1308,mutuality of contracts

7/24/2019 1308,Mutuality of Contracts

1/18

PNB V. CA

Facts:

April 7, 1982- private respondents, as

owners of a NACIDA-registered enterprise,otained a loan !nder t"e Cottage Ind!str#$!arant# %oan F!nd &CI$%F' fro( petitioner,)N*, in t"e a(o!nt of )+, as evidenced

# a Credit Agree(ent ."e loan was to ea(orti/ed over a period of 0 #ears to end onarc" 2, 198+ at 12 interest ann!all#

."e said loan was sec!red # a 3eal 4stateortgage over an agric!lt!ral land andC"attel ortgage over a t"er(o plastic-for(ing (ac"ine

."e credit agree(ent provided t"at:

o ."e *AN5 reserves t"e rig"t to increase

t"e interest rate wit"in t"e li(its allowed #law at an# ti(e depending on w"atever

polic# it (a# adopt in t"e f!t!re6 )rovided,t"at t"e interest rate on t"is acco((odations"all e correspondingl# decreased in t"eevent t"at t"e applicale (ai(!( interestis red!ced # law or # t"e onetar# *oardIn eit"er case, t"e ad!st(ent in t"e interestrate agreed !pon s"all tae eect on t"eeectivit# date of t"e increase or decreasein t"e (ai(!( interest rate

."e pro(issor# note, in t!rn, a!t"ori/ed)N* to raise t"e interest, at an# ti(ewit"o!t notice, e#ond t"e stip!lated rate of

12 !t onl# ;wit"in t"e li(its allowed #law>-+>+ &1991' t"e Co!rt "eld G

."e !nilateral action of t"e )N* inincreasing t"e interest rate on t"e privaterespondents loan violated t"e (!t!alit# ofcontracts ordained in Article 108 of t"eCivil Code:

Art 108 ."e contract (!st ind ot"contracting parties6 its validit# orco(pliance cannot e left to t"e will of oneof t"e(


2/18

In order t"at oligations arising fro(contracts (a# "ave t"e force or lawetween t"e parties, t"ere (!st e(!t!alit# etween t"e parties ased ont"eir essential e@!alit# A contractcontaining a condition w"ic" (aes itsf!l=ll(ent dependent ecl!sivel# !pon t"e!ncontrolled will of one of t"e contracting

parties, is void ence, even ass!(ingt"at t"e loan agree(ent etween t"e)N* and t"e private respondent gave t"e)N* a license &alt"o!g" in fact t"ere wasnone' to increase t"e interest rate at willd!ring t"e ter( of t"e loan, t"at licensewo!ld "ave een n!ll and void for eingviolative of t"e principle of (!t!alit#essential in contracts It wo!ld "ave investedt"e loan agree(ent wit" t"e c"aracter of acontract of ad"esion, w"ere t"e parties donot argain on e@!al footing, t"e weaer

part#s &t"e detor' participation eingred!ced to t"e alternative Hto tae it orleave itH E!c" a contract is a veritaletrap for t"e weaer part# w"o( t"e co!rts of

!stice (!st protect against a!se andi(position &Citation o(itted'

)rivate respondents are not also estoppedfro( assailing t"e !nilateral increases ininterest rate (ade # petitioner an Noone receiving a proposal to c"ange a

contract to w"ic" "e is a part#, is oliged toanswer t"e proposal, and "is silence per secannot e constr!ed as an acceptance Int"e case at enc", t"e circ!(stances do nots"ow t"at private respondents i(plicitl#agreed to t"e proposed increases in interestrate w"ic" # an# standard were too s!ddenand too sti

ALLIED BANKING V. CA

FACTS:

Spouses Filemon Tanqueco and Lucia Domino!

Tanqueco o"ned a #$%!squa&e me'e& lo' loca'ed a'

No. % Sa&mien'o S'&ee' co&ne& (ui&ino )i*"a+,

No-alic*es, (ueon Ci'+, co-e&ed /+ TCT No.

