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purpose of using the money to pay for the hospital expenses incurred for the medicationof his wife. Touched with his compassionate heart, plaintiff lent the aforesaid amount on

the condition that he is repaid on July 14, 2012 as provided for in the promissory note

executed by the plaintiff.

On Aug 14, 2012, defendant received the demand letter from the plaintiff. Uponreading the demand letter, in truth and in fact, defendant scampered to look for funds in

order the settle the amount owed to the plaintiff. On September 22, 2012, defendant went

to the residence of the plaintiff in order to effect payment. However, the plaintiff was not

physically around at that time. Defendant decided to tender the amount of Pesos: FiveHundred Thousand Pesos Only (P 500,000.00) demanded from him to the plaintiffs son,

Miguel A. Bernal, of legal age, and living with plaintiff within the same abode. Receipt

of the amount is evidenced by a written acknowledgment by the plaintiffs daughter.

However, plaintiff claims to have not received the payment from the defendant.

Defendant claims otherwise as stipulated in the foregoing, hence this instant case.

POSSIBILITY OF AMICABLE SETTLEMENT

Defendant owes much gratitude to the plaintiff and his family. Over the years, plaintiff

has been a good Samaritan in the community. It is of paramount interest of the defendant

to amicably settle the case. Defendant is very much willing to pay for a legal interest rateof 10% per annum and the attorneys fees of Pesos: Fifty Eight Thousand Five Hundred

(P 58,500.00) as prayed for by the plaintiff in his complaint.

PROPOSED STIPULATION OF FACTS AND/OR ADMISSION OF FACTS

1) That plaintiff is not into the business of lending money for interest or for the purpose

of deriving profits therefrom.

2) That Miguel A. Bernal, of legal age, single, is the son of the plaintiff living with him

within the same abode.

3) That Miguel A. Bernal does not suffer from any impairment of her mental faculties

that impairs her legal capacity to enter into a contract or whatever of the same nature.

4) That the signature appearing on the Acknowledgment Receipt marked as Exhibit B

hereof is that of Miguel A. Bernal.

5) That on September 22, 2012, on or about 3PM to 4PM, plaintiff was not around or

within the premises of his residence.

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ISSUES TO BE TRIED OR RESOLVED

Whether or not the payment made to the son of the plaintiff who lives with him in thesame abode is a valid tender of payment as if it was made directly to the plaintiff

therefore extinguishing the obligation.

EXHIBITS MARKED AS DOCUMENTS TO BE PRESENTED

The following documents are to be presented:

Exhibit A

A machine copy of the promissory note executed by defendant

Exhibit B

A machine copy of the acknowledgement receipt by Miguel A. Bernal

Exhibit C

A machine copy of the demand letter by the plaintiff to the defendant

Exhibit D

A sample specimen signature of the plaintiff

Exhibit E

A sample specimen signature of the Miguel A. Bernal

Exhibit F

A sample specimen signature of the defendant. The defendant reserves his right to

present other documents not herein listed may be deemed necessary.

WITNESSES TO BE PRESENTED

1) The defendant himselfto testify that he has effected the payment;2) The wife of the defendant, Ava W. Lunato testify the fact of the payment;3) The children of the defendantto testify the fact of payment;

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4) Atty. Paolo S. Nutinito testify that the funds used by defendant to pay hisobligation was in fact from him;

5) Miguel A. Bernalto testify that he received the payment of the defendant;6) Defendant reserves the right to present other witnesses not herein enumerated as

deemed necessary.

The testimonies of the witnesses would not consume more than 15 minutes on direct

examination, and another 15 minutes on cross examination.

DATES OF HEARING

The defendant would depend upon the dates agreed upon during the pretrial.

RESPECTFULLY SUBMITTED. Iloilo City, Philippines. February 27, 2013.

Counsel for the Defendant

Copy furnished by personal service:

Received by:_____________Date: ____________________