Practice question
A PHP90,000 debt has been reduced by a verified PHP30,000 payment applied to principal, with no other charges. Which amount should a letter identify as unpaid principal?
- PHP60,000, explaining the credit.
- PHP90,000 while concealing the payment.
- PHP120,000 because receiving payment increases principal.
- PHP30,000 as an invented penalty.
- Any amount chosen to pressure settlement.
Legal references
- Civil Code, Articles1244,1246,1248,1251,1956: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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