$01223 in '*ei& name. 4n 05 6une $327 '*e+ leased

'*e p&ope&'+ 'o pe'i'ione& Allied Ban8in

Co&po&a'ion 9ALLIED ;o& a mon'*l+ &en'al o;

P$,555.55 ;o& '*e ;i&s' '*&ee 90 +ea&s, ad

Pu&suan' 'o '*ei& lease a&eemen', ALLIED

in'&oduced an imp&o-emen' on '*e p&ope&'+

consis'in o; a conc&e'e /uildin "i'* a ;loo& a&ea

o; 0?5!squa&e me'e&s "*ic* i' used as a /&anc*

o;;ice. As s'ipula'ed, '*e o"ne&s*ip o; '*e /uildin

"ould /e '&ans;e&&ed 'o '*e lesso&s upon '*e

e@pi&a'ion o; '*e o&iinal 'e&m o; '*e lease.

Some'ime in Fe/&ua&+ $377 '*e Tanqueco spouses

e@ecu'ed a deed o; dona'ion o-e& '*e su/ is -oid ;o& /ein


3/18

po'es'a'i-e o& -iola'i-e o; '*e p&inciple o; mu'uali'+

o; con'&ac's unde& A&'. $057 o; '*e Ci-il Code

ule:

No. Decision o; '*e Cou&' o; Appeals is

EVESED and SET ASIDE.

A&'icle $057 o; '*e Ci-il Code e@p&esses "*a' is

8no"n in la" as '*e p&inciple o; mu'uali'+ o;

con'&ac's. I' p&o-ides '*a' >'*e con'&ac' mus' /ind

/o'* '*e con'&ac'in pa&'ies i's -alidi'+ o&

compliance canno' /e le;' 'o '*e "ill o; one o;

'*em.> T*is /indin e;;ec' o; a con'&ac' on /o'*

pa&'ies is /ased on '*e p&inciple '*a' '*e o/lia'ions

a&isin ;&om '*e con'&ac's *a-e '*e ;o&ce o; la"

/e'"een '*e con'&ac'in pa&'ies, and '*e&e mus' /e

mu'uali'+ /e'"een '*em /ased essen'iall+ on '*ei&

equali'+ unde& "*ic* i' is &epunan' 'o *a-e one

pa&'+ /ound /+ '*e con'&ac' "*ile lea-in '*e o'*e&

;&ee '*e&e;&om. T*e ul'ima'e pu&pose is 'o &ende&-oid a con'&ac' con'ainin a condi'ion "*ic* ma8es

i's ;ul;illmen' dependen' solel+ upon '*e

uncon'&olled "ill o; one o; '*e con'&ac'in pa&'ies.

An e@p&ess a&eemen' "*ic* i-es '*e lessee '*e

sole op'ion 'o &ene" '*e lease is ;&equen' and

su/ma+ /e

&ene"ed ;o& a li8e 'e&m a' '*e op'ion o; '*e lessee,>

"e sus'ain pe'i'ione&s con'en'ion '*a' i's e@e&cise

o; '*e op'ion &esul'ed in '*e au'oma'ic e@'ension o;

'*e con'&ac' o; lease unde& '*e same 'e&ms and

condi'ions. T*e su/ As "e see i', '*e onl+ 'e&m on

"*ic* '*e&e *as /een a clea& a&eemen' is '*e

pe&iod o; '*e ne" con'&ac', i.e., ;ou&'een 9$? +ea&s,"*ic* is e-iden' ;&om '*e clause >ma+ /e &ene"ed

;o& a li8e 'e&m a' '*e op'ion o; '*e lessee,> '*e

p*&ase >;o& a li8e 'e&m>&e;e&&in 'o '*e pe&iod. I' is

silen' as 'o "*a' '*e speci;ic 'e&ms and condi'ions

o; '*e &ene"ed lease s*all /e. S*all i' /e '*e same

'e&ms and condi'ions as in '*e o&iinal con'&ac', o&

s*all i' /e unde& '*e 'e&ms and condi'ions as ma+ /e

mu'uall+ a&eed upon /+ '*e pa&'ies a;'e& '*e

e@pi&a'ion o; '*e e@is'in lease

G.R. No. 161718 December 14, 2011


4/18

MANILA INTERNATIONAL AIRPORT

AUTHORITY,Pe'i'ione&,

-s.

