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Spouses Eduardo and Lydia Silos Vs. Philippine National Bank

SPOUSES EDUARDO and LYDIA SILOS, Petitioners, vs. PHILIPPINE NATIONAL BANK, Respondent.

G.R. No. 181045 | 2014-07-02

SECOND DIVISION
 
DECISION

DEL CASTILLO, J.:
 
In loan agreements, it cannot be denied that the rate of interest is a principal condition, if not the most important component. Thus, any modification thereof must be mutually agreed upon; otherwise, it has no binding effect. Moreover, the Court cannot consider a stipulation granting a party the option to prepay the loan if said party is not agreeable to the arbitrary interest rates imposed. Premium may not be placed upon a stipulation in a contract which grants one party the right to choose whether to continue with or withdraw from the agreement if it...