loan, Asiancars conveyed ownership of the building on the leased premises to MBTC, by way of "dacion en
O BLIGATIONS pago."Is the dacion en pago by Asiancars in favor of MBTC valid? A: Yes. MBTC was a purchaser in good faith. MBTC had no knowledge of the stipulation in the lease contract. Although the same lease was registered and duly annotated, MBTC was charged with constructive knowledge only of the fact of lease of the land and not of the specific provision stipulating transfer of ownership of the building to the Jaymes upon termination of the lease. While the alienation was in violation of the stipulation in the lease contract between the Jaymes and Asiancars, MBTC s own rights could not be prejudiced by Asiancars actions unknown to MBTC. Thus, the transfer of the building in favor of MBTC was valid and binding. (Jayme v. CA, G.R. No. 128669, Oct. 4, 2002) U N I V E R S I T Y O F S A N T O T O M A S F a c u l t a d d e D e r e c h o C i v i l A CADEMICS C HAIR : L ESTER J AY A LAN E. F LORES II V ICE C HAIRS F OR A CADEMICS : K AREN J OY G. S ABUGO & J OHN H ENRY C. M ENDOZA V ICE C HAIR FOR A DMINISTRATION AND F INANCE : J EANELLE C. L EE V ICE C HAIRS FOR L AY O UT A ND D ESIGN : E ARL L OUIE M. M ASACAYAN & T HEENA C. M ARTINEZ 2. FORM OF PAYMENT Q: What are the rules as regards payment in monetary obligations? A: 1. Payment in cash all monetary obligations shall be settled in the Philippine currency which is legal tender in the Philippines. However, the parties may agree that the obligations or transactions shall be settled in any other currency at the time of payment. (Sec. 1, R.A. 8183) Note: R.A. 8183 amended the first paragraph of Art. 1249 of the Civil Code, but the rest of the article remain subsisting. (Pineda, Obligations and Contracts, 2000 ed, p. 221) 2. Payment in check or other negotiable instrument not considered payment, they are not considered legal tender and may be refused by the creditor except when: a. the document has been cashed; or b. it had been impaired through the fault of the creditor. PAYMENT IN CASH Q: Northwest Airlines, through its Japan Branch, entered into an International Passenger Sales Agency Agreement with CF Sharp, authorizing the latter to sell its air transport tickets. CF Sharp failed to remit the proceeds of the ticket sales, thus, Northwest Airlines filed a collection suit before the Tokyo District Court which rendered judgment ordering CF Sharp to pay 83,158,195 Yen and damages for the delay at the rate of 6% per annum. Unable to execute the decision in Japan, Northwest Airlines filed a case to enforce said foreign judgment with the RTC of Manila. What is the rate of exchange that should be applied for the payment of the amount? A: The repeal of R.A. 529 by R.A. 8183 has the effect of removing the prohibition on the stipulation of currency other than Philippine currency, such that obligations or transactions may now be paid in the currency agreed upon by the parties. Just like R.A. 529, however, the new law does not provide for the applicable rate of exchange for the conversion of foreign currency incurred obligations in their peso equivalent. It follows, therefore,
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