Examples of Sum to be paid
Interest at fixed rate:
I promise to pay Pioloor order P10,000.00,
with interest at 15% per annum.
Interest at increased or reduced rate:
I promise to pay Piolo or
order P10,000.00 with interest at 18% per annum from date until
paid; 15% if paid when due.
Accrual/rate of interest not specified:
If no date from which
interest is to run –computed from the date of the instrument; if no
date in the instrument – computed from the issue. If rate is not
specified – the legal rate is6% (Article 2209, civil code, now 12%)
- can still be negotiated, the contract remains valid
as to the principal only.
What is the meaning of
Stated installments mean that:
a. The interest of each installments, and
b. The due date of each installment must be fixed in the instrument.
Example: I promise to pay Piolo or order the sum of P1,000.00 in two
installments as follows:
P500.00, on or before November 1, 2004 and
P500.00, on or before December 1, 2004.