This case has been cited 3 times or more.
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2015-07-01 |
BERSAMIN, J. |
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| The imposition of the annual or amortization interest on the price for the purchase of a lot on installment was valid and enforceable. As the Court has explained in Relucio v. Brillante-Garfin:[29] | |||||
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2008-04-23 |
PUNO, C.J. |
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| Moreover, the case of Relucio v. Brillante-Garfin (Relucio),[47] involves similar facts to the case at bar where we ruled as follows:Examination of the record shows that the questioned Contract to Buy and Sell the subdivision lots provided for payment by private respondent of the sum of P200.00 as downpayment, and that "the balance [of P10,600.00] shall be paid in 180 monthly installments at P89.45 per month, including interest rate at six percent (6%) per annum, until the purchase price is fully paid." This stipulation clearly specified that an interest charge of six percent (6%) per annum was included in the monthly installment price: private respondent could not have helped noticing that P89.45 multiplied by 180 monthly installments equals P16,101.00, and not P10,600.00. The contract price of P10,800.00 may thus be seen to be the cash price of the subdivision lots, that is, the amount payable if the price of the lots were to be paid in cash and in full at the execution of the contract; it is not the amount that the vendor will have received in the aggregate after fifteen (15) years if the vendee shall have religiously paid the monthly installments. The installment price, upon the other hand, of the subdivision lots the sum total of the monthly installments (i.e., P16,101.00) typically, as in the instant case, has an interest component which compensates the vendor for waiting fifteen (15) years before receiving the total principal amount of P10,600.00. Economically or financially, P10,600.00 delivered in full today is simply worth much more than a long series of small payments totalling, after fifteen (15) years, P10,600.00. For the vendor, upon receiving the full cash price, could have deposited that amount in a bank, for instance, and earned interest income which at six percent (6%) per year and for fifteen (15) years, would precisely total P5,501.00 (the difference between the installment price of P16,101.00 and the cash price of P10,600.00 ) To suppose, as private respondent argues, that mere prompt payment of the monthly installments as they fell due would obviate application of the interest charge of six percent (6%) per annum, is to ignore that simple economic fact. That economic fact is, of course, recognized by law, which authorizes the payment of interest when contractually stipulated for by the parties or when implied in recognized commercial custom or usage. | |||||
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2005-12-13 |
CORONA, J. |
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| In Relucio v. Brillante-Garfin,[15] this Court held that the vendor and the vendee were legally free to stipulate on the manner of payment. Since the vendee opted to purchase a subdivision lot on installment, he was obligated to pay interest on the cash price whether the imposition of interest and the rate of such interest were specified in the contract or not, i.e., whether or not the interest was specifically itemized as an add-on to the (cash) price which the vendee agreed to pay. | |||||