overturn this presumption. Loans; Interests; Article 1956 of the Civil Code provides that “no interest shall be due unless it has been expressly stipulated in writing.”—We do not, however, agree that respondent is liable for the 3% and 4% monthly interest for the US$100,000 and P500,000 loans respectively. There was no written proof of the interest payable except for the verbal agreement that the loans would earn 3% and 4% interest per month. Article 1956 of the Civil Code provides that “[n]o interest shall be due unless it has been expressly stipulated in writing.” Same; Same; While there can be no stipulated interest, there can be legal interest pursuant to Article 2209 of the Civil Code.— Be that as it may, while there can be no stipulated interest, there can be legal interest pursuant to Article 2209 of the Civil Code. It is well-settled that: When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due
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