Cruz Vs Gruspe, GR 191431, March 13, 2013
Contracts are obligatory no maer what their forms may be, whenever the essenal requisites for theirvalidity are present. In determining whether a document is an adavit or a contract, the Court looksbeyond the tle of the document, since the denominaon or tle given by the pares in their documentis not conclusive of the nature of its contents. In the construcon or interpretaon of an instrument, theintenon of the pares is primordial and is to be pursued. If the terms of the document are clear andleave no doubt on the intenon of the contracng pares, the literal meaning of its spulaons shallcontrol. If the words appear to be contrary to the pares’ evident intenon, the laer shall prevail overthe former. In order that the debtor may be in default, it is necessary that the following requisites be present: (1) that the obligaon be demandable and already liquidated; (2) that the debtor delays performance; and (3) that the creditor requires the performance judicially and extrajudicially.—The 15% interest (later modied by the CA to be 12%) was computed from November 15, 1999—the date spulated in the JointAdavit of Undertaking for the payment of the value of Gruspe’s car. In the absence of a nding by the lower courts that Gruspe made a demand prior to the ling of the complaint, the interest cannot be computed from November 15, 1999 because unl a demand has been made, Cruz and Leonardo could not be said to be in default. Default generally begins from the moment the creditor demands the performance of the obligaon. In this case, demand could be considered to have been made upon the ling of the complaint on November 19, 1999, and it is only from this date that the interest should be computed