- Statute
- Civil Code
- Article
- Art. 1956
- Topic
- Simple Loan or Mutuum
- Status
- In force, as amended
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE XI LOAN General Provisions
- Chapter
- CHAPTER 2 Simple Loan or Mutuum
- Formerly
- Art. 1755a of the old Civil Code
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
No interest shall be due unless it has been expressly stipulated in writing. (1755a)
Intellegal Wiki · In plain terms
Interest on a loan or debt can only be collected if the parties expressly agreed to it in writing. A merely verbal agreement to pay interest is not enough—without a written stipulation, no interest is owed even if money was actually lent.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Spouses Tagumpay N. Albos v. Spouses Nestor M. Embisan, the Supreme Court held: Reversed the CA; compound interest must be stipulated in writing (Art. 1956) and a 5% monthly (60% per annum) rate is unconscionable and void (Art. 1306), nullifying the foreclosure and requiring recomputation at the legal rate.
One leading Supreme Court case applying this provision.
Cases applying this article
- Rosemarie Q. Rey v. Cesar G. Anson
- Spouses Benito Baysa v. Spouses Fidel Plantilla
- Heirs of Zoilo Espiritu v. Spouses Maximo Landrito
- Francisco G. Chan v. Bank of the Philippine Islands
- Philippine Commercial v. William Golangco Construction Corporation
- Ibm Philippines v. Prime Systems Plus
- Spouses Tagumpay N. Albos v. Spouses Nestor M. Embisan
- Rolando C. de La Paz v. L & J Development Company
Other Supreme Court decisions also apply this article.