BPI Investment Corp V.

CA (2002)
GR No. 133632, 15 February 2002 (assigned to Igual, Geraldine B.)

(nang loan c Roa para sa balay unya wa kabayad, gibaligya niya ang balay sa 3 rd party para silay
mutiwas ug bayad sa loan but arte ang BPI wa musugot ug ni offer na mangloan cla balik ug 500k nila
para naa clay interest makuha. So is contract of loan a consensual contract? #BusinessIsBoomingsiBPI
#char lang)
Facts of the case:
 Frank Roa obtained a loan from AIDC (Ayala Investment Dev Corp- predecessor
of BPI) for the construction of his house and said house were mortgaged to AIDC
to secure the loan.
 In 1980, Roa sold the house and lot to private respondents ALS and Antonion
Litonjua for
P850 k, the 350 K was paid in cash to Roa and the 500K was assumed for Roa’s
indebtedness with AIDC.
 However, AIDC is not willing to extend the interest rate to private respondent but
propose them a new loan for 500k with 20% interest per annum, 1% service fee,
21% penalty rate and a monthly amortization of P9,996.58 payable in ten years.
 On 1981, the mortgaged loan was executed containing the above stipulation
and was perfected on Sept 1982 when the full loan was released to private
respondents worth P7,146.87 purporting to be what was left after full payment of
Roa’s loan.
 On 1984, BPI instituted a foreclosure proceeding to private respondents on the
ground of non payment of mortgaged indebtedness from May 1, 1981 to June
30, 1984.
 A notice of sheriff sale was then published and on 1985, private respondents
filed a civil case against BPI alleging they are not in arrears.
 RTC favored private respondents and award moral, exemplary damages and
atty fees.
 CA affirmed the decision and the suit was dismissed.

ISSUE: Whether or not the contract of loan is a consensual contract?

HELD:
 The court held in negative. The loan contract is not a consensual contract but a
real contract. It is perfected only upon delivery of the object of the contract. In
the case at bar, the loan contract between BPI and ALS was only perfected on
Sept 1982 when the full loan was released and thus the obligation to pay the
amortization should only start on Oct 1982, a month after the perfection of the
contract.
 Contract of loan is a reciprocal obligation and neither party incurs delay if the
other party does not comply with the obligation.