DING ELAYO !PORT! "ENTER,

IN".,esponden'.

Be;o&e s is a Pe'i'ion ;o& e-ie" unde& ule ?# o;

'*e ules o; Cou&' o; '*e Decision$da'ed 6anua&+ 7,

%55? o; '*e Cou&' Appeals in CA!G.. CV No.

17272, a;;i&min '*e Decision%da'ed 4c'o/e& %3,

$333 o; B&anc* $$$ o; '*e eional T&ial Cou&'

9TC o; Pasa+ Ci'+ in Ci-il Case No. 77?2, "*ic*

&an'ed '*e Complain' ;o& In


5/18

app&aised -alue o; '*e *o'el /uildin and

pe&manen' imp&o-emen's a' '*e 'ime o; e@pi&a'ion

o; T"en'+!Fi-e 9%# +ea&s lease pe&iod, pa+a/le

annuall+.?

Su/sequen'l+, in a T&ans;e& o; Lease i*'s and

E@is'in Imp&o-emen's da'ed Sep'em/e& 05, $32?,

Salem con-e+ed in ;a-o& o; Din Vela+o E@po&'

Co&po&a'ion 9Vela+o E@po&', ;o& '*e conside&a'ion

o; P$,5#5,555.55, i's lease*old &i*'s o-e& a po&'ion

o; Lo' %!A, measu&in a/ou' $#,#0? squa&e me'e&s,

"i'* '*e imp&o-emen's '*e&eon, consis'in o; an

un;inis*ed cinema!'*ea'e&. Acco&dinl+, pe'i'ione&

and Vela+o E@po&' e@ecu'ed a Con'&ac' o; Lease

da'ed No-em/e& %1, $32? pe&'ainin 'o '*e

a;o&emen'ioned leased po&'ion o; Lo' %!A.

In 'u&n, Vela+o E@po&' e@ecu'ed a T&ans;e& o; Lease

i*'s da'ed Ap&il %2, $321 /+ "*ic* i' con-e+ed'o &esponden', ;o& '*e conside&a'ion

o; P#55,555.55, i's lease*old &i*'s o-e& an 7,?7$!

squa&e me'e& a&ea 9su/


6/18

demand, '*e LESS4 s*all den+ '*e LESSEE o;

'*e ;u&'*e& use o; '*e leased p&emises and Mo& an+ o;

i's ;acili'ies, u'ili'ies and se&-ices. @ @ @.3

T*e Con'&ac' o; Lease p&o*i/i's &esponden' ;&om

'&ans;e&&in i's lease*old &i*'s, enain in an+

o'*e& /usiness ou'side '*ose men'ioned in said

Con'&ac', and su/le''in '*e p&emises "*e'*e& in

"*ole o& in pa&', '*us:

$1. T*e LESSEE a&ees no' 'o assin, sell, '&ans;e&

o& mo&'ae *is &i*'s unde& '*is a&eemen' o&

su/le' '*e "*ole o& pa&' o; p&emises co-e&ed /+ i'

'o a '*i&d pa&'+ o& pa&'ies no& enae in an+ o'*e&

/usiness ou'side o; '*ose men'ioned in '*is

con'&ac'. Viola'ion o; '*is p&o-ision s*all also /e a

&ound ;o& &e-oca'ion o; '*e lease con'&ac' "i'*ou'

need o;


7/18

"e&e su/se&-ices and ;unc'ions.>

@ @ @ @

Assumin '*a' '*e inc&ease in &en'al o; IAA

p&ope&'+ is au'*o&ied /+ B.P. No. 0%# and inis'&+

4&de& No. 1!70, suc* inc&ease as o&de&ed in +ou&

mo&a'o&ium &en'al &a'e inso;a& as i' is made

applica/le 'o DVSC is no' -alid.

T*e inc&ease "*ic* is a&ound %,555 pe&cen' o& %5

'imes a/o-e p&esen' &en'al &a'e is un&easona/l+

*i*. Bo'* B.P. No. 0%# and inis'&+ 4&de& No. 1!

