Civil Code Art. 1254: Extinguishment of

Statute: Civil Code
Article: Art. 1254
Topic: Extinguishment of Obligations
Book: BOOK IV Obligations and Contracts
Title: TITLE I Obligations
Chapter: CHAPTER 4 Extinguishment of Obligations
Formerly: Art. 1174a of the old Civil Code
Year: 1949

The provision

When the payment cannot be applied in accordance with the preceding rules, or if application can not be inferred from other circumstances, the debt which is most onerous to the debtor, among those due, shall be deemed to have been satisfied. If the debts due are of the same nature and burden, the payment shall be applied to all of them proportionately. (1174a)

Cases applying this article

Premiere Development Bank v. Spouses Engracio T. Castañeda G.R. No. 185110

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