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Osmena V.

Rama
Doa Cenona Rama entered into a contractt with Don Victoriano Osmena for a sum of money with a
stipulated condition that in the event that the former will not be able to pay the amount borrowed, she
will sell to the said Seor Osmea all the sugar that she will harvest and as a guarantee, pledge as
security all of her present and future property, and as special security the house with tile roof and
ground floor of stone in which she is currently residing. The following year, defendant contracted an
additional loan from petitioner.
However, even before the said loans can be paid, Don Victoriano Osmena died. As a
consequence, the said contractual agreements became properties of one of his heirs. When the
stipulated payment period came, defendant was not able to pay for said obligation. This prompted
the heir, herein plaintiff, to file a case in the Court of First Instance demanding for the execution and
delivery of said contracts.
After hearing the evidence presented by both parties, the Court of First Instance rendered a
decision in a favor of the plaintiff.
Dissatisfied with the decision, the defendants appealed.

Question:
Whether or not the condition that herein defendant relied upon the payment of the obligation
is valid and would thereby preclude her from payment.

RULING:
If that statement found in her acknowledgment of the indebtedness should be regarded as a
condition, it was a condition which depended upon her exclusive will, and is therefore, void. (Art.
1115, Civil Code.) The acknowledgment, therefore, was an absolute acknowledgment of the
obligation and was sufficient to prevent the statute of limitation from barring the action upon the
original contract.