3 The Court deems it proper to award interest in favour of Allegro As held in

3 the court deems it proper to award interest in

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3. The Court deems it proper to award interest in favour of Allegro. As held in the case of Eastern Shipping Lines, Inc. vs. Court of Appeals , the following guideline should be followed in the award of interest: When the obligation is breached, and it consists in the payment of a sum of money , the interest should be that which may have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation , the rate of interest shall be 12% per annum to be computed from default , i.e., from judicial or extrajudicial demand under and subject to the provisions of Article 1169 of the Civil Code. WHEREFORE, the petition for review is DENIED. The Decision of the Court of Appeals is AFFIRMED with the MODIFICATIONS that the award of back rentals for the period 1 January 2001 to 31 August 2001 to Ortigas & Company, Limited Partnership is DELETED and that petitioner Edsel Liga is ORDERED to pay respondent Allegro Resources Corporation legal interest of twelve percent (12%) per annum on the back rentals from the date of extrajudicial demand on 15 December 2001 until fully paid. Notes Article 1159, NCC Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Article 1169, Par. 1, NCC Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfilment of their obligation. 1-C 2015-16 (ALFARO) Page 2 of 2
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  • Fall '19
  • Leasing, Leasehold estate, Rental agreement, Allegro

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