Legal Insights
Plain-language guides and case briefs on Philippine law — researched from the firm's law library of 184,000+ statutes, Supreme Court decisions, and agency issuances, and written so non-lawyers can understand and act on them.
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When a Bank's Failure to Release Full Loan Invalidates a Mortgage: PNB v. Tajonera
A bank that fails to release the full approved loan breaches its reciprocal obligation, making the mortgage securing that loan unenforceable.
Attorneys Fees and Ethical Boundaries: When Interest Stipulations Fail in Philippine Loan Contracts
Philippine Supreme Court ruling on written interest stipulations, unconscionable rates, and borrower protections under Civil Code Article 1956.
Written Stipulation Is Key: Enforceability of Loan Interest Agreements in the Philippines
Philippine Supreme Court clarifies when 12% interest applies versus 6% in construction disputes, emphasizing written stipulations.
Usurious Interest and Foreclosure: When Unconscionable Loan Terms Void a Foreclosure Sale
A Supreme Court ruling on how excessive interest rates can invalidate a foreclosure sale, and what borrowers and lenders must know.
Mutuality of Contracts: When Banks Cannot Unilaterally Raise Interest Rates
Philippine Supreme Court ruling on Silos v. PNB explains why unilateral interest rate hikes violate the mutuality principle in loan contracts.
Checks and Balances: Authority and Liability in Loan Agreements
When a pre-signed blank check is used to secure a loan without the signer's authority, who bears liability? The Supreme Court clarifies.
Mutuality of Contracts: Banks Cannot Unilaterally Impose Interest Rate Hikes on Loans
Philippine National Bank v. Manalo clarifies that banks cannot unilaterally raise loan interest rates without borrower consent under Article 1308 of the Civil Code.
Protecting Homebuyers: PD 957 Prevails Over Bank Mortgages in Subdivision Sales
Supreme Court rules banks must honor PD 957 protections for subdivision buyers, even when properties are mortgaged to secure developer loans.
Premature Foreclosure: Protecting Mortgagors' Rights Before Default
Philippine Supreme Court rules that foreclosing a mortgage before the debtor defaults on the principal loan is void and ineffectual.
Breach of Contract vs Loan Obligations: Independent Liabilities in Philippine Law
Philippine Supreme Court clarifies that a debtor's separate contract breach does not extinguish loan obligations to a creditor.
Piercing the Corporate Veil in Loan Agreements: What the Supreme Court Requires
The Supreme Court clarifies when courts may pierce the corporate veil to hold stockholders personally liable for corporate loans.
Foreclosure Validity: Banks Can Foreclose Despite Disputed Loan Agreements
Supreme Court ruling on when banks may foreclose despite disputed interest rates, and the legal interest that applies after default.
Burden of Proof in Loan Obligations: Notice of Loss in Chattel Mortgage Agreements
When a mortgaged vehicle is stolen, borrowers must prove they notified the bank. Learn the burden of proof rules from a Supreme Court ruling.
When Loan Agreements Clash: Mutuality, Rescission, and the Limits of Bank Discretion
A Supreme Court ruling on when a bank's refusal to release loan proceeds amounts to a slight breach, not grounds for rescission.
When Checks Prove a Loan: The Supreme Court Ruling on Evidence of Indebtedness
The Supreme Court clarifies when checks alone establish a loan obligation and shift the burden of proof to the debtor under Philippine law.
Bank's Duty of Diligence in Home Loans: Comsavings Bank v. Capistrano
When a bank makes a borrower pre-sign a house completion certificate, it breaches its duty of highest diligence and may be liable for damages.
Trust Receipts vs Loans: When Intent Defines the Contract
Supreme Court clarifies when a trust receipt is really a loan, acquitting a corporate officer of estafa under PD 115.
When a Trust Receipt Is Really a Loan: Acquittal in Estafa Cases
The Supreme Court acquits a corporate officer of estafa under the Trust Receipts Law, ruling that transactions the bank knew were not for resale are simple loans, not trust receipts.
Waiver of Demand and Interest Rate Limits in Philippine Loan Agreements
The Supreme Court clarifies when demand is unnecessary before default and why courts reduce excessive stipulated interest rates.
Public Space vs Private Gain: When Loan Agreements Undermine Public Land Rights
Supreme Court rules loans secured by public plaza are void; public dominion property cannot be collateralized for commercial ventures.
Judicial Consignation: Paying a Loan When the Creditor’s Identity Is Unclear
When two entities claim the right to collect a debt, judicial consignation lets the debtor deposit payment in court and be released.
Mutuality of Contracts: Borrower's Right to Inspect Loan Sale Documents Under Rule 27
Supreme Court rules borrowers may compel production of loan sale agreements to verify consideration and exercise redemption rights under Article 1634.
Equitable Mortgage vs Absolute Sale: How Philippine Courts Protect Borrowers
A Supreme Court ruling shows that a deed of sale used to secure a loan may be treated as an equitable mortgage, not a transfer of ownership.
Trust Receipt vs. Loan: When a Security Agreement Becomes a Debt
Philippine Supreme Court ruling clarifies when a trust receipt arrangement is actually a loan, affecting liability and criminal exposure.