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  • Almeda vs. CA (256 SCRA 292)

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    Ike Gaamil
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    The plaintiff took out a loan from the defendant bank for $100,000 at an initial interest rate of 12% per annum to finance a property purchase. The credit agreement allowed the bank to increase the interest rate within legal limits upon notice to the plaintiff. The bank later increased the interest rate to 18% for the remaining period of the loan. The plaintiff argued this was in violation of the credit agreement. The court ruled that any stipulation in a contract that results in an unreasonable outcome in favor of one party is invalid. A clause allowing unilateral amendment of contract terms by one party renders the contract invalid. While interest rate adjustment clauses are generally valid, they must be mutually agreed and not violate principles of essential contractual

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    1. Almeda vs. CA (256 SCRA 292)

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    The plaintiff took out a loan from the defendant bank for $100,000 at an initial interest rate of 12% per annum to finance a property purchase. The credit agreement allowed the bank to increase the interest rate within legal limits upon notice to the plaintiff. The bank later increased the interest rate to 18% for the remaining period of the loan. The plaintiff argued this was in violation of the credit agreement. The court ruled that any stipulation in a contract that results in an unreasonable outcome in favor of one party is invalid. A clause allowing unilateral amendment of contract terms by one party renders the contract invalid. While interest rate adjustment clauses are generally valid, they must be mutually agreed and not violate principles of essential contractual

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    © All Rights Reserved
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    11 views1 page

    Almeda vs. CA (256 SCRA 292)

    Uploaded by

    Ike Gaamil
    The plaintiff took out a loan from the defendant bank for $100,000 at an initial interest rate of 12% per annum to finance a property purchase. The credit agreement allowed the bank to increase the interest rate within legal limits upon notice to the plaintiff. The bank later increased the interest rate to 18% for the remaining period of the loan. The plaintiff argued this was in violation of the credit agreement. The court ruled that any stipulation in a contract that results in an unreasonable outcome in favor of one party is invalid. A clause allowing unilateral amendment of contract terms by one party renders the contract invalid. While interest rate adjustment clauses are generally valid, they must be mutually agreed and not violate principles of essential contractual

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    © All Rights Reserved
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    of 1

    NO.

    :
    timeda v GA. as SCRA 22) DATE:

    FACtS
    On Varik darer in 1 the PMB rankd the spaues Aimeda, He petfo
    Sare low redt acomodohons toal, o Pi, 00, 00 peyark in a_penod of
    St years at an fertrt ratc of P21% per anymun lo cure he loan, the
    poukts eeated a Re Frtatr Mortaae Contradt aeing a pade of her
    ve in kaai_and he buidng reced theron,
    A cedit aqeeont was alo eecded by he partes, whch_prouidas: he
    Bawnk retorne te nght b inaeae he intyet rale viin the linits alowed
    by la a te. pravick! tr he interet rat on thot aumoclatons
    dhalbe cowmpardiny dearcad mhe wtnt h u ayphcndie maumn
    inerts rat i edu by law or ky te ondam Board. h eta cau the
    adjutment n hu maed rae aged upon Ma tak ket on t tkhuty
    dak of He incrae on deoea of the maimh eRE Pate.
    The Aneado ma everalparhal paymnt on he oan totaln to
    7,5, 4. , asbtanttd partn wich wal applieb aed idtenst
    The PNE Mer e pehtoerc proestobons, faird the irteret rale fo 2
    alegedly padnart fo the croit ageemot 3n tHror noeaedit ba ägh
    %bete the loam matur

    KVE
    Whetor or e PNB war authoized to mataic ta Mtrcst rats e r
    te Creoit agrrememt

    RUL
    No. y atvedt whion appean b kauly yhtd h fabr of om Of te pai
    0 t ed tb an wmonsconebe rsult i vad. iewke anaj stpulaion garding
    He yalidiy Or aplane of tho ontrad hh et peky b m wil of one of
    involid. The bncmg efet of anuy a n t betvem_pavties to a
    CoVntra _premed on two sette)_prpúples Piat ay obligeton ening om
    contract ha he force of aw berween the pas ad hat #a mtbe
    Mutualiy brhuen the porte baet on i r econtial dguedity. wie ntset
    colathon dauee ih oedt dgtennt_zre perfecty vakd and do nct onheae/k pvble_
    poliay, they ae swject b lac.
    VICTORY

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