Republic of the Philippines

THIRD JUDICIAL REGION

Regional Trial Court
Branch _____
Malolos City, Bulacan

X MANAHAN, Civil Case No. _____________

Plaintiff FOR: COLLECTION FOR A
SUM OF MONEY WITH
DAMAGES
- versus -

Y CONCEPCION,
Defendant
x -----------------------x

COMPLAINT

Plaintiff, through the undersigned counsel unto this Honorable Court,

hereby respectfully avers:

1. That plaintiff is of legal age, Filipino, married, and a resident of 123

Sesame St. Mabolo, Bulacan, Philippines while the defendant is also of legal
age, married, Filipino and a resident of 1630 M. National Highway, Acli,
Mexico, Pampanga, Philippines where summons and court processes may be
served;

2. That on 3 January 2017, the defendant borrowed from the plaintiff a

sum of money amounting to One Million One Hundred Ninety Two Thousand
Pesos (Php 1,192,000.00) as evidenced by a Loan Agreement herein attached
as Annex “A” and form an integral part of this complaint;

3. That as shown in the attached Loan Agreement, the indebtedness of

the defendant has become due and demandable on 3 January 2020;

4. That Y consigned his jewelry amounting to 1.4m to X. however, only

one piece of jewelry amounting to One Hundred Thousand pesos (Php
100,000) was sold and the same was applied to the principal loan of Y which
made the remaining balance to One Million Ninety Two Thousand Pesos (Php
1,092,000.00);

5. That due to the failure of the defendant to pay any amount he

borrowed, defendant issued a Promissory note (herein attached as Annex “B”
and form an integral part of this complaint) together with thirty six (36)
postdated checks in the amount of thirteen thousand pesos (Php 13,000.00)
each to the plaintiff as payment for monthly interest even thought there was
no stipulation in the Loan Agreement as to the rate or amount of interest that
should be paid;

6. That twenty (20) out of the thirty six (36) postdated checks were
encashed and the other sixteen (16) checks were dishonored by the drawee
bank due to “Account Closed” as evidenced by the Eastwest Bank Checks
herein attached as Annexes “C” to “C-15” and form an integral part of this
complaint;

7. That despite plaintiff's repeated demands, both written and verbal,

defendant failed, neglected and refused to fulfill obligations without just and
valid grounds to the continued damage and prejudice of plaintiff, as evidenced
by Annex “D” – Demand Letter dated February 15, 2020;

8. That the plaintiff in order to enforce his rights and interests, has
sought the services of a legal counsel with attorney’s fees amounting to One
Hundred Thousand Pesos (Php 100,000.00) and appearance fee in the amount
of Two Thousand Pesos (Php 2,000.00) per hearing as evidenced by Annex
“E” – Engagement Contract;

9. That the plaintiff has paid for litigation expenses amounting to Ten
Thousand Pesos (Php 10,000.00) as evidenced by Annex “F” – Official
Receipt;

10. That the plaintiff has suffered moral damages at the sum discretion
of the Honorable Court;

WHEREFORE, premises considered, it is hereby respectfully prayed

before the Honorable Court to render decision in favor of the plaintiff and
order the defendant to pay the following:

a. the sum of One Million Three Hundred Thousand Pesos (Php

1,300,000. 00) which includes the principal amount of One Million
Ninety Thousand Pesos and the interest of Two Hundred Eight
Thousand Pesos (Php 208,000.00);
b. moral damages, exemplary damages at the sum discretion of the
court;
c. attorney’s fees amounting to One Hundred Thousand Pesos (Php
100,000.00) and an appearance fee of Two Thousand Pesos (Php
2,000.00) per hearing;
d. litigation expenses amounting to Ten Thousand Pesos (Php
10,000.00).

Other reliefs and remedies deemed just and equitable under the
foregoing premises are likewise prayed for.

Malolos City, Bulacan, 7 September 2020.

