Benito de Los Reyes v. Veronica Alojado

Summary

Benito de los Reyes loaned P79.57 to Veronica Alojado with the condition that she serve as an unpaid domestic servant until the debt was repaid. When Alojado left his service without paying, Reyes sued for debt collection and return to unpaid service. The Supreme Court affirmed the lower court's ruling that while the debt was valid and collectible, the condition requiring unpaid domestic service was contrary to law and morality, essentially constituting slavery. The Court held that domestic services must always be remunerated under the Civil Code and historical regulations. Alojado was entitled to wages for her services, which when offset against her debt, resulted in Reyes owing her P2.43. This case established that contractual arrangements requiring gratuitous domestic service in exchange for debt forgiveness are legally unenforceable in the Philippines.