G.R. No. 135043 July 14, 2004
Art. 1249 – Payment of debts in money shall be made in
currency
Facts:
·
Guillermo and petitioner Towne were both
engaged in the construction business.
·
They entered into a contract for the (a)
construction of several housing units belonging to or reserved for different
individuals; (b) repair of several existing housing units belonging to
different individuals; and (c) repair of facilities, all located at the Virginia
Valley Subdivision, owned and developed by the petitioner.
·
The parties agreed that Guillermo should be
paid in full by petitioner the agreed contract cost upon completion of the
project.
·
But pending its completion, Guillermo was
allowed by petitioner to occupy, free of charge, one of its houses.
·
Following completion of the construction and
repair works subject of the contract, Guillermo demanded payment for his
services.
·
When petitioner failed to satisfy his claim
in full, Guillermo filed a Complaint for collection against
petitioner.
·
On appeal, petitioner averred that it had
already paid Guillermo the full amount, submitting the vouchers as proof of
payment.
Issue:
WoN
a
voucher suffices as evidence of payment to extinguish the petitioner’s
obligation.
Held:
No, the Court holds that the vouchers presented by
the petitioner do not vest them with the character of receipts in accordance
with Art. 1249 of the Civil Code.
Under
the law, payment of debts in money has to be made in legal tender and the
delivery of mercantile documents, including checks, shall produce the effect of
payment only when they have been cashed, or when through the fault of the
creditor they have been impaired.
Of
the two exceptions to the rule that payment by check does not extinguish the
obligation, neither exception is present in this case. It should be noted that
a voucher is not necessarily an evidence of payment. It is
merely a way or method of recording or keeping track of payments made.
Thus, the Petition is DENIED.
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