 ATTY. ANGELIE PANGANIBAN
Counsel for Plaintiff
Panganiban and Flores Law Office
Roll of Attorneys No. 76869
PTR NO. 67890, 07/06/20, Malolos City
IBP NO. 123456, 07/04/20, Malolos City
MCLE Comp. No. V-0009999, 01/02/20
REPUBLIC OF THE PHILIPPINES)
PROVINCE OF BULACAN ) SS.
x----------------------------x

VERIFICATION AND CERTIFICATION

I, X MANAHAN, of legal age, Filipino, married, and a resident of 123

Sesame St. Mabolo, Bulacan, Philippines, after being sworn in accordance
with law, hereby depose and say:

(1) That I am the Plaintiff in the above-entitled case;

(2) That I have caused the preparation of the above Complaint and I
have read the same and understood the contents thereof;

(3) That the allegations contained therein are true and correct of my
own personal knowledge and based on authentic records.

(4) That I further certify that: I have not theretofore commenced any other
action or proceeding or filed any claim involving the same issues or matter in
any court, tribunal, or quasi-judicial agency and, to the best of my knowledge,
no such action or proceeding is pending therein; if I should thereafter learn that
the same or similar action or proceeding has been filed or is pending before the
Supreme Court, the Court of Appeals, or any other tribunal or quasi-judicial
agency, I undertake to report such fact within five (5) days therefrom to the court
or agency wherein the original pleading and sworn certification contemplated
herein have been filed.

IN WITNESS WHEREOF, I have hereunto set my hand this 7th day

of September 2020 at Malolos City, Bulacan, Philippines.

X MANAHAN
Affiant
TIN 12345-123; Malolos City

SUBSCRIBED AND SWORN to before me, this ___ day of

September 2020, affiant exhibiting to me his Tax Identification Card as shown
above below his name as competent evidence of his identity.

ATTY. ANGELIE PANGANIBAN

My Commission No. is 58
Expires on December 31, 2020
Panganiban and Flores Law Office
Roll of Attorneys No. 76869
PTR NO. 67890, 07/06/20, Malolos City
IBP NO. 123456, 07/04/20, Malolos City
MCLE Comp. No. V-0009999, 01/02/20
Doc. No. 5;
Page No. 2;
Book No. 1;
Series of 2020.
 ANNEX A
A
LOAN AGREEMENT
Acknowledgement of Debt.

1. Parties
This Loan Agreement is made between:

Y CONCEPCION of legal age, Filipino, residing at 1630 M.

National Highway, Acli, Mexico, Pampanga (“the Borrower”),

and

X MANAHAN, of legal age, Filipino, residing at 123 Sesame St.,

Mabolo, Malolos, Bulacan (“the Lender”), together known as the
"PARTIES".

2. Date of Agreement:
This Agreement is entered into on 3 January 2017.

3. Period of Loan:
This loan shall endure for a period of three (3) years calculated
from the Date of Agreement which is from 3 January 2017 to 3 January
2020.

4. Loan Amount:

The Lender lends the Borrower the total amount of One Million
One Hundred Ninety Two Thousand Pesos (Php 1,192,000.00)
payable within three (3) years.

Thus, the Borrower promises to pay the Lender the aforesaid

amount within the three year period from January 2017 to 3 January
2020.

5. Collection fees:
If this note is placed with a legal representative for collection,
then Borrower agrees to pay an attorney's fee of ten percent (10%) of
the balance. This fee will be added to the unpaid balance of the loan.

6. Insolvency:
The full balance of the capital and interest shall become payable
immediately if the Borrower becomes Insolvent.
7. Costs:
The Borrower shall be liable for the costs, if any, in respect of the
drafting and execution of this contact.

8. Entire Agreement:
The parties confirm that this contract contains the full terms of
their agreement and that no addition to or variation of the contract
shall be of any force and effect unless done in writing and signed by
both parties.

9. Execution
Executed by both Parties on 3 January 2017.

____________________ ___________________
X MANAHAN Y CONCEPCION
Lender Borrower
 ANNEX B

To: Mr. X Concepcion

I’m tendering to you these thirty six (36) postdated

checks amounting to thirteen thousand pesos (Php
13,000.00) each dated 3 February 2017 to 3 January
2020 as monthly interest of my principal loan.

