Alabado Law

Arbitrary, Illegal, and Unconscionable INTEREST RATE   Parties to a contract are free to stipulate the terms and conditions of their agreement, including the payment of interest and the interest rate. Under Article 1159 of the Civil Code, their respective obligations arising from their contract have the force of law between the parties and should be complied with in good faith. Accordingly, with respect to the payment of interest, the debtor (obligor) is bound to pay the interest rate stipulated and agreed upon,  EXCEPT when no interest rate was agreed upon, or when the interest rate is illegal and unconscionable, or the imposition of interest is arbitrary.   In cases where the interest rate was not agreed upon, or its imposition was arbitrarily made only by the creditor (obligee), or when the interest rate imposed is illegal and unconscionable, the courts will step in and impose the prevailing and legal interest.    The obligation to pay interest may arise eith...

A Kill Switch to Data Privacy Protection?   When Filipinos make laws, we put our own “Filipino flavor” to the law. Does it make it more palatable to the Filipinos or to Philippine setting? Or does it create a bad taste in the mouth?   The Philippine Data Privacy Act of 2012  (Republic Act No. 10173)  aims to protect the fundamental human right of everyone to data privacy. The Philippines and its people give the highest degree of value to human rights and we share this value to all, regardless of nationality, religion, ethnicity or ideology.  The Philippine Declaration of Human and People ’ s Rights before the Human Rights Osaka (HURIGHTS) provides:   “We, peoples of the Philippines, give highest value to the dignity and fullness of life of the human person and share a common aspiration for human rights—even as we speak different languages and dialects, profess different spiritual beliefs and uphold different ideologies.        ...