A borrowed money from Metrobank and executed a mortgage over his house and lot as security. No period has been agreed upon on the date of payment. Before the lapse of ten (10) years, the bank foreclosed the mortgage. Is the bank correct?

Question

Quizplus · Accepted Answer

The correct answer is C because, under the New Civil Code of the Philippines, specifically Article 1197, when an obligation does not specify a period for its performance but it can be inferred that a period was intended, the courts may fix the duration thereof. The bank should have first sought judicial intervention to fix the period of payment before proceeding with foreclosure, especially since no specific period was agreed upon for the payment of the debt.

A Borrowed Money from Metrobank and Executed a Mortgage Over