REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

City of Mandaluyong
Branch 1
PAUTANG INCORPORATED
represented by Asiong Aksaya,
President,
Plaintiff,
CIVIL CASE No. 0001
FOR: Collection of sum
of money

-versusGARY GASTOS,
Defendant.
x-----------------------------------x
MEMORANDUM

COMES NOW, the plaintiff, through the undersigned counsel and

unto this Honorable Court, most respectfully submits and present this
memorandum in the above-titled case and aver that:
1.

That the plaintiff, is a finance and lending corporation duly organized

and existing under the Laws of the Philippines, having its principal office at
68 Shaw Blvd, Mandaluyong City;
2.
That the defendant, GARY GASTOS, is of legal age, Filipino citizen,
single, with residence and postal address at 69 Shaw Blvd, Mandaluyong
City, where they may be served with summons and other court processes;
3.
By virtue of a contract of loan executed June 1, 2013. The defendant
obtained a loan from the plaintiff in the sum of Eight Hundred Thousand
Pesos (P800,000.00) Philippine Currency, with the following terms and
conditions among others:
a. The principal loan obligation shall be payable in 1 year from
the execution of the agreement;
b. The principal shall be paid on installment basis on which there
will be 4 payments of One Hundred Twenty Five Thousand
Pesos (P125,000) and last payment of Four Hundred Twenty
Five Thousand Pesos (P425,000);
c. The 1st payment of the installment amount shall be paid on the
month of September 2013, 2nd payment on December 2013,
3rd payment on March 2014 and the last payment on June
2014;
d. The principal loan obligation shall incur an interest of 10% per
month compounded in the event of delay in payment.
4.

The defendant failed to pay the last installment amount of FOUR

HUNDRED TWENTY FIVE THOUSAND PESOS (P425,000) for the last
payment month of June 2015;

5.

On July 1, 2014, defendant executed a promissory note in favor of the

plaintiff in the amount of P 425,000 payable within 30 days from the date of
the promissory note which reads as follows:
Mandaluyong, Philippines
1 July 2014

I promise to pay PAUTANG INC. the sum of P125,000 or order

within 30 days from this date.
GARY GASTOS

6.

That the 30-day period had elapsed and despite demands made orally
and in writing by the plaintiff, defendant refused and failed to pay the
amount stated in the promissory note.
7.
That due to the unjust refusal of defendant to comply with the
demands, plaintiff was compelled to file the instant action engaging the
services of counsel in the amount of P50,000.
STATEMENT OF ISSUES
1. Whether or not the plaintiff has a cause of action
2. Whether or not the defendant failed to make the last payment of the loan;
3. Whether or not payment to the President of the Corporation constitute
payment to the Corporation itself.
ARGUMENTS
1. Defendant did not make a delivery of the final payment on the account of the
Corporation, however deposited it on the wrong account which the
corporation did not authorize.
2. Defendants acknowledgement receipt for the last payment is invalid and
does not constitute payment thereof.

DISCUSSIONS

1. A person who is burdened with the obligation must take care of it as

indicated in Art. 1163. Every person obliged to give something is also
obliged to take care of it with the proper diligence of a good father of a
family, unless the law or the stipulation of the parties requires another
standard of care. Which of course in relation to this case must be deposited
to the right account for the obligation to be extinguished. In Art. 1232.
Payment means not only the delivery of money but also the performance, in
any other manner, of an obligation. The performance is important as to the
payment of the obligation.
2. Complete delivery must be made as per Art. 1233. A debt shall not be
understood to have been paid unless the thing or service in which the
obligation consists has been completely delivered or rendered, as the case
may be. Which in this case defendant did not completely deliver such
obligation.
PRAYER
WHEREFORE, premises considered, it is most respectfully prayed unto this
Honorable Court that, after hearing, judgment be rendered ordering the
defendant:
1.
2.

To pay the amount of P425,000 due last June 30, 2014 with interest;
To pay the plaintiff the cost of the suit.
City of Mandaluyong, January 30, 2015.
ABAD AND AGRA LAW OFFICE
Counsel for the Plaintiff
Antipolo City
By:
La Verne A. Abad
Roll of Attorney No. 00001
IBP No. 12345/2-5-12/Antipolo
PTR No. 87654/12-22-11/Antipolo
MCLE Compliance Certificate No. 00001/ 1/1/2015/Antipolo
By:
Jeare Agra
Roll of Attorney No. 00002
IBP No. 12345/2-6-12/Antipolo
PTR No. 87654/12-23-11/Antipolo
MCLE Compliance Certificate No. 00002/ 1/2/2015/Antipolo