70 p&esc&i/ed onl+ >


8/18

al&ead+ /e '&ans;e&&ed 'o '*e accoun' o; pe'i'ione& in

li*' o; '*e e@pec'ed 'u&n!o-e& o; '*e su/


9/18

'*e lease &en'als o; &esponden' ;o& '*e su/


10/18

a pu&el+ e@ecu'o&+ con'&ac' and a' mos' con;e&s a

&i*' 'o o/'ain a &ene"al i; '*e&e is compliance "i'*

'*e condi'ions on "*ic* '*e &i*' is made 'o

depend. T*e &i*' o; &ene"al cons'i'u'es a pa&' o;

'*e lessees in'e&es' in '*e land and ;o&ms a

su/s'an'ial and in'e&al pa&' o; '*e a&eemen'.

T*e ;ac' '*a' suc* op'ion is /indin onl+ on '*e

lesso& and can /e e@e&cised onl+ /+ '*e lessee does

no' &ende& i' -oid ;o& lac8 o; mu'uali'+. A;'e& all,

'*e lesso& is ;&ee 'o i-e o& no' 'o i-e '*e op'ion 'o

'*e lessee. And "*ile '*e lessee *as a &i*' 'o elec'

"*e'*e& 'o con'inue "i'* '*e lease o& no', once *e

e@e&cises *is op'ion 'o con'inue and '*e lesso&

accep's, /o'* pa&'ies a&e '*e&ea;'e& /ound /+ '*e

ne" lease a&eemen'. T*ei& &i*'s and o/lia'ions

/ecome mu'uall+ ;i@ed, and '*e lessee is en'i'led 'o

&e'ain possession o; '*e p&ope&'+ ;o& '*e du&a'ion o;

'*e ne" lease, and '*e lesso& ma+ *old *im lia/le;o& '*e &en' '*e&e;o&. T*e lessee canno' '*e&ea;'e&

escape lia/ili'+ e-en i; *e s*ould su/sequen'l+

decide 'o a/andon '*e p&emises. u'uali'+ o/'ains

in suc* a con'&ac' and equali'+ e@is's /e'"een '*e

lesso& and '*e lessee since '*e+ &emain "i'* '*e

same ;acul'ies in &espec' 'o ;ul;illmen'.?7

Pa&a&ap* $2 o; '*e Con'&ac' o; Lease da'ed a+

$?, $321 /e'"een pe'i'ione& and &esponden' solel+

&an'ed 'o &esponden' '*e op'ion o; &ene"in '*e

lease o; '*e su/


11/18

e@p&essl+ p&o-ides ;o& -a&ia'ions in '*e 'e&ms o; '*e

con'&ac' 'o /e &ene"ed.

T*e same p&inciple is up*eld in Ame&ican La"

&ea&din '*e &ene"al o; lease con'&ac's. In #5 Am.

6u&. %d, Sec. $$#3, a' p. ?#, "e ;ind '*e ;ollo"in

ci'a'ions: T*e &ule is "ell!es'a/lis*ed '*a' a ene&al

co-enan' 'o &ene" o& e@'end a lease "*ic* ma8es

no p&o-ision as 'o '*e 'e&ms o; a &ene"al o&

e@'ension implies a &ene"al o& e@'ension upon '*e

same 'e&ms as p&o-ided in '*e o&iinal lease.

In '*e lease con'&ac' unde& conside&a'ion, '*e&e is

no p&o-ision 'o indica'e '*a' '*e &ene"al "ill /e

su/4>.

T*us, on a+ $?, $321, &esponden' and CAA,

p&edecesso&!in!in'e&es' o; pe'i'ione&, concluded

'*e lease a&eemen' in ques'ion "i'* a 'e&m

equi-alen' 'o '*e une@pi&ed po&'ion o; '*e lease

/e'"een Vela+o E@po&' and CAA.

As culled ;&om '*e '&ans;e&s e;;ec'ed p&io& 'o '*e

a+ $?, $321 a&eemen' o; &esponden' and

pe'i'ione&Js p&edecesso&!in!in'e&es', '*e &ene"al o;

'*e con'&ac' "as clea&l+ a' '*e op'ion o; '*e lessee.