25th day of January 2017, Malolos City, Bulacan,

Philippines.

Y Concepcion
Borrower
ANNEX C TO C-15
 ANNEX D

15 February 2020

Y CONCEPCION
1630 M. National Highway
Caniogan, Malolos
Bulacan

Dear Mr. Concepcion:

We write in behalf of our client, X Manahan, with regards to the loan

you have obtained to him last January 3, 2017.

Our client claims that you have failed to pay your remaining obligation
that became due last January 3, 2020 in the amount of One Million
Ninety Two Thousand Pesos (Php 1,092,000.00) as principal and the
sixteen (16) dishonored checks with total amount of Two Hundred
Eight Thousand Pesos (Php 208,000.00) as the interest with a total
amount of ONE MILLION THREE HUNDRED THOUSAND
PESOS (PHP1,300,000.00).

Our client further states that he went to your home address to

personally demand from you the payment of your obligation. However,
you still failed to do so.

In view of the premises, demand is hereby made upon you to cause the
payment of the loan you acquired within fifteen (15) days from today
to fulfill or pay the same. Otherwise, we shall be compelled to pursue
my client’s claims through appropriate civil action, in the furtherance
of the protection of the rights of our client under the law and
jurisprudence.

Very truly yours,

Angelie Panganiban
Roll of Attorneys No. 76869

Received by:
ANNEX D-1
Y CONCEPCION
 ANNEX E
PANGANIBAN & FLORES LAW OFFICE
91 M. Crisostomo St., San Vicente,
Malolos City, Bulacan, 3000
(0925)8071234, (0999)909039

ENGAGEMENT CONTRACT

This CONTRACT made and executed by and between:

X MANAHAN, of legal age, Filipino, and presently residing at

residing at 123 Sesame St., Mabolo, Malolos, Bulacan, hereinafter
referred to as the CLIENT;

-and-

PANGANIBAN & FLORES LAW OFFICE, a law firm organized

under and by virtue of the laws of the Republic of the Philippines as a
general professional partnership, with principal office at 91 M.
Crisostomo St., San Vicente, Malolos City, Bulacan,
Philippines, and represented in this act by its Managing Partner,
KIRSTEIN FAYE FLORES, hereinafter referred to as the "LAW
FIRM";

WITNESSETH: That -

WHEREAS, the LAW FIRM has offered its professional legal

services to the CLIENT and CLIENT agrees to engage the legal
services of the LAW FIRM, subject to the terms and conditions
hereinafter stipulated:

NOW THEREFORE, for and in consideration of the mutual

covenants and agreements herein agreed upon, the CLIENT and the
LAW FIRM, by these presents, have entered, as they hereby enter,
into a contract of services whereby the LAW FIRM shall render legal
services to the CLIENT, under the following terms and conditions:

1. The LAW FIRM, while in the performance of its duties, shall be

entitled to: Acceptance Fee in the amount of One Hundred
Thousand Pesos (P100,000.00) and Appearance Fee in the
amount of Two Thousand Pesos (P2,000.00) per hearing;

2. The LAW FIRM shall make itself available for ready consultation by
the CLIENT or its duly authorized officers in all matters or business
requiring legal advice and opinion affecting the client in general.
Written opinions rendered by the LAW FIRM on matters affecting the
client shall be subject to confirmations;
3. The LAW FIRM shall render documentation and notarial services to
the CLIENT and client documents shall be notarized free of charge.

