Article 1145 of the Civil Code: Six years for oral contracts
Status: In force
What does Article 1145 say?
The following actions must be commenced within six years:
(1) Upon an oral contract;
(2) Upon a quasi-contract.
What does it mean in plain language?
Article 1145 of the Civil Code gives six years to file a case on an oral contract or on a quasi-contract. An oral contract is a deal made by word of mouth, such as a verbal loan between friends. A quasi-contract is a duty the law creates to prevent unjust enrichment, such as the duty to return money sent by mistake. After six years without an interruption, the other side can raise prescription as a defense.
The period is shorter than for written contracts. Under Article 1144, a case on a written contract has ten years. So the same loan can have a different deadline depending on whether it was put in writing.
How does it work in real life?
Leo's cash loan to his friend
Leo lent his friend ₱8,000 in cash, to be repaid in three months. Nothing was written. The loan is an oral contract, so Leo has six years from the due date to sue under Article 1145(1). He will need other proof of the loan, such as witnesses or records of the money he handed over. He cannot claim interest that was agreed only verbally (Article 1956).
Grace's mistaken transfer
Grace meant to send ₱5,000 to her sister but typed the wrong account number. The money went to a stranger, who will not return it. The stranger received money he had no right to, by mistake, so he must return it (Article 2154). A case to recover it is an action upon a quasi-contract: six years under Article 1145(2).
Ramon's old verbal loan
Ramon's verbal loan to a co-worker fell due in 2018. He never sent a written demand, and the co-worker never signed anything admitting the debt. By 2024, the six years had run. If Ramon sues now, the co-worker can raise prescription as a defense.
These are made-up examples to show how the rule works. They are not advice for any real case.
What does this mean in practice?
- If you lend money by word of mouth, keep any proof you have: transfer records, receipts, messages and the names of people who saw the deal.
- A written demand letter interrupts the period (Article 1155). For the barangay step before a case, see do I need to go to the barangay first?
- For all the periods side by side, see the table of prescription of civil actions and how many years can you collect a debt?
- For free or low-cost legal help, see where to find legal help.
What does Article 1145 say?
The following actions must be commenced within six years: (1) Upon an oral contract; (2) Upon a quasi-contract.
In plain words, you have six years to go to court:
- On an oral contract. A verbal agreement that is valid and enforceable, such as a verbal loan, a verbal agreement to do a job, or a verbal sale.
- On a quasi-contract. An obligation that arises without any agreement, because the law does not allow one person to keep a benefit that belongs to another.
Is a verbal agreement binding at all?
Usually yes. Article 1356 says contracts are obligatory "in whatever form they may have been entered into", as long as the essential requisites for validity are present.
Some verbal agreements cannot be enforced in court without a signed writing, unless they were ratified. These are the agreements covered by the Statute of Frauds in Article 1403, such as a lease longer than one year or a promise to pay another person's debt. For those, the question is not only the deadline but whether the agreement can be proved in court at all. See is a verbal agreement binding?
What is a quasi-contract?
Article 2142 of the Civil Code explains it:
Certain lawful, voluntary and unilateral acts give rise to the juridical relation of quasi-contract to the end that no one shall be unjustly enriched or benefited at the expense of another.
The best-known example is payment by mistake. Article 2154 says that if something is received when there is no right to demand it, and it was delivered "through mistake, the obligation to return it arises." A case to get it back is an action upon a quasi-contract, so the six years of Article 1145 apply.
When do the six years start?
Article 1145 does not set its own starting point. The general rule of Article 1150 applies: the time is counted "from the day they may be brought". For an oral loan with a due date, the lender can usually sue once the due date passes without payment.
The six years can be interrupted by filing a case in court, by a written extrajudicial demand by the creditor, or by a written acknowledgment of the debt by the debtor (Article 1155). Note the word "written". A spoken reminder or a spoken promise to pay is not on the list.
Frequently asked questions
How long do you have to sue on a verbal agreement in the Philippines?
Six years. Article 1145 of the Civil Code says an action upon an oral contract must be commenced within six years.
How many years can you collect a verbal loan?
An action to collect a loan agreed only by word of mouth falls under Article 1145(1): six years. A loan in a signed writing has ten years under Article 1144.
What is a quasi-contract?
Article 2142 says certain lawful, voluntary and unilateral acts create a quasi-contract, so that no one is unjustly enriched at another's expense. A common example is money paid by mistake: Article 2154 says the person who received it must return it.
When do the six years start?
Article 1150 says the time is counted from the day the action may be brought, unless a special rule says otherwise. For an oral loan with a fixed due date, that is usually once the due date passes without payment.
Does a text or verbal reminder stop the six years?
Article 1155 lists a court case, a written extrajudicial demand by the creditor and a written acknowledgment by the debtor. A verbal demand is not on that list. Whether a text message or e-mail counts as written is a question for a lawyer.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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