Conside&in '*a' '*e&e "as no e-idence posi'i-el+

s*o"in '*a' &esponden' and CAA e@p&essl+

in'ended '*e &emo-al o; '*e op'ion ;o& '*e &ene"al

o; '*e lease con'&ac' ;&om '*e lessee, i' is /u' loical

'o conclude, al'*ou* '*e s'ipula'ion se';o&'* in

pa&a&ap* $2 appea&s 'o *a-e /een "o&ded o&couc*ed in some"*a' unce&'ain 'e&ms, '*a' '*e

pa&'ies a&eed '*a' '*e op'ion s*ould &emain "i'*

'*e lessee. T*is mus' /e so /ecause /ased on '*e

con'e@' o; '*ei& a&eemen's and /ols'e&ed /+ '*e
http://www.lawphil.net/judjuris/juri2011/dec2011/gr_161718_2011.html#fnt50http://www.lawphil.net/judjuris/juri2011/dec2011/gr_161718_2011.html#fnt50http://www.lawphil.net/judjuris/juri2011/dec2011/gr_161718_2011.html#fnt50


12/18

'es'imon+ o; &. a&iano Nocom o; Salem

In-es'men' and pa&'icula&l+ osila a/ana, one

o; '*e sina'o&+ "i'ness 'o '*e con'&ac' and a &e'i&ed

emplo+ee o; CAAJs Leal Di-ision '*e pa&'ies

&eall+ in'ended a &ene"al ;o& '*e same 'e&m as i'

"as '*en '*e usual p&ac'ice o; CAA 'o *a-e '*e

'e&m o; leases on lands "*e&e su/s'an'ial amoun'

"ill /e in-ol-ed in '*e cons'&uc'ion o; '*e

imp&o-emen's 'o /e unde&'a8en /+ '*e lessee 'o

i-e a &ene"al. In ;ac', i' clea&l+ appea&s '*a' '*e

&i*' o; &ene"al cons'i'u'es a pa&' o; '*e lesseeJs

in'e&es' in '*e land conside&in '*e mul'imillion

in-es'men's i' made &ela'i-e 'o '*e cons'&uc'ion o;

'*e /uildin and ;acili'ies '*e&eon and ;o&ms a

su/s'an'ial and in'e&al pa&' o; '*e

a&eemen'.#$9Emp*ases supplied.

In sum, '*e &ene"ed con'&ac' o; lease o; '*e su/o&iinal con'&ac' o;

lease> does no' pe&'ain 'o '*e Con'&ac' o; Lease

da'ed a+ $?, $321 /e'"een pe'i'ione& and

&esponden' alone, /u' also 'o '*e Con'&ac' o; Lease

da'ed Fe/&ua&+ $#, $312 /e'"een pe'i'ione& 9'*en

s'ill called CAA and Salem, as "ell as '*e

Con'&ac' o; Lease da'ed No-em/e& %1, $32?

/e'"een pe'i'ione& and Vela+o E@po&' O all '*&ee

con'&ac's /ein ine@'&ica/l+ connec'ed. Since '*e

Con'&ac' o; Lease /e'"een pe'i'ione& and Salem"as ;o& a 'e&m o; %# +ea&s, '*en '*e &ene"ed

con'&ac' o; lease o; /e'"een pe'i'ione& and

&esponden' s*all /e ;o& ano'*e& 'e&m o; %# +ea&s.

T*is cons'&uc'ion o; '*e &ene"al clause unde&

pa&a&ap* $2 o; '*e Con'&ac' o; Lease da'ed a+

$?, $321 /e'"een pe'i'ione& and &esponden' is mos'

consis'en' "i'* '*e in'en' o; '*e pa&'ies a' '*e 'ime

o; '*e e@ecu'ion o; said Con'&ac' and mos' e;;ec'ual

in implemen'in '*e same.