4. The LAW FIRM shall not compromise or settle judicially or extra-

judicially any account, foreclosure proceeding or suit wherein the
CLIENT is a party, without the written consent and conformity of the
CLIENT or his duly authorized officer;

5. Routinary expenses for mailing of demand letters, pleadings to

court and copies thereof to adverse parties, cost of photocopy of
of evidentiary documents, payment of stenographic notes, as well as
filing fees and other legal expenses in court and other appropriate
government offices shall be for the account of the CLIENT;

6. The LAW FIRM shall keep in its office a docket of record in which it
shall cause to be recorded all proceedings connected with any action
which the CLIENT is interested and shall keep such other records
necessary to preserve a complete history of the business of the
CLIENT entrusted to its charge. Said docket and records shall be
subject to the inspection and control of the CLIENT or his
representative;

7. The LAW FIRM shall submit to the CLIENT at least once

every quarter or as often as required, written reports on all pending
matters handled by the LAW FIRM for the CLIENT;

8. The LAW FIRM, in addition to the herein enumerated services, shall

well and faithfully serve the CLIENT and shall at all times devote its
whole time and attention to the assignments and tasks given and/or
entrusted to it by the CLIENT and shall do and perform all such
services, acts and things connected therewith as the CLIENT shall
from time to time direct; nor shall the LAW FIRM at any time get itself
in a situation where a conflict of interest may arise between
those of the CLIENT and the LAW FIRM and/or its CLIENTS;
9. The LAW FIRM shall not, either during the term of this contract or
any time thereafter, use or disclose to any person, office, corporation
or entity any confidential information concerning the affairs of the
CLIENT which he may have acquired in the course of or as incident to
this contract for its own benefit, or to the detriment or probable
detriment of the CLIENT;

10. It is understood and agreed that nothing in this contract shall be

construed as establishing the relationship of employer-employee
between the CLIENT and the LAW FIRM, including its personnel;

11. Any violation of the terms and conditions of this contract by the
LAW FIRM shall give the CLIENT the option to rescind or cancel
immediately the contract without necessity of judicial proceedings;
12. The CLIENT reserves the right to terminate this Agreement without
need of cause or reason upon thirty-day written notice to the LAW
FIRM.

IN WITNESS WHEREOF, the parties have signed this

instrument this ____of September 2020 at Malolos City, Bulacan
Philippines.

X MANAHAN ANGELIE PANGANIBAN

Client Managing Partner
Panganiban & Flores Law Firm

SIGNED IN THE PRESENCE OF

ALLEN CRUZ AGNES YU

ANNEX F
 Republic of the Philippines
THIRD JUDICIAL REGION
Regional Trial Court
Branch _____
Malolos City, Bulacan

X MANAHAN, Civil Case No.

_____________
Plaintiff FOR: COLLECTION FOR A
SUM OF MONEY WITH
DAMAGES
- versus -

Y CONCEPCION,
Defendant
x -----------------------x

JUDICIAL AFFIDAVIT OF X MANAHAN

I, X MANAHAN, Filipino, of legal age, single and a resident of

123 Sesame St., Philippines, The complainant in this case, state under
oath as follows:

PRELIMINARY STATEMENT

The Person examining me is Atty. Angelie Panganiban with

address at 78 St., San Vicente, Malolos City, Bulacan, Philippines. The
examination is being held at the same address.

I am answering her questions fully conscious that I do so under

oath and may face criminal liability for false testimony and perjury.

PURPOSE:
This Affidavit is being offered to prove that Defendant, Y
CONCEPCION is indebted to plaintiff in the sum of One Million Three
Hundred Thousand Pesos (Php 1,300,000.00).

It is respectfully prayed that this Judicial Affidavit of Mr. X

Manahan be admitted as the Direct Examination of the witness in order
to expedite the proceedings.

DIRECT EXAMINATION QUESTIONS:

Q1: Mr. Witness, please state your name and other personal
circumstances.
A1: I am X Manahan, Filipino, 30 years old, single, and a resident
of 123 Sesame St., Mabolo, Malolos, Bulacan.
Q2: Are you the same complainant in this case?
A2: Yes, ma’am.

Q3: Do you know a certain Y Concepcion?

A3: Yes I do.

Q4: How do you know him?

A4: He borrowed money from me in the amount of One Million One
Hundred Ninety Two Thousand Pesos (Php 1,192,000.00).

Q5: When was this? Can you recall?

A5: Yes, this happened on January 3, 2017.

