Article 1176

 The receipt of the principal by the creditor,without reservation with respect to the interest,shall give rise
to the presumption that said interest has been paid.

 The receipt of a later installments of a debt without reservation as to prior installments,shall likewise
raise the presumption that such installments have been paid.

Presumption

 Definition

o Meaning the inference (act or process of conducting from evidence or premises)of a fact not
actually known arising from its usual connection with another which known or proved.

 Kinds

o Conclusive presumption - one which cannot be contradicted.

o Disputable (or rebuttable) presumption - one which can be contradicted by presenting proof to
the contrary.

Example:

Article 1176 para.1

Mr. A borrowed the amount of 5000 from Mr.B with the interest rate of 5% per month. After three months, A
paid 5000 to Mr.B as payment for the principal amount borrowed. Mr. B recieved the amount without making
any reservation as to the collection of interest.

Presumption: As if Mr.A paid the interest before the principal.

Article 1176 para.2

Mr X borrowed P15000 from Mr. Y payable by installment within three months in the amount of P5,000 per
month.

Ist month- Not paid

2nd month- Mr.Y received the amount of 5000 for the 2nd month without making any reservation as to the
collection of the first installment.

Presumption: Mr.X is presumed to have paid the first installment

 Article 1177

Rights of the Creditors

 to levy attachment and execution upon all the property of the debtor, with exceptions
 to exercise all the rights and actions of the debtor, except such are inherently personal to him
 to ask for the rescission of the contracts made by the debtor in fraud of their rights

Article 1178

GENERAL RULE: All rights are transmissible.

EXCEPTIONS: If the law/ contract provides otherwise; obligation is purely personal.