Tomas Osmeña v. Cenona Rama

Summary

This case involves the enforcement of loan contracts executed in 1890 and 1891 where defendant borrowed money promising repayment in sugar. After the original creditor died, the contracts passed to the plaintiff through inheritance and assignment. When defendant failed to pay despite acknowledging the debt in 1902, plaintiff sued in 1906. Defendant raised prescription as defense. The Supreme Court affirmed the judgment for plaintiff, ruling that defendant's seemingly conditional acknowledgment of debt was actually absolute because the condition (payment upon sale of house) depended solely on her will and was void under Civil Code Article 1115. This absolute acknowledgment prevented the statute of limitations from barring the action, establishing important precedent on debt acknowledgment and prescription interruption.