Q6: Do you have any proof that indeed Mr. Y borrowed money from
you on the said date?
A6: Yes ma'am. We executed a Loan Agreement containing all the
terms and conditions of the loan.

This Loan Agreement was marked as Exhibit "A" during the pre-trial
conference.

Q7: When is the due date of the said loan?

A7: The said loan became due on January 3, 2020.

Q8: Did Mr. Y pay his indebtedness on January 3, 2020?

A8: He only paid in the amount of One Hundred Thousand Pesos.

Q9: How did he pay the said amount?

A9: He consigned to me his jewelry in the amount of one million four
hundred thousand but only one jewelry was sold in the amount of
One Hundred Thousand Pesos (Php 100,000.00).

Q10: Based on what you said, only One Hundred Thousand Pesos
(Php 100,000.00) out of the One Million One Hundred Ninety Two
Thousand Pesos (Php 1,192,000.00) was paid by Y?
A10: Yes, because of the jewelry sold.

Q11: How much then is the remaining obligation of Mr. Y to you?

A11: One Million Ninety Two Thousand Pesos (Php 1,092,000.00).

Q12: How about the interest, do you have stipulation as to the rate
of interest?
A12: No, we don’t have any stipulation in the Loan Agreement as to
the interest. However Y gave me a promissory note which he
enclosed 36 posted checks in the amount of Thirteen Thousand
Pesos (Php 13,000.00) each for payment of interest.

This Promissory Note was marked as Exhibit "B" during the pre-trial
conference
Q13: Out of the thirty six (36) checks Mr. Y gave do you, have you
encashed the same?
A13: Only the twenty (20) checks.

Q14: How about the other sixteen (16) checks?

A14: No, those thirteen checks where dishonored due to “Account
Closed”.

This sixteen checks was marked as Exhibits C to C-15 during the

pre-trial conference.

Q15: How much is the amount of the dishonored check?

A15: The dishonored check amounts to Two Hundred Eight
Thousand Pesos (Php 208,000.00).

Q16: For failure of Mr. Y to pay the remaining balance of One Million
Ninety Two Thousand Pesos (Php 1,092,000.00) and due to the
sixteen (16) dishonored checks, how much is the total obligation of
Mr. Y to you?
A16: One Million Ninety Two Thousand Pesos (Php 1,092,000.00)
and the Two Hundred Eight Thousand Pesos (Php 208,000.00) with
total amount of One Million Three Hundred Thousand Pesos
(Php 1,300,000.00).

Q17: Other than the one hundred thousand pesos from the sale of
Mr. Y’s jewelry and the encashment of twenty checks given by Mr.
Y as payment for the interest, how much more did Mr. Y gave Y, if
any?
A17: He did not pay me any amount anymore.

Q18: What did you do, if any, after the failure of Mr. Y to pay you
after the debt became due and demandable?
A18: I went to Mr. Y's home to personally demand from him the
amount of his obligation.

Q19: Did he fulfill his obligation after you went to him?

A19: No. He did not pay it.

Q20: What happened next after he still failed to pay?

A20: I was constrained to seek the assistance of a counsel who
formally sent a Demand Letter to Mr. Y Concepcion.

This Demand Letter dated February 15, 2020 was marked as

Exhibit D during the pre-trial conference.

Q21: Do you have proof, if any, that the said Demand Letter was
received by Mr. Y?
 A21: The signature above the typewritten name Y Concepcion on
the said Demand Letter.

This signature of Mr. Y Concepcion was marked as Exhibit D-1

during the pre-trial conference.

Q22: After the receipt of Demand Letter by Mr. Y, what did he do if

any regarding the said Demand Letter?
A22: Mr. Y still failed to pay his obligation.

Q23: Do you know how much damages caused you by filing of this
case?
A23: I paid One Hundred Thousand (Php 100,000.00) to my legal
counsel as acceptance fee and I also pay her Two Thousand Pesos
(Php 2,000.00) every hearing as appearance fee.

Q24: What is your proof, if any, that you paid the said amount to
your legal counsel?
A24: I have here our Engagement Contract.

