Practice question
What contractual mechanism does Article1959 expressly permit for due and unpaid interest?
- Agreed capitalization as added principal that earns new interest
- Automatic capitalization of every future charge without agreement
- Automatic imprisonment for nonpayment
- Automatic ownership of collateral
- A gift of the principal to the borrower
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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