Mondragon International Philippines v. China Banking Corporation

Summary

China Banking Corporation sued Mondragon International Philippines, Inc. (MIPI) and Jose Antonio U. Gonzalez for collection of P49,500,000.00 loan debt. MIPI had issued promissory notes with Gonzalez as surety but defaulted on payments. The key legal issue was whether prior demand was necessary for default, given express contractual stipulations waiving such requirement. All three court levels ruled for the bank, finding the promissory notes clearly provided for immediate default without notice upon non-payment. The Supreme Court affirmed, emphasizing that contractual stipulations have force of law between parties and that factual findings of lower courts are binding. The case demonstrates enforcement of banking loan agreements and surety obligations under commercial and civil law principles.