This Engagement Contract was marked as Exhibit E during the pre-

trial conference.

Q25: Is there anymore damages, if any, aside from payment of the

lawyer’s acceptance fee and appearance fee?
A25: Yes, ma’am. I also paid litigation fee of this case in the amount
of Ten Thousand Pesos (Php 10,000.00).

This Official Receipt was marked as Exhibit F during the pre-trial

conference.

Q26: Is there anymore damages you suffered, if any?

A26: As a consequence of Mr. Y’s adamant refusal to pay his
obligation, I also suffered anxiety and sleepless nights.

That will be all for the witness, Your Honor. The witness is ready
for cross examination.

IN WITNESS WHEREOF, I have hereunto set my hand this 8th

day of September 2020 at Malolos City, Philippines.

X Manahan
Affiant

SUBSCRIBED AND SWORN TO BEFORE ME, a notary public

in and for Malolos City this 8th day of September 2020. Affiant
personally came and appeared with Passport No. EC 1234567 issued
by the Department of Foreign Affairs (DFA) on January 8, 2019 at
Malolos City, bearing his photograph and signature, known to me as
the same person who personally signed the foregoing instrument
before me and avowed under penalty of law to the whole truth of the
contents of said instrument.

ATTY. ANGELIE PANGANIBAN

Notary Public
My Commission No. is 58
Expires on December 31, 2020
Panganiban and Flores Law Office
Roll of Attorneys No. 76869
PTR NO. 67890, 07/06/20, Malolos City
IBP NO. 123456, 07/04/20, Malolos City
MCLE Comp. No. V-0009999, 01/02/20

Doc. No.3;
Page No. 3;
Book No.3;
Series of 2020.
 ATTESTATION

I, ATTY. ANGELIE PANGANIBAN, of legal age, Filipino, with

postal address at 78 St., San Vicente, Malolos City, Bulacan,
Philippines, after being duly sworn depose and say:

(1) I was the one who conducted the examination of witness, X

MANAHAN at my aforementioned office in 78 St., San
Vicente, Malolos City, Bulacan, Philippines;

(2) I have faithfully recorded or caused to be recorded the

questions I asked and the corresponding answers that the
witness gave;

(3) I nor any other person then present or assisting her coached
the witness regarding his answers;

IN WITNESS WHEREOF, I have hereunto set my hand this 8th

day of September 2020 at Malolos City.

ATTY. ANGELIE PANGANIBAN

Direct Examining Counsel

SUBSCRIBED AND SWORN TO BEFORE ME, a notary public

in and for Malolos City this 8th day of September 2020. Affiant
personally came and appeared with Passport No. EC 7654321 issued
by the Department of Foreign Affairs (DFA) on January 28, 2020 at
Malolos City, bearing his photograph and signature, known to me as
the same person who personally signed the foregoing instrument
before me and avowed under penalty of law to the whole truth of the
contents of said instrument.

ATTY. KIRSTEIN FAYE R. FLORES

Notary Public
Expires on December 31, 2020
Panganiban and Flores Law Office
Roll of Attorneys No. 79750
PTR NO. 798690, 07/06/20, Malolos City
IBP NO. 127564, 07/04/20, Malolos City
MCLE Comp. No. V-00097675, 01/02/20

Doc. No.4;
Page No. 4;
Book No.4;
Series of 2020.
 Republic of the Philippines
Third Judicial Region
REGIONAL TRIAL COURT
Branch___
Malolos City

X MANAHAN,
Plaintiff Civil Case No. 123
- versus - FOR: Collection of Sum of Money

Y CONCEPCION
Respondent.
x----------------------------------x

MEMORANDUM

[FOR THE PLAINTIFF]

COMES NOW PLAINTIFF, through the undersigned counsel,

in compliance with the directive of the Honorable Court, most
respectfully submit this Memorandum, stated as follows:

FACTS OF THE CASE

Plaintiff was approached by the respondent sometime on

January 3, 2017 to obtain a loan. The principal amount of the said loan
is One Million One Hundred Ninety Two Thousand Pesos (Php
1,192,000.00). The loan was payable in Three (3) years from the date of
their agreement. The loan was properly substantiated by a Loan
Agreement Contract which is marked as Annex A in the complaint.

