Victor Yam & Yek Sun Lent v. The Court of Appeals

Summary

This case involved a loan dispute between printing business owners and a lending corporation. Petitioners obtained two loans totaling P800,000, with the first fully paid by 1985. After private respondent was placed under Central Bank receivership, petitioners claimed they reached an oral agreement with the company president to waive penalties and service charges on the second loan, paying only principal and interest. The Supreme Court rejected this claim, ruling that express condonation of debt over P5,000 must be in writing under the Civil Code. The Court held that a payment voucher notation could not bind the creditor, and that the company president lacked authority to condone debt after receivership was established. The decision affirmed petitioners' liability for P266,146.88 in unpaid penalties and service charges, demonstrating the strict legal requirements for debt forgiveness and the limitations on corporate authority during receivership.