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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Unmasking Equitable Mortgages in the Philippines: A Guide for Property Buyers and Sellers
When is a deed of sale actually a loan? Learn how Philippine courts unmask equitable mortgages and protect property buyers and sellers.
Surety vs Guarantor: Understanding Liability in Loan Agreements Under Philippine Law
Philippine Supreme Court clarifies the key difference between a surety and a guarantor, and why a surety cannot invoke defenses meant for the principal debtor.
Breach of Trust When Personal Loans by Court Personnel Undermine Judicial Integrity
Court stenographer suspended for borrowing from a litigant with a pending case—why withdrawal of the complaint did not erase liability.
Contractual Intent Prevails Interpreting Interest Rates in Loan Agreements Under Philippine Law
Philippine Supreme Court rules on how courts interpret interest rates in loan agreements, emphasizing that clear contractual terms prevail over alleged intent.
Usury Law and Loan Obligations: Balancing Lender Rights and Borrower Protection
Philippine Supreme Court ruling on 21% interest validity, 3% monthly surcharge nullity, and borrower obligations under the Usury Law.
Novation Requires a Completely New and Valid Agreement: Loan Restructuring Lessons
The Supreme Court clarifies when restructuring a loan creates novation, and how usurious interest rates are treated under Philippine law.
Loan Agreements and Legal Interest: Written Requirements and Civil Liability After Acquittal
Explaining Eusebio-Calderon v. People: why oral interest agreements are void, when acquittal still leaves civil liability, and the legal interest rules.
Failure to Deny Loan Document Authenticity Under Oath Is an Admission of Debt
Supreme Court rules that a borrower who fails to specifically deny under oath the genuineness of loan documents impliedly admits the debt.
Unilateral Interest Rate Hikes: Mutuality of Contracts Prevails in Loan Agreements
Philippine Supreme Court rules banks cannot unilaterally raise interest rates without borrower consent, citing mutuality of contracts principle.
Can Employers Withhold Wages for Loan Guarantees or Training Bonds? SC Says No
Philippine Supreme Court rules employers cannot withhold wages or benefits as lien for car loan guarantees or training expenses. Learn the limits.
Loan Agreements: The Bank's Obligation to Release Funds and Consequences of Non-Compliance
When can a bank withhold loan proceeds? Philippine National Bank v. RBL Enterprises clarifies the rules on loan release, conditions precedent, and damages.
Bank Liability and Misplaced Trust: Who Pays When Loan Payments Go Astray
When a bank forecloses on property later found to be fraudulently mortgaged, who bears the loss? This case explains the legal protection for innocent mortgagees.
Guaranty vs Direct Liability: Who Pays the Debt When Loans Go South
Philippine law distinguishes guaranty from direct liability. Learn who pays when a borrower defaults and what this means for creditors and guarantors.
Unconscionable Interest Rates When Loan Agreements Become Exploitative
When do monthly interest rates become illegal? The Supreme Court explains the limits of lender freedom in Cuaton v. Salud.
Loan Agreement Validity: Actual Receipt of Proceeds as a Prerequisite
Philippine Supreme Court ruling: executing a promissory note is not enough—actual receipt of loan proceeds is essential for liability.
Foreclosure Publication Requirements: Protecting Property Rights in Rural Bank Loans
Learn how strict publication rules in rural bank foreclosures protect property owners, and why buyers must verify possession before purchasing.
Loan Agreements and Real Estate Mortgages: The Necessity of Actual Fund Transfer
A loan is perfected only upon actual delivery of funds. Checks that are never cashed do not complete a loan or its mortgage.
Liability Beyond Corporate Veil: Solidary Obligations in Loan Agreements
When officers sign loan documents personally, they become solidarily liable with the corporation. Learn the rules from this Philippine Supreme Court case.
When a Sale-Leaseback Is Really a Loan: Cebu Contractors Consortium v. Court of Appeals
The Supreme Court ruled that a sale-leaseback arrangement was actually an equitable mortgage, not a true financing lease, and ordered the contract reformed.
Sale and Leaseback as Disguised Loan: When Financial Leasing Is an Equitable Mortgage
Philippine Supreme Court clarifies when a sale and leaseback is a disguised loan secured by chattel mortgage, not a true financial lease.
Compulsory vs Permissive Counterclaims: When Court Fees Are Not Required in Loan Disputes
Learn when a counterclaim in a loan dispute is compulsory and exempt from docket fees, based on a 2003 Supreme Court ruling.
Mortgage Release: Full Payment Trumps Bank's Restructuring Claim
Full payment of a loan obliges a bank to release the mortgage. The Supreme Court clarifies when a bank's restructuring claim fails.
Distinguishing Loan From Accommodation When Bank Negligence Leads to Liability
When is a deposit a loan or a mere accommodation? The Supreme Court clarifies the distinction and when banks face liability for employee negligence.
Court Employee Reprimanded for Willful Failure to Pay Just Debts
Supreme Court rules on administrative liability of court employee who refused to pay cooperative loans, citing ethical standards.