In addi'ion 'o c*allenin '*e e@clusi-e &i*' o;

&esponden' 'o &ene" '*e Con'&ac' o; Lease o-e& '*e

su/p&emises> leased /+ pe'i'ione& 'o &esponden', and

"*ic* &esponden' "as no' allo"ed 'o su/lease, is

'*e su/


13/18

6us' as '*e TC ad


14/18

amoun'in 'o ;alse &ep&esen'a'ion o& concealmen'

o; ma'e&ial ;ac's o& a' leas' calcula'ed 'o con-e+

'*e imp&ession '*a' '*e ;ac's a&e o'*e&"ise '*an, and

inconsis'en' "i'*, '*ose "*ic* '*e pa&'+

su/sequen'l+ a''emp's 'o asse&' 9% in'en', o& a'

leas' e@pec'a'ion '*a' *is conduc' s*all /e ac'ed

upon /+, o& a' leas' in;luence, '*e o'*e& pa&'+ and

90 8no"lede, ac'ual o& cons'&uc'i-e, o; '*e &eal

;ac's. As &ela'ed 'o '*e pa&'+ claimin '*e es'oppel,

'*e essen'ial elemen's a&e 9$ lac8 o; 8no"lede

and o; '*e means o; 8no"lede o; '*e '&u'* as '*e

;ac's in ques'ions 9% &eliance, in ood ;ai'*, upon

'*e conduc' o& s'a'emen's o; '*e pa&'+ 'o /e

es'opped 90 ac'ion o& inac'ion /ased '*e&eon o;

suc* c*a&ac'e& as 'o c*ane '*e posi'ion o& s'a'us o;

'*e pa&'+ claimin '*e es'oppel, 'o *is in


15/18

;o&eclosu&e sale 'o '*e mo&'ae de/'.

In '*ei& Ans"e&, '*e 6uicos admi''ed '*ei& de/' /u'

claimed '*a' '*e p&incipal o; '*e loan "as al&ead+

paid "*en '*e mo&'aed p&ope&'+ "as

e@'&a


16/18

and damaes. T*e Spouses analo alleed:

'*a' '*e+ *ad o/'ained a loan

;o& P$,555,555.55 ;&om a ce&'ain Beni'o Tan

upon a&&anemen's made /+ An'oninus

u-ienco, '*en '*e Gene&al anae& o;

PNBJs Ban8al B&anc* "*e&e '*e+ *ad

'&ansac'ed '*a' '*e+ *ad /een made 'o

unde&s'and and *ad /een assu&ed '*a'

'*e P$,555,555.55 "ould /e used 'o upda'e

'*ei& accoun', and '*a' '*ei& loan "ould /e

&es'&uc'u&ed and con-e&'ed in'o a lon!'e&m

loan '*a' '*e+ *ad /een su&p&ised 'o lea&n,

'*e&e;o&e, '*a' *ad /een decla&ed in de;aul'

o; '*ei& o/lia'ions, and '*a' '*e mo&'ae

on '*ei& p&ope&'+ *ad /een ;o&eclosed and

'*ei& p&ope&'+ *ad /een sold and '*a' PNB

did no' compl+ "i'* Sec'ion 0 o; Ac' No.

0$0#, as amended.

2. PNB and An'oninus u-ienco coun'e&ed'*a' '*e P$,555,555.55 loan o/'ained /+ '*e

Spouses analo ;&om Beni'o Tan *ad /een

c&edi'ed 'o '*ei& accoun' '*a' '*e+ did no'

ma8e an+ assu&ances on '*e &es'&uc'u&in

and con-e&sion o; '*e Spouses analoJs

loan in'o a lon!'e&m one '*a' PNBJs &i*'

'o ;o&eclose '*e mo&'ae *ad /een clea&

especiall+ /ecause '*e Spouses analo *ad

no' assailed '*e -alidi'+ o; '*e loans and o;

'*e mo&'ae and '*a' '*e Spouses analo

did no' allee *a-in ;ull+ paid '*ei&inde/'edness.

