De La Rama Centre v. New Negros Freedom

Summary

This case involves a commercial dispute between hardware supplier New Negros Freedom, Inc. and construction company De La Rama Centre, Inc. over unpaid construction materials worth P3.1 million delivered from 1997-1998. While the principal amount was paid during litigation, the parties disputed the stipulated 24% annual interest and attorney's fees. The Supreme Court upheld the validity of the 24% interest rate, ruling it was not excessive or unconscionable, and affirmed 10% attorney's fees. The Court emphasized that stipulated contractual terms constitute law between parties under Civil Code provisions, and experienced business entities cannot claim deception regarding clearly stated commercial terms in invoices.