This case has been cited 2 times or more.
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2013-06-05 |
PERALTA, J. |
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| Parties are free to enter into agreements and stipulate as to the terms and conditions of their contract, but such freedom is not absolute. As Article 1306 of the Civil Code provides, "The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy." Hence, if the stipulations in the contract are valid, the parties thereto are bound to comply with them, since such contract is the law between the parties. In this case, petitioners and respondent bank agreed upon on a 23% p.a. interest rate on the P1.7 million loan. However, petitioners now contend that the interest rate of 23% p.a. imposed by respondent bank is excessive or unconscionable, invoking our ruling in Medel v. Court of Appeals,[18] Toring v. Spouses Ganzon-Olan,[19] and Chua v. Timan.[20] | |||||
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2010-08-25 |
BRION, J. |
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| We cannot sustain the ballooned obligation of P384,660.00, claimed in the Statement of Account sent by the petitioner, [53] sans any evidence of how this amount was arrived at. Additionally, a daily interest of P641.10 or P19,233.00 per month for a P200,000.00 loan is patently unconscionable. While parties are free to stipulate on the interest to be imposed on monetary obligations, we can step in to temper the interest rates if they are unconscionable. [54] | |||||