7. T*e TC decided in ;a-o& o; PNB '*a' '*e

;o&eclosu&e p&oceedins "e&e -alid. I' "as

no'ed '*a' du&in '*e p&e!'&ial, '*e Spouses

analo *ad a&eed 'o s'ipula'e '*a' PNB

*ad '*e &i*' 'o ;o&eclose upon '*e su/


17/18

PNBJs ;ailu&e 'o indica'e '*e

&a'e o; in'e&es' in '*e c&edi'

a&eemen's "ould no'

e@cuse '*e Spouses analo

;&om '*ei& con'&ac'ual

o/lia'ion 'o pa+ in'e&es' 'o

PNB /ecause o; '*e e@p&ess

a&eemen' 'o pa+ in'e&es' in

'*e c&edi' a&eemen's.

Ne-e&'*eless, '*e CA &uled

'*a' PNBJs inad-e&'ence 'o

speci;+ '*e in'e&es' &a'e

s*ould /e cons'&ued aains'

i' /ecause '*e c&edi'

a&eemen's "e&e clea&l+

con'&ac's o; ad*esion due 'o

'*ei& *a-in /een p&epa&ed

solel+ /+ PNB.

T*e CA ;u&'*e& *eld '*a'PNB could no' unila'e&all+

inc&ease '*e &a'e o; in'e&es'

conside&in '*a' '*e c&edi'

a&eemen's speci;icall+

p&o-ided '*a' p&io& no'ice

"as &equi&ed /e;o&e an

inc&ease in in'e&es' &a'e could

/e e;;ec'ed. I' ;ound '*a'

PNB did no' adduce p&oo;

s*o"in '*a' '*e Spouses

analo *ad /een no'i;ied/e;o&e '*e inc&eased in'e&es'

&a'es "e&e imposed and '*a'

PNBJs unila'e&al imposi'ion

o; '*e inc&eased in'e&es' &a'e

"as null and -oid ;o& /ein

-iola'i-e o; '*e p&inciple o;

mu'uali'+ o; con'&ac's

ens*&ined in A&'icle $057 o;

'*e Ci-il Code. ein;o&cin

i's >con'&ac' o; ad*esion>

conclusion, i' added '*a' '*e

Spouses analoJs /ein in

di&e need o; mone+ &ende&ed

'*em 'o /e no' on an equal

;oo'in "i'* PNB.

Consequen'l+, '*e CA,

&el+in on Eas'e&n S*ippin

Lines, -. CA, ;i@ed '*e

in'e&es' &a'e 'o /e paid /+ '*e

Spouses analo a' $%= pe&

annum, compu'ed ;&om '*ei&de;aul'.

ISSE: *e'*e& o& no' '*e&e "as no mu'uali'+ o;

consen' in '*e imposi'ion o; in'e&es' &a'es on '*e

SpousesJ loan despi'e '*e e@is'ence o; ;ac's and

ci&cums'ances s*o"in '*ei& assen' 'o '*e in'e&es'

&a'es imposed /+ PNB on '*e loan.

)ELD: No. T*e&e "as no mu'uali'+ o; consen'. T*e

c&edi' a&eemen' e@ecu'ed s'ipula'ed '*a' '*e loan

"ould /e su/de'e&mined

/+ '*e Ban8 'o /e i's p&ime &a'e plus applica/le

sp&ead, p&e-ailin a' '*e cu&&en' mon'*.> T*is

s'ipula'ion "as ca&&ied o-e& 'o o& adop'ed /+ '*e

su/sequen' &ene"als o; '*e c&edi' a&eemen'. PNB

'*e&e/+ a&&oa'ed un'o i'sel; '*e sole p&e&oa'i-e 'o

de'e&mine and inc&ease '*e in'e&es' &a'es imposed

on '*e Spouses analo. Suc* a unila'e&al

de'e&mina'ion o; '*e in'e&es' &a'es con'&a-ened '*e

p&inciple o; mu'uali'+ o; con'&ac's em/odied in

A&'icle $057 o; '*e Ci-il Code.

