Text of the provision
Art. 1250. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the basis of payment, unless there is an agreement to the contrary.
(n)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
In case of extraordinary inflation or deflation of the stipulated currency, the value at the time the obligation was established is the basis of payment, unless otherwise agreed. Courts apply this narrowly, only to truly extraordinary, officially-recognized currency swings.
Questions about this provision
Related provisions
- Article 1249 — Currency of Payment; Payment by Instruments.
- Article 1251 — Place of Payment.
Cases citing this article
- Eufemia Almeda, et al. vs. Bathala Marketing Industries, Inc, G.R. No. 150806, January 28, 2008 — read the decision on LawPhil →
- Telengtan Brothers & Sons, Inc. vs. United States Lines, Inc. et al, G.R. No. 132284, February 28, 2006 — read the decision on LawPhil →
- Citibank, N.A., et al. vs. Modesta R. Sabeniano, G.R. No. 156132, February 6, 2007 — read the decision on LawPhil →
- Lucia R. Singson vs. Caltex (Philippines), Inc, G.R. No. 137798, October 4, 2000 — read the decision on LawPhil →
- Maria Paz V. Nepomuceno etc. vs. City of Surigao & Salvador Sering etc, G.R. No. 146091, July 28, 2008 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.