The respondent voluntarily executed a promissory note that he

will pay the amount of Thirteen Thousand Pesos (Php13,000.00) as
interest whenever he will fail to pay the exact amount to be paid for
each month. Upon executing the said promissory note, he issued a
post-dated check in favor of the plaintiff in the amount of Thirteen
Thousand Pesos (Php 13,000.00).

The respondent failed to pay the full amount for Twenty (20)
consecutive months, hence, the plaintiff encashed the Twenty (20)
checks to cover the unpaid months. However, the plaintiff
continuously failed to pay the succeeding months. The plaintiff was
forced to encashed the remaining cheques in his hand. Unfortunately,
all was returned by the bank for the reason that the account was closed.

The respondent consigned several jewelry in favor of the

plaintiff, however, only one jewelry was sold in the amount of One
Hundred Thousand Pesos (Php 100,000.00). The said amount was
deducted in respondent’s obligation.

Since the whole obligation of the respondent is still unpaid. The

plaintiff personally went to respondent to inform him and demand
that he pay the loan to no avail. Having no other option available, the
plaintiff was constrained to seek the help of his lawyer. A formal
demand was personally sent to the respondent, which he personally
received. Copy of the demand letter dated February 15, 2020 was
marked as ANNEX “D” in the complaint.

STATEMENT OF ISSUE
Whether or not the consignment of the jewelry by the defendant
to the plaintiff be applied to settle the former’s loan.
 DISCUSSIONS

Y Concepcion failed to prove

that it delivered the
proceeds of the loan to
petitioners

A simple loan or mutuum is a contract where one of the parties

delivers to another, either money or other consumable thing, upon the
condition that the same amount of the same kind and quality shall be
paid.1 A simple loan is a real contract and it shall not be perfected until
the delivery of the object of the contract.2 Necessarily, the delivery of
the proceeds of the loan by the lender to the borrower is indispensable
to perfect the contract of loan. Once the proceeds have been delivered,
the unilateral characteristic of the contract arises and the borrower is
bound to pay the lender an amount equal to that received.3

In the case at bar there is no showing that defendant Y

Concepcion paid the lender the equal amount of the loan to plaintiff X
Manahan by his consignment of the jewelry to the later considering
that the consigned jewelry was not the one which was agreed upon in
there loan agreement and the same is also not yet sold by the plaintiff.
Even though it is still in the hands of the plaintiff, the loan of Y to X
cannot be considered as paid by the mere consignment of the same to
X.
As mere consignment is the act of giving over to another person
or agent's charge, custody or care any material or goods but retaining
legal ownership until the material or goods are sold.

1 Article 1933 of the New Civil Code.

2 Article 1934 of the New Civil Code.
3 See Article 1953 of the New Civil Code.
 In the case at bar, only the Consignment Receipt was the proof
of the defendant that the jewelry was in the hands of the plaintiff, but
there is no showing that the ownership of the same was already
transferred to the plaintiff neither the jewelry was sold in order that
the sale be applied to defendant’s total obligation.

PRAYER
WHEREFORE, premises considered, it is most respectfully
prayed to this Honorable Court that this Memorandum filed by
plaintiff be noted upon and considered.

Other reliefs, just and equitable under the premises are further
prayed for.

RESPECTFULLY SUBMITTED.

City of Malolos, Bulacan, 10th day of September 2020.

ATTY. ANGELIE PANGANIBAN

PANGANIBAN and FLORES LAW OFFICE
Counsel for the Plaintiff
Roll of Attorneys No. 76869
PTR NO. 67890, 07/06/20, Malolos City
IBP NO. 123456, 07/04/20, Malolos City
MCLE Comp. No. V-0009999, 01/02/20
78 St., San Vicente, Malolos City, Bulacan

Copy Furnished:

Atty. Deanne Gel Santos

Counsel for the defendant