The creditor cannot be forced to accept partial payments

Dear PAO,

My friend asked me if I could lend her some money because she needed it to apply for a job abroad. I agreed to lend her a certain amount, and we put our agreement in writing. The loan amount is P200,000 and is due on October 15, 2024. We also agreed that failure to pay the full amount by the due date will result in a 6 percent penalty. But on October 15, she offered to pay P100,000, saying she could not pay the full amount due to financial problems. She insisted that I accept partial payment to stop accruing interest. I want to know if my friend can force me to accept 100,000 pesos as partial payment of her debt.

Martin

Dear Martin,

Under Article 1248 of the New Civil Code of the Philippines, as a general rule, a creditor cannot be forced to accept partial payment from a debtor, such as:

“ARTICLE 1248. Unless there is an express stipulation to this effect, the creditor cannot be forced to partially receive the advance payments in which the obligation consists. The debtor also cannot be required to make partial payments.”

Prestation refers to the object of the obligation. Based on the above provisions of the law, as a rule, preliminary preparation should be carried out in one action, and not in parts. It is clear, therefore, that a debtor cannot force a creditor to accept partial payment, any more than a debtor can be forced by a creditor to pay a partial payment. Therefore, if the creditor refuses to accept partial payment, such refusal cannot be considered unreasonable, since it is supported by law. Moreover, if the creditor refuses to accept partial payment, he or she does not incur any delay in accepting payment.

However, it should be understood that while a creditor cannot be forced to accept a partial payment, there is no prohibition against a creditor voluntarily accepting a partial payment. In other words, the debtor can force the creditor to accept partial payment only if there is an express agreement between the parties.

In your case, based on the facts stated, your friend is obligated to pay you the entire amount of P200,000 and failure to do so will result in a 6 percent penalty. As discussed above, your friend cannot force you to accept her partial payment of P100,000. The right to decide whether or not to accept partial payment belongs to you as the creditor, not to your friend who owes you money.

We hope we were able to answer your questions. This advice is based solely on the facts you have provided and our assessment of them. Our opinion may change if other facts are changed or clarified.

Editor’s note: “Dear PAO” is a daily column from the prosecutor’s office. Questions for Chief Acosta can be sent to (email protected)