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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Oct 19, 2001 contract-law loan obligations compounding interest penalty clause civil code supreme court

Interest on Penalties: The Limits of Compounding in Loan Obligations

Philippine Supreme Court clarifies when interest may be charged on unpaid penalty charges in loan contracts, and when courts may reduce unconscionable penalties.