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Villa Crista Monte Realty & Development Corporation vs. Equitable Pci Bank

VILLA CRISTA MONTE REALTY & DEVELOPMENT CORPORATION, PETITIONER, VS. EQUITABLE PCI BANK (NOW KNOWN AS BANCO DE ORO UNIBANK, INC.), AND THE EX-OFFICIO SHERIFF OF QUEZON CITY AND/OR HIS DEPUTY OR AUTHORIZED REPRESENTATIVES, RESPONDENTS.

G.R. No. 208336 | 2018-11-21

D E C I S I O N
 
BERSAMIN, J.:
 
An escalation clause without a concomitant de-escalation clause is void and ineffectual for violating Presidential Decree No. 1684,[1] otherwise known as Amending Further Act No. 2655, As Amended, Otherwise Known as "The Usury Law," as well as the principle of mutuality of contracts unless the established facts and circumstances, as well as the admissions of the parties, indicate that the lender at times lowered the interest rates, or, at least, allowed the borrower the discretion to continue with the repriced rates.

Not all contracts of adhesion are invalid. Only a contract...