"A contract that is freely executed has the force of law between the parties. This time-honored principle of autonomy in contracts is, however, not absolute. It is balanced by the governing rule in Article 1306 of the Civil Code which declares that parties may not stipulate on matters which are contrary to law, morals, good customs, public order, or public policy.1 Guided by this premise, the parties' principal loan of PHP 467,600.00, payable for five years at PHP 16,895.77 per month, inclusive of interests, which, later on condemned the debtors to pay the sum of PHP 1,175,638.12, yet still leaving more unpaid balance, cannot be upheld. The interests and penalties charged by the creditor are patently exorbitant and unconscionable; hence void.
Before us is a Petition for Review on Certiorari2 under Rule 45 of the Rules of Court, assailing the July 6, 2021 Decision3 and the December 22, 2021 Resolution4 of the Court of Appeals (CA) in CA-G.R. CV No. 115157, which affirmed the trial court's judgment declaring the interest rates imposed on respondents' loan void for being unconscionable and contrary to morals.5"
SECOND DIVISION
[ G.R. No. 258526, January 11, 2023 ]
MANILA CREDIT CORPORATION, PETITIONER, VS. RAMON S. VIROOMAL AND ANITA S. VIROOMAL, OFFICE OF THE CLERK OF COURT AND EX-OFFICIO SHERIFF OF THE REGIONAL TRIAL COURT OF PARAÑAQUE CITY, AS REPRESENTED BY ATTY. JERRY R. TOLEDO AND SHERIFF ALEJANDRO P. ABREMATEA, AND THE REGISTER OF DEEDS OF PARAÑAQUE CITY, RESPONDENTS.
https://lawphil.net/judjuris/juri2023/jan2023/gr_258526_2023.html