T*e Cou&' *as decla&ed '*a' a con'&ac' "*e&e '*e&eis no mu'uali'+ /e'"een '*e pa&'ies pa&'a8es o; '*e

na'u&e o; a con'&ac' o; ad*esion, and an+ o/scu&i'+

"ill /e cons'&ued aains' '*e pa&'+ "*o p&epa&ed

'*e con'&ac', '*e la''e& /ein p&esumed '*e s'&one&

pa&'+ 'o '*e a&eemen', and "*o caused '*e

o/scu&i'+. PNB s*ould '*en su;;e& '*e consequences

o; i's ;ailu&e 'o speci;icall+ indica'e '*e &a'es o;

in'e&es' in '*e c&edi' a&eemen'.

e spo8e clea&l+ on '*is in P*ilippine Sa-ins

Ban8 -. Cas'illo: '*e unila'e&al de'e&mina'ion andimposi'ion o; '*e inc&eased &a'es is -iola'i-e o; '*e

p&inciple o; mu'uali'+ o; con'&ac's unde& A&'icle

$057 o; '*e Ci-il Code, "*ic* p&o-ides '*a' '*e

con'&ac' mus' /ind /o'* con'&ac'in pa&'ies i's

-alidi'+ o& compliance canno' /e le;' 'o '*e "ill o;

one o; '*em.J A pe&usal o; '*e P&omisso&+ No'e "ill

&eadil+ s*o" '*a' '*e inc&ease o& dec&ease o;

in'e&es' &a'es *ines solel+ on '*e disc&e'ion o;

pe'i'ione&. I' does no' &equi&e '*e con;o&mi'+ o; '*e

ma8e& /e;o&e a ne" in'e&es' &a'e could /e en;o&ced.

An+ con'&ac' "*ic* appea&s 'o /e *ea-il+ "ei*ed

in ;a-o& o; one o; '*e pa&'ies so as 'o lead 'o an

unconsciona/le &esul', '*us pa&'a8in o; '*e na'u&e

o; a con'&ac' o; ad*esion, is -oid. An+ s'ipula'ion

&ea&din '*e -alidi'+ o& compliance o; '*e con'&ac'

le;' solel+ 'o '*e "ill o; one o; '*e pa&'ies is

li8e"ise in-alid.

PNB could no' also


18/18

c*ane a con'&ac', 'o "*ic* *e is a pa&'+, is o/lied

'o ans"e& '*e same and said pa&'+Js silence canno'

/e cons'&ued as an accep'ance '*e&eo;.

Las'l+, '*e CA o/se&-ed, and p&ope&l+ so, '*a' '*e

c&edi' a&eemen's *ad e@plici'l+ p&o-ided '*a' p&io&

no'ice "ould /e necessa&+ /e;o&e PNB could

inc&ease '*e in'e&es' &a'es. In ;ailin 'o no'i;+ '*e

Spouses analo /e;o&e imposin '*e inc&eased

&a'es o; in'e&es', '*e&e;o&e, PNB -iola'ed '*e

s'ipula'ions o; '*e -e&+ con'&ac' '*a' i' *ad

p&epa&ed. )ence, '*e -a&+in in'e&es' &a'es imposed

/+ PNB *a-e 'o /e -aca'ed and decla&ed null and

-oid, and in '*ei& place an in'e&es' &a'e o; $%= pe&

annum compu'ed ;&om '*ei& de;aul' is ;i@ed

pu&suan' 'o '*e &ulin in Eas'e&n S*ippin Lines,

Inc. -. CA. T*e CAJs di&ec'i-e 'o PNB 9a 'o

&ecompu'e '*e Spouses analoJs inde/'edness

unde& '*e o-e&si*' o; '*e TC and 9/ 'o &e;und 'o'*em an+ e@cess o; '*e "innin /id su/mi''ed

du&in '*e ;o&eclosu&e sale o-e& '*ei& &ecompu'ed

inde/'edness "as "a&&an'ed and equi'a/le. Equall+

"a&&an'ed and equi'a/le "as 'o ma8e '*e amoun' 'o

/e &e;unded, i; an+, /ea& leal in'e&es', 'o /e

&ec8oned ;&om '*e p&omula'ion o; '*e CAJs

decision on a&c* %7, %551.

Indeed, '*e Cou&' said in Eas'e&n S*ippin Lines,

Inc. -. CA '*a' in'e&es' s*ould /e compu'ed ;&om

'*e 'ime o; '*e

1308,mutuality of contracts

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