Practice question
A principal pays PHP200,000 toward a properly established PHP500,000 covered solidary obligation. No release or other adjustment exists. The agency says the principal’s partial payment extinguished the whole claim, while the worker demands PHP500,000 anew without credit. Which is correct?
- The payment must be credited, leaving PHP300,000 of the common obligation potentially collectible
- The worker may collect the same PHP200,000 twice
- Any partial payment necessarily extinguishes all solidarity
- Only PHP1 remains by operation of law
- The agency automatically owes twice the original award
Legal references
- RA8042 as amended by RA10022: https://lawphil.net/statutes/repacts/ra2010/ra_10022_2010.html Section7 amending Section10, covered claims and performance bond.
- Civil Code: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1216–1217.
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