- Petitioner
- Ibm Philippines
- Respondent
- Prime Systems Plus
- Citation
- G.R. No. 203192
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Del Castillo, J.
- Decided
- August 15, 2016
Summary
IBM Philippines sued Prime Systems Plus for unpaid obligations totaling P45,997,266.22 on delivered ATMs and computer hardware, claiming 3% monthly interest. The RTC initially ruled in favor of IBM, finding the interest rate valid. However, the Court of Appeals modified the decision, reducing the amount to P24,622,394.72 with 6% legal interest, ruling that the 3% monthly interest lacked proper written agreement under Article 1956 of the Civil Code. The Supreme Court affirmed the CA decision, emphasizing that interest rates must be expressly stipulated in writing by mutual agreement, not through unilateral imposition. The case establishes important precedent on contractual interest requirements and the burden of proving mutual agreement on interest stipulations in commercial transactions.