Practice question
A lender relies on an account spreadsheet that silently adds unpaid conventional interest to principal every month. The contract contains no capitalization stipulation, and no Article2212 judicial-demand basis or other exception is established for that computation. Can the spreadsheet alone supply Article1959 contractual capitalization?
- No; unilateral bookkeeping does not establish the required stipulation
- Yes; every spreadsheet conclusively amends the contract
- Yes; unpaid interest always compounds automatically
- Yes; the borrower’s failure to receive the sheet proves consent
- Yes; Article1959 prohibits examination of the agreement
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1958–1959,2212.
- Nacar v Gallery Frames GR189871 August13,2013 MAIN: https://lawphil.net/judjuris/juri2013/aug2013/gr_189871_2013.html Final monetary judgment interest.
- Lara’s Gifts v Midtown GR225433 September20,2022 MAIN resolution: https://lawphil.net/judjuris/juri2022/sep2022/gr_225433_2022.html MAIN compensatory-interest framework and final monetary award.
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