G.R. No.

L-1328 September 9, 1949

MARIANO NEPOMUCENO a! AGUE"A G. "E NEPOMUCENO, plaintifs-appellants,
vs.
E"IL#ER$O A. NARCISO a! MAURA SUARE%, defendants-appellees.
Higinio Gopez for appellants.
Fausto, Solima and Gotiangco for appellees.
O%AE$A, J.:
On November 14, 1938, appellant Mariano Nepomuceno executed a mortae in favor of t!e appellees on
a parcel of land situated in t!e municipalit" of #neles, $rovince of $ampana, to secure t!e pa"ment
%it!in t!e period of seven "ears from t!e date of t!e mortae of t!e sum of $&4,''' toet!er %it!
interest t!ereon at t!e rate of 8 per cent per annum.
On (eptember 3', 1943, t!at is to sa", more t!an t%o "ears before t!e maturit" of said mortae, t!e
parties executed a notarial document entitled )$artial Novation of *ontract) %!ereb" t!e" modi+ed t!e
terms of said mortae as follo%s,
-1. /rom 0ecember 8, 1941, to 1anuar" 1, 1944, t!e interest on t!e mortae s!all be at 2 per cent
per annum, unpaid interest also pa"in interest also pa"in interest at t!e same rate.
-&. /rom 1anuar" 1, 1944, up to t!e end of t!e %ar, t!e mortae debt s!all li3e%ise bear interest at
2 per cent. 4npaid interest durin t!is period s!all !o%ever not bear an" interest.
-3. #t t!e end of t!e %ar t!e interest s!all aain become 8 per cent in accordance %it! t!e oriinal
contract of mortae.
-4. 5!ile t!e %ar oes on, t!e mortaor, !is administrators or assins, cannot redeem t!e
propert" mortaed.
-6. 5!en t!e mortae lapses on November 14, 1946, t!e mortae ma" continue for anot!er ten
"ears if t!e mortaor so c!ooses, but durin t!is period !e ma" pa" onl" one !alf of t!e capital.
On 1ul" &1, 1944, t!e mortaor Mariano Nepomuceno and !is %ife #ueda 7. de Nepomuceno +led t!eir
complaint in t!is case aainst t!e mortaees, %!ic! complaint, as amended on (eptember 8, 1944,
alleed t!e execution of t!e contract of mortae and its principal novation as above indicated, and
8. 9!at as per #nnex :, No. 4, it is provided t!at t!e mortaor cannot redeem t!e propert"
mortaed %!ile t!e %ar oes on; and t!at not%it!standin t!e said provision t!e !erein plaintifs-
mortaors are no% %illin to pa" t!e amount of t!e indebtedness toet!er %it! t!e correspondin
interest due t!ereon;
8. 9!at on 1ul" 19, 1944, t!e mortaors-plaintifs %ent to t!e !ouse of t!e mortaees-defendants
to tender pa"ment of t!e balance of t!e mortae debt %it! t!eir correspondin interest, but said
spouses defendants refuse and still refuse to accept pa"ment;
9. 9!at because of t!is refusal of t!e defendants to accept tender of pa"ment on t!e mortae
consideration, t!e plaintifs sufered and still sufer damaes in t!e amount of $6,''';
1'. 9!at t!e plaintifs are no% and !ave deposited %it! t!e *ler3 of *ourt of /irst <nstance of
$ampana t!e amount of $&&,362 for t!e pa"ment of t!e mortae debt and t!e interest due
t!ereon;
5!erefore, it is more respectfull" pra"ed t!at t!is =onorable *ourt %ill issue an order in t!e
follo%in tenor,
-a. Orderin t!e defendants to accept tender of pa"ment from t!e plaintifs;
-b. Orderin defendants to execute t!e correspondin deed of release of mortae;
-c. Orderin defendants to pa" damaes in t!e amount of $6,'''; and
-d. Orderin defendants to pa" t!e amount of $3,''' as attorne">s fee and t!e costs of suit and an"
ot!er remed" ?ust and e@uitable in t!e premises.
#fter t!e trial t!e court sustained t!e defense t!at t!e complaint !ad been prematurel" presented and
dismissed it %it! costs.
#ppellants contend t!at t!e stipulation in t!e contract of (eptember 3', 1943, t!at )%!ile t!e %ar oes on
t!e mortaor, !is administrators or assins cannot redeem t!e propert" mortaed,) is aainst public
polic" and t!erefore null and void. 9!e" cite and rel" on article 1&66 of t!e *ivil *ode, %!ic! provides,
#A9. 1&66. B 9!e contractin parties ma" establis! an" pacts, clauses, and conditions t!e" ma"
deem advisable, provided t!e" are not contrar" to la%, morals, or public order.
9!e" arue t!at )it %ould certainl" be aainst public polic" and a restraint on t!e freedom of commerce to
compel a debtor not to release !is propert" from a lien B even if !e %anted to b" t!e pa"ment of t!e
indebtedness B %!ile t!e %ar oes on, %!ic! %as undoubtedl" of a ver" uncertain duration.)
9!e +rst t%o pararap!s of article 11&6 of t!e *ivil *ode provide,
#A9. 11&6. B Obliation for t!e performance of %!ic! a da" certain !as been +xed s!all be
demandable onl" %!en t!e da" arrives.
# da" certain is understood to be one %!ic! must necessaril" arrive, even t!ou! its date be
un3no%n.
#rticle 11&8 sa"s,
#A9. 11&8. 5!enever a term for t!e performance of an obliation is +xed, it is presumed to !ave
been establis!ed for t!e bene+t of t!e creditor and t!at of t!e debtor, unless from its tenor or from
ot!er circumstances it s!ould appear t!at t!e term %as establis!ed for t!e bene+t of one or t!e
ot!er.
<t %ill be noted t!at t!e oriinal contract of mortae provided for interest at 8 per cent per annum and
t!at t!e principal toet!er %it! t!e interest %as pa"able %it!in t!e period of seven "ears from November
14, 1938. :ut b" mutual areement of t!e parties t!at term %as modi+ed on (eptember 3', 1943, b"
reducin t!e interest to 2 per cent per annum from 0ecember 8, 1941, until t!e end of t!e %ar and b"
stipulatin t!at t!e mortaor s!all not pa" of t!e mortae %!ile t!e %ar %ent on.
5e +nd not!in immoral or violative of public order in t!at stipulation. 9!e mortaees apparentl" did not
%ant to !ave t!eir pre%ar credit paid %it! 1apanese militar" notes, and t!e mortaor voluntaril" areed
not to do so in consideration of t!e reduction of t!e rate of interest.
<t %as a perfectl" e@uitable and valid transaction, in conformit" %it! t!e provision of t!e *ivil *ode
!ereinabove @uoted.
#ppellants %ere bound b" said contract and appellees %ere not obliated to receive t!e pa"ment before it
%as due. =ence t!e latter !ad reason not to accept t!e tender of pa"ment made to t!em b" t!e former.
9!e ?udment is aCrmed, %it! costs aainst t!e appellants.