Short answer. You must pay exactly at the time and place your contract specifies. Article 1582 of the Civil Code binds the buyer to accept delivery and pay at the time and place stipulated. If the contract is silent on these, payment is due at the time and place of delivery.
What the law says
The vendee is bound to accept delivery and to pay the price of the thing sold at the time and place stipulated in the contract.
Civil Code, Article 1582 — Obligations of the Vendee (Accept and Pay). Read the full provision →
The rule: contract terms control payment
Article 1582 of the Civil Code establishes the buyer's two primary obligations: to accept delivery and to pay the price. The article then says plainly that both obligations are performed at the time and place stipulated in the contract. If the parties agreed to a specific payment date and a specific place, those terms are what govern. The buyer cannot unilaterally change the date or tender payment at a different location and claim to have fulfilled the obligation.
When the contract is silent on time and place
Not every contract spells out when and where payment should happen. When the contract does not specify the time and place of payment, Article 1582 provides a default: payment must be made at the time and place of the delivery of the thing sold. The practical implication is that payment and delivery happen together — the buyer pays, the seller hands over the goods. This prevents a situation where the seller delivers without getting paid, or the buyer pays without receiving anything, unless they have agreed to something different.
Acceptance of delivery is also an obligation
Article 1582 bundles payment with another obligation the buyer often overlooks: the obligation to accept delivery. A buyer who simply refuses to take the goods is not just being uncooperative — they are breaching a legal obligation. If the seller tenders delivery at the right time and place and the buyer fails to accept, the buyer is in default on this obligation, not just on payment. This matters in cases where the seller wants to rescind, claim damages, or enforce the contract — the buyer's refusal to accept delivery is itself a breach.
What happens if a party defaults
If you, as a buyer, fail to pay at the time and place the contract requires, you are in default. The seller has remedies available: they may demand performance, rescind the contract, or claim damages for the delay or breach. If the seller fails to deliver at the time and place you agreed, the reverse applies. Both sides are bound by what the contract says. If there is a dispute about whether a party was in default — for example, because the other side changed the delivery location or altered the payment terms informally — the original contract terms are the starting point. A lawyer can help you understand how the facts of your specific situation map to your rights.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Tomas K. Chua vs. Court of Appeals, et al, G.R. No. 119255, April 9, 2003 — read the decision on LawPhil →
- ACE Foods, Inc. vs. Micro Pacific Technologies Co., Ltd, G.R. No. 200602, December 11, 2013 — read the decision on LawPhil →
- D.M. Wenceslao and Associates Inc., et al. vs. Readycon Trading Construction Corp, G.R. No. 154106, June 29, 2004 — read the decision on LawPhil →