Practice question
Counsel drafts a letter demanding PHP200,000 on an admittedly due loan. The letter clearly identifies the note and demands payment. It also claims that receipt conclusively establishes liability and permits immediate seizure of the debtor's car without judicial process or any lawful security-enforcement basis. Which assessment is correct?
- The entire claim becomes a final judgment on receipt
- Demand may have civil effects, but the letter itself neither conclusively adjudicates liability nor creates a power of private seizure
- A lawyer's signature converts the letter into a writ
- Every debtor must surrender all property on demand
- An ordinary demand letter always transfers vehicle ownership
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Articles 1155, 1169–1170.
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