Practice question
A creditor is owed ₱100,000. A third person validly becomes subrogated through a ₱40,000 partial payment. Only ₱50,000 is later available for satisfaction of that credit. No contrary governing arrangement is stipulated. Under Article 1304, who has preference as between the original creditor’s unpaid remainder and the partial subrogee?
- The partial subrogee always takes the first ₱40,000.
- They must divide every peso equally regardless of the remaining claims.
- The debtor acquires the creditor’s unpaid remainder.
- The original creditor loses every right once any part is paid.
- The original creditor is preferred for the unpaid remainder.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1236–1237 